No matter how good your services and products, your employees, or your people, without a strong culture your firm will never fully succeed.

It is indisputable that culture and performance are closely interwoven, but the two comprise a very complicated relationship, and many brilliant leaders overlook this link as to why their company's performance is not as good as their competitors'.

As a consultant, the great clients I have worked with have used high-performance values and behaviors to inspire loyalty from employees who want to be part of a great team. They create advocates. These employees rave about the firm to clients, peers and recruits. They generate commitment to go the extra mile and do the right thing, not just the easy thing.

At these firms, leaders do not take culture for granted; they manage it. This is not a simple task, because it requires engaging employees' inherent beliefs about the value they place on work, the firm, and how they all need to work for a common, shared goal and vision.

NOT SETTLING FOR GOOD ENOUGH

Let's be honest: We live in a “C-minus” society where mediocrity has become the norm for many.

Harsh words, yes, but in our society, truly excelling is no longer considered a prime value. For most people, good enough is good enough. But those aren't the people agency and brokerage firm principals should want to work with.

One effective way of bringing this point home is by challenging agency owners and brokerage principals to adopt what I call a four/five rating culture, where only above-average scores on a 1-5 ranking system are acceptable.

In its simplest form, a four/five rating culture is creating an environment where everyone knows that mediocrity is not accepted. Instead, outstanding is the norm.

What the four/five rating culture does is change behavior. Creating a system like this helps principals see how culture overall can create high performers.

Over time, the adoption and implementation of this strategy will greatly change the attitudes and performance of the firm's people and the organization.

The four/five rating culture will define the attitude of the firm's people—and that will be reflected in the attitudes of the firm's customers and the firm's marketplace. It will, in short, build the firm's reputation.

When it comes to employees who don't fit the culture, an often-heard excuse is: “Well, I put up with John Doe because he performs well.”

This is crazy. A principal is essentially saying that their culture is really not that important. They are saying it is okay to have cracks in the core foundation.

The bottom line is that a firm should not tolerate any employee who cannot live by the cultural values the firm has established. The non-adherence to behaviors that do not support a firm's core values cannot be tolerated. Such employees must first be warned they are not living up to the values established by the firm. If they don't change, they will be terminated. It's that simple.

GOING FROM GOOD TO GREAT

The link between high-performance companies and culture, employees and accountability is indisputable. In high-performance cultures, effective leaders clearly articulate a strategic framework of mission, vision and values, strategic goals, and the critical measurable priorities to which all employees are held accountable.

Taking the time and making the investment in creating a culture of high performance is worth the effort. Companies that achieve a high-performance culture will see greater returns and profitability, and everyone—from the receptionist to the CEO—will find it a more exciting, vibrant place to work.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.