The Ultimate Business Advantage; Creating and Sustaining a Great Business Culture

“The thing I learned at IBM is that culture is everything.”

Louis V. Gerstner, former CEO IBM

The Journey

• To define the meaning of “organizational culture”

• To share the value of having a great organizational culture

• To highlight the building blocks of a dynamic and thriving “organizational culture”

• To establish a framework for how each of you can become champions of the company culture

Defining Business Culture“Culture defines priority…it is your roadmap” Howard Schultz, CEO Starbucks

• Culture defines an organization’s brand in the eyes of its employees, customers and financial stakeholders.

• Culture provides a compelling sense of purpose, passion, belonging, believing, acting and dreaming among the employees of a company.

• Culture attracts talent, retains talent, creates energy and momentum… thereby making everyone more successful.

• Culture is the heart & soul of every great organization…especially those that thrive over a long period of time.

Great Business Cultures are“The clichés of a culture sometimes tell the deepest truths.”

Faith Popcorn; The Popcorn Report

• Those in which the actions communicate the values, ethics and desires of the organization such that it uniquely defines who they are.

• Those in which the leader talks, walks and lives the mission, vision, values and standards of the business.

• Those organizations in which people do the right things because they believe it is the right, not because they have to.

“A culture is made or destroyed by its articulate voices.”

Ayn Rand, author

The Building Blocks of a Great Culture

A Shared & Compelling Purpose…“When you discover your mission, you will feel its demand. It will fill you with an enthusiasm and a burning desire to get to work on it.” W. Clement Stone

• The “purpose” of the organization represents the reason why the business is here…why it does what it does

• The purpose binds the collective efforts of individuals to a common and captivating reason for performing.

• The purpose provides a shared identity and sense of worth, while empowering business innovation through individual creativity and expression

Club Industry Examples

We have a passion for improving the quality of life through fitness, wellness, sports and fun.” –

Wellbridge, U.S.

“We create a healthy prosperous future for ourselves, our family, and whole nation.” –

World Class, Russia

A Captivating Vision“A Vision is truly the perfume of the mind” Karaoke Capitalism

• An organizational “vision” is the dream of the organization…it is the your businesses aspiration of greatness.

• A vision provides a compelling goal that channels the creative forces of an organization’s people…it guides greatness toward a singular destination.

• A vision inspires, motivates and energizes people…it is power

Club Industry Examples

“To make fitness a way of life for everyone.” –

24 Hour Fitness, Global

““Become recognized leader of the global fitness industry due to quality service, new decisions, professionalism

of company employees.” –World Class, Russia

Shared Core Values…“Values are magnets…values attract” Karaoke Capitalism

• Values are the shared beliefs your organization has…they are the foundation for your identify

• Values are a tool that align the attitudes and behaviors of an organization…values drive attitude… attitude influences behavior… and behavior drives outcomes.

• Values help create an environment of “like-minded” individuals which in turn spawns and communicate synergy among a diverse population of individuals.

Club Industry Examples

personal integrity and character, the member/guest is king,

plan your work/work your plan, win/win relationships

and continuous growth –

ClubCorp, U.S.

people, quality, efficiency, leadership, creativity

and responsibility/reliability –

World Class, Russia

Artifacts & Traditions“Tradition is a guide, not a jailor” William Somerset Maugham

• Artifacts are the physical manifestations of your culture…they are the tangible reminders of your mission, vision and values

• Artifacts may be statues… pictures… buildings… etc.

• Traditions are the practices, rituals and standards that portray your organization purpose, vision and values…they are a part of your language and can never be allowed to die!

Industry artifacts & traditions

World Class Games – World Class Fitness, RussiaGods & Goddesses Awards – Telos Fitness, Dallas, TXStar Service Awards – ClubCorp, Dallas, TXHall of Fame - New York Athletic Club, NY, NYWooden Award – Los Angeles Athletic Club, Los Angles, CA

“Traditions are guideposts driven deep in our sub-conscious minds. The most powerful ones are those we can’t even describe, aren’t even aware of.” Author Unknown

Myths & Legends…Every company has its own language, its own version of its own history (its myths) and its own heroes and villains (its legends) both historical and contemporary.”

