Not product, not price, not position. Executive coach John Spence says these days the **5 sustainable competitive advantages** of any company are People, Culture, Customer Relationships, Brand, and Data.

[Module one ](https://www.thegrowthfaculty.com/blog/peopleatwork)of Growth Facultys Senior Leadership Program dealt with getting, growing, and keeping quality people.

Creating a **winning culture** was the focus of module two. Heres a summary of some of Johns main points.

**Culture = Cash**

_As goes the leadership team, so goes the whole company_.

John says that the single biggest place a coach or leader can positively affect a company is a [positive workplace culture.](https://www.thegrowthfaculty.com/blog/positiveworkplaceculture) It has an exponential impact on revenue, he says, and a bad/toxic culture \(one of [Adam Grant's 'deadly sins'](https://www.thegrowthfaculty.com/blog/adamgrantworkculture) of culture\) is one of the surest ways to see a company go out of business.

In fact, John says one study showed **91%** of 1200 surveyed senior executives in global companies agreed that culture was as important as strategy for business success.

_The customers experience will never exceed the employees experience. If you dont have a great culture it is impossible for them to deliver that to the end customer._

**Employees not engaged**

John says surveys of Australian workers show that 23% of employees are engaged \(rowing like they want to win\), 67% of workers are not engaged \(oars dragging in the water\), and 11% of workers are actively disengaged \(theyre not rowing, theyre drilling holes in the boat\).

He says that shows that **78% of employees dont really care**. Theyre along for the ride, and this is dangerous for business.

**So, what exactly is culture?**

The definition of culture is: An organisation is the collective set of values, beliefs and behaviours that shape how employees interact, make decisions, and achieve goals.

It serves as the **invisible** framework that guides actions and unifies the workforce, directly impacting performance, employee engagement and long-term success.

John says that culture should be _by design, not by default_. When asked Have you carefully designed the culture in your organisation? 68% of delegates said yes, they had.

- **Action step:** What are the five words that describe the culture of your organisation. \(Image\) Go back and ask your whole team. Often the senior team will put a beautiful list, but for 80% the words are completely different. Its surprising that think everything is rosy but when its anonymous what employees actually say.

**When values are clear, decisions are easy**

Companies with the highest employee engagement \(i.e. WD40, Medtronic\) have a culture of people first \(one of the leadership styles known as servant leadership\). They live their values which include caring for their workforce, loving them, treating them well.

- **Action step:** Do you have a written list of values that you refer to when you make major decisions? \(32% of delegates said yes, 68% said no\). What are the values of your company?

Look at your company values. On a scale of 1 to 10 \(10 = we live the values, 1 = we have a poster on the wall\) do your behaviours match the values, how well do you live the values in your company?

**Lead from the top**

Toxic organisations do exactly the reverse  they may have stated values, but they dont live up to them. Instead, its how to maximise profit, and they overwork and underpay their employees, lean on their customers, and lean on their employees.

When youre trying to manage up \(to a toxic leader or a leader who doesnt get it\) John suggests that if you have a great relationship with that leader, talk to that leader _This is what I see_ \(use I statements\). You may want to get others to join you in a discussion _This is what we need to change._ If that doesnt work, go to their peer. If that doesnt work, send a letter to them or to the board \(signed by others\).

John says company values must be led from the top. Its How much do you love your people? he says.

- **Action step** : What are your personal core values. Score yourself on a scale from 1 \(far away from living it\) to 10 \(Im a living example of this\).

- **Action step** : What negative behaviours that dont align with your values do you tolerate? What do you refuse to tolerate \(that youre proud of\)?

**Characteristics of a winning culture**

John says the characteristics of a winning culture include:

1\. **Transparency**  The key is [psychological safety](https://www.thegrowthfaculty.com/blog/psychologicallysafeworkplaces). People must feel safe and certain there will be no retribution if they bring forth a problem. Thank them.

2\. **Work-Life Balance**  Flexibility is one of 7 top things people look for before joining a company.

3\. **Professional Growth**  [Employee training and development](https://www.thegrowthfaculty.com/blog/benefitsoftraininganddevelopment), and clear career paths.

4\. **Recognition and Reward**  Every 7-10 days praise and recognise. Have performance bonuses.

5\. **Autonomy**  Freedom to make decisions.

6\. **Inclusive Environment**  A culture that values [diversity and inclusion](https://www.thegrowthfaculty.com/blog/diversityandinclusioninworkplace).

7\. **Ethical Leadership**  Leaders who are trustworthy and values driven.

8\. **Team Cohesion**  A collaborative atmosphere.

