HOLLYWOOD, Fla. -
That is, culture related to ethics in how business is conducted, how people are treated and how leadership rolls downhill to affect everyone in the organization.
The panel included Tony Saponaro, managing director and national sales manager for Wachovia Securities Investment Services Group, Charlotte, N.C., Linda Green, EVP for Wealth Management of Colonial Brokerage, Inc., Montgomery, Ala., Dan Arnold, president of LPL Financial Institutions Services, Charlotte, and moderator Tim Kight, president of Focus 3, a consulting firm in Columbus, Ohio. They were in agreement on the notion that while it is preferable to make profits, people are important, too.
Saponaro noted that Wachovia's acquisition of First Union presented challenges to the cultural landscape and "took weeks and months" longer to assimilate a shared operation than planned. "But we said that we were there for a very special purpose: to put very clear metrics on how we are going to define success. Is it overly competitive? Maybe, but it is energizing. And we won't lose sight of our mission and vision, which is to be the best, most trusted brokerage firm in the industry."
Green said Colonial Brokerage was formed in 2001, "when fixed annuities were very big" and formulating a culture was a means of keeping the momentum going. "We saw the culture we created as setting a foundation for sustainable growth and a business model that reinvigorated our employees." They looked at all elements, she said, including compensation, expense allocation and "purposefully did team-building activities" including social events like karaoke nights to foster camaraderie. "It's our aim to operate at the top level in our industry," she avowed. "We adhere to the strong ethical behavior and adherence to high regulatory standards."
Arnold said "culture isn't an overnight thing," and related how an off-chance 15-minute meeting with a consultant six years ago grew into rethinking the importance of corporate culture. "That was my 'Wow' moment, when I realized that we were clueless about culture. That challenged us to have a breakthrough learning experience. And now, I liken it to riding a bike. Once you learn balance, it becomes who you are, a skill you have that you can't forget. It's not a list you keep in a drawer that you close and never take out again," he said.
Arnold then began a program of educating executive management to shift their thinking. "I asked them to wonder aloud: will you be the cause of what happens day-to-day? And I ask myself, what are we doing to affect our employees and help them perform according to our expectations?" This reorientation went all the way down to front line folks.
Moderator Kight said, "Culture is what leads when no one is watching." His advice was to "never let the lower bar win," when things start to get tough and people look to trim corners. "There are four phases in building culture in an organization," he said. "Forming, storming, norming and performing." He explained that the first two are easier because they have a built-in excitement and momentum. But the third phase is where determination really counts. That's when behavior becomes standard and resistance has been overcome. But it's what makes the payoff so good, because performance follows, and benefits accrue across the entire organization.