Michael Hammer in Beyond Re-engineering

• Myths are the “stories” that share your culture with everyone…they codify your history and portray how you want your employees to believe and act.

• Stories provide a means of spreading the “spirit” of your culture…they can generate “emotional buy-in” from your employees and customers.

• Legends are the employees who exemplify your culture…they are the employees, past and present, whose actions and behaviors serve as a role model for the organization…think Steve Jobs at Apple… Howard Schultz at Starbucks… Robert Dedman at ClubCorp.

“Legends die hard. They survive as truth rarely does.” Helen Hayes

Myths and legends dire hard, we love them for the extra dimension they provide, the illusion of near infinite possibility to erase the narrow confines of most men’s reality.”

Hunter Thompson

Story Tellers“Stories translate information into emotion.” Karaoke Capitism

• Story tellers are the champions, cheerleaders and historians of your culture.

• Storytellers communicate the myths of the culture, “expanding” on facts and providing simple, yet inspiring messages about what the organization expects of each and every employee all the time.

• Executives, leaders and managers are the most important storytellers in an organization.

“Each time a storyteller clothed the body of the myth in their own traditions, so that listeners could relate more easily to its deeper meaning.”

Championing the Culture“The only thing of real importance that leaders do is to create and manage culture.”

Edgar Schein, Sloan School of Management, MIT

• Leaders and all employees must become role models for the company culture.

• Leaders must serve as the “story tellers” who sustain the traditions, myths and legends that are part of company lore.

• Leaders and employee must become the “innovators” for the actions and strategies that the company will use to build and sustain its culture.

• Companies can create culture teams and leadership cabinets that take the lead in spreading the culture (e.g., Club Corp, World Class, etc.)

“You can preach a better sermon with your life than with your lips.”Oliver Goldsmith

Championing the Culture“If you do not manage culture, it manages you and you may not even be aware of the extent to which it is happening.”

Edgar Schein, Sloan School of Management, MIT

• Leaders need to take the mantle of leadership in “modeling” the culture for every employee, member and guest.

• Modeling a culture begins with each decision a leader make, followed closely by each action they take…making a wrong decision, or acting incorrectly can destroy a culture.

• Leaders must recognize and reward employees who live the culture each and every day!

“But it would have fractured the culture of the company” - Comment by Howard Schultz of Starbucks in response a question about making a decision not in line with the company culture

“We are what we repeatedly do. Excellence then, is not an act, but a habit”Aristotle

In Conclusion

• Culture represents the heart and soul of an organization…it is the brand, the roadmap and the ultimate measuring stick of greatness

• With a strong culture, organizations can rise to the top, separating themselves from their competitors, but without a strong culture an organization is doomed to mediocrity

• Great cultures are built on a common mission, vision and values, supported by legends and tradition, and carried forward by storytellers and champions.

“A people without knowledge of their past history,

origin and culture is like a tree without its roots.”

Author unknown

Insight…We begin by seeking to understand, followed by analyzing the data, resulting in a story only the

numbers can tell.

Inspiration…with the numbers in hand, we generate those “magic facts” that tell you the real story about

your business and its impact on your bottom line.

Impact…with inspiration driven by insight, we assist you with developing and executing strategies that drive

greater loyalty and profitability.

Stephen Tharrett, Co-founder and Principal | stevet@club-intel.com | 972.746.7605

• 20 years leading athletic, golf and tennis as VP and SVP of Operations at ClubCorp

• 2+ years as CEO of the Russian Fitness Group

• 10+ years as a consultant in the fitness and private club industry

• Author of 8 business books on the club industry

• Former president of IHRSA

Mark Williamson, Co-founder and Principal | markw@club-intel.com | 214.232.2389

• 17 years heading up employee and member insights as VP of Research at ClubCorp International

• 5 years as Senior Director of the Guest Experience at Brinker International (e.g., Chili’s, Maggiano’s, On the Border, Romano’s Macaroni Grill, Corner Bakery)

• 2+ years as Executive Director of Consumer Insights at Applebee’s

• 2 years as Director of Research at Match.com