9\. **Job Security**  Stable employment.

10\. [**Purpose**](https://www.thegrowthfaculty.com/blog/leadingwithpurpose) **and Impact**  A sense their work contributes to larger goals.

**Philosophy of business**

John asked delegates What is your philosophy of business? He explained that one company may have an attitude of kill the competition where others see competitors as growing the pie, and being people to co-operate with occasionally.

So, whats your philosophy on employees? Competition? Customer Relationships? Customer Service? Pricing? Vendors? Quality? Contracts?

This is what forms your culture.

- **Action step:** What is your personal philosophy on each aspect of your business?

**Noble purpose**

John told a story about a prosthetic leg manufacturer which took customers around the building to meet staff before they walked out the front door. Medtronic, he says, also brings in people whose family member has had a pacemaker fitted to talk to staff about the difference its made to their lives.

- **Action step:** What is the noble purpose of your organisation? \(John Spences own noble purpose is To help companies to be more successful\).

- **Action step** : Ask yourself What can I do to connect people in my company emotionally to our noble purpose?

**Culture at a distance**

John says that one of the hardest thing we struggle with right now is How do you maintain a healthy work culture at a distance?

He says you must strategically plan spontaneous interaction\! Its important to keep some level of a human interaction. Each week John would have one staffer bring up an icebreaker topic to kick off meetings.

**Communicate more**

_Ambiguity breeds mediocrity._

John told delegates it is impossible to over-communicate.

_You need to talk about vision, mission, values, purpose, strategy over and over and over again._

He says the best companies have a vivid compelling and well communicated vision and strategy for growth.

**Mission vs. purpose**

**Mission** is: This is where were going. Where do you want to be in the future? Who would miss you when youre gone?

**Purpose** is: This is what we do that changes peoples lives. How does your company put a dent in the universe?

To engage disengaged people, find out what their **personal purpose** is. To improve [employee experience](https://www.thegrowthfaculty.com/blog/customerexperienceemployeeexperience), get to know your people, says John. Find out their drivers. Tie their vision, mission, values, purpose with your companys vision, mission, values, purpose.

Next module will deal with: Extreme Customer Focus. _Whoever owns the voice of the customer owns the marketplace_. Learn to own the voice of the customer better than your competition can.

N.B. For John Spences Essence of Strategy  12 pillars of strategy, send him an email at [John@johnspence.com](mailto:John@johnspence.com)

__**Empower Your Workforce With Growth Faculty Memberships**

A company cannot sustain success and grow without a team of motivated, happy and empowered employees. So now, more than ever, managers must prioritise the wellbeing of their employees, especially if they are working as hybrid/remote teams.

Having [_Growth Faculty membership_](https://join.thegrowthfaculty.com/growthfacultypass/) grants your employees 12 months of unlimited access to masterclasses and interviews with world-class coaches and thought leaders, engaging events, networking opportunities and an on-demand library of leadership resources. \(See our [2023 line-up of live virtual and in-person events](https://www.thegrowthfaculty.com/event.php?eventId=a1J4G000008xoC7&promoCode=Blog&utm_source=TGF&utm_medium=blog)\)

**Discounts to Adam Grant LIVE in 2024**

If your organisaton or team wants to really kickstart growth and performance in 2024, don't miss work-life and future of work expert, organisational psychologist Adam Grant. With [Growth Fac](https://join.thegrowthfaculty.com/#plans)[](https://join.thegrowthfaculty.com/#plans)[ulty membership](https://join.thegrowthfaculty.com/#plans) you get discounts and further group discounts to our in-person events. Plus, there are EARLY BIRD TICKETS until December 15, 2023 to [ADAM GRANT LIVE ](https://www.thegrowthfaculty.com/event.php?eventId=a1J9g000000R00ZEAS)on his new book _Hidden Potential_ , and topics around work-life and work culture. Adam will be appearing on stage in Melbourne and Sydney in February 2024. Tickets selling fast \(VIP Melbourne is sold out, limited seats left in Sydney\) so book now\!

Keen to save your spot for our next events? [**See who's up next**](https://www.thegrowthfaculty.com/?promoCode=Blog#liveevents)[ **.**](https://growth.lightning.force.com/lightning/r/Blog_Post__c/a1d4G000004oYwKQAU/view)

Cultivating a Winning Organisational Culture

Summary of Module 2 of our Senior Leadership Program with John Spence

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Stay Inspired

Cultivating a Winning Organisational Culture

Summary of Module 2 of our Senior Leadership Program with John Spence

Keep informedStay Inspired

Keep informed
Stay Inspired