Building Success Through People

Ever wondered why some companies seem to thrive while others struggle with employee engagement? At Kaihen, we hear this question all the time from to utility CEO’s across Canada. The one topic that always comes up: corporate culture. But what does culture really mean and why does it matter? Culture is critically important but it’s often vague and hard to define. It’s even more difficult to implement and measure. So how do you make sure your utility’s culture works for you?

Corporate Culture - What is it and why is it important?

Think of corporate culture as the personality of your utility. It goes beyond mission statements to provide directions on how you and your colleagues behave day to day. For many of our clients, this means focusing on safety, customer service, collaboration, community and innovation. But culture is more than just a set of value statements, staff BBQs, townhalls and social committees. Culture is how employees lead everyday interactions. This is why implementing a company culture is complex and challenging. A utility without proper organizational culture will adopt detrimental behaviours that result in outcomes that are the opposite of what is desired: high employee turnover, low employee engagement, productivity issues, and damaged community perceptions and support.   Another important consideration is what strategic initiatives are happening at the company.  For example, if the organization is merging or acquiring other companies, then defining and implementing the new culture is even more critical ensuring the newly formed organization is aligned and productive.

How do you implement it?

So, how do you build the right culture?

1. Define what the target culture is for your organization: this should be defined as what the priority outcome objectives are for the organization.

2. Align your culture with those goals: whether it’s staff retention, improved productivity, and customer satisfaction; the focus should be on what the organization wants to achieve. For example, while at Hydro One the strategic priorities included productivity and high employee engagement. With these outcomes in mind, the organization implemented promotion from within; manager-once-removed mentoring and ongoing leadership training for middle management. All cultural initiatives that supported the strategic ambitions.

3. Ensure the right leaders are in place: Department leaders are the ones that will have the most influence on setting culture within their teams. Therefore, make sure that your leaders have the right emotional intelligence, philosophies, skills and support to positively inspire their teams. For example, I have seen our clients put a greater emphasis on leadership and people skills versus technical experience when making selection decisions for higher level roles.

How do you measure success?

How do you know if your culture is working? Culture can be difficult to measure. Employee Engagement or satisfaction surveys are good indicators and can be used as a baseline to measure improvement programs year after year. If your utility considers Culture as a means to an end, it makes more sense to look at the outcomes. Are leadership roles being filled from within? Are employees looking to other LDCs for roles that better align with their career ambitions? Is there high employee turnover? If turnover is high, it’s time to dig deeper.

Advice

In the end, culture starts at the top. The CEO sets the example, not through words but through actions. For the leadership in the organization, how they approach their own teams will be more influenced through their own observations of the CEO, rather than what is documented in value statements. When hiring, focus on a leader’s managerial approach, emotional intelligence and people skills. And always keep your eye on the results. If you’re not seeing the outcomes you want, it may be time to rethink your approach. Review your organizational plans to make sure you have the right people in the right roles.

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Mark Fukuzawa has extensive experience as a utility executive and a senior consultant.   Mark leads Kaihen’s Organization and People Practice which specializes in aligning organizations’ people and structures to achieve lasting success.  Our Organization and People services encompass four key areas: Succession Planning, Organization Design, Leadership Effectiveness, and Executive Search.  Leveraging deep expertise in the Canadian energy and utilities’ sector, we ensure that your organization is well-prepared to achieve targeted change to meet the challenges of a fast-evolving industry.