{"id":102444,"date":"2022-09-24t12:00:30","date_gmt":"2022-09-24t16:00:30","guid":{"rendered":"\/\/www.g005e.com\/?p=102444"},"modified":"2024-08-07t23:10:31","modified_gmt":"2024-08-08t03:10:31","slug":"the-two-sides-of-the-culture-coin","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/09\/24\/the-two-sides-of-the-culture-coin\/","title":{"rendered":"the two sides of the culture coin"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-52825\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748-424x283.jpeg\" alt=\"three business colleagues arguing while seated at table\" width=\"424\" height=\"283\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748-424x283.jpeg 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748.jpeg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748.jpeg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/09\/threepeopleargue_adobestock_94203748.jpeg 648w\" sizes=\"auto, (max-width: 424px) 100vw, 424px\" \/><\/a>and how they relate to strategy.<br \/>\n<\/strong><\/p>\n<p><i>by anthony zecca<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/az21edg\/\"><i>leading from the edge<\/i><\/a><\/p>\n<p>as we focus on the leadership of accounting firms need to succeed in a future driven by seismic disruptors, we must address leadership\u2019s responsibility, and impact on creating a culture that results in an environment that motivates every single team member to their highest level of performance.<\/p>\n<blockquote><p><b>more: <\/b><a href=\"\/\/www.g005e.com\/2022\/04\/27\/four-accountability-steps-for-firm-success\/\">four accountability steps for firm success<\/a> | <a href=\"\/\/www.g005e.com\/2021\/11\/07\/how-to-build-a-standout-team\/\">how to build a standout team<\/a> | <a href=\"\/\/www.g005e.com\/2021\/08\/12\/the-road-map-to-becoming-a-high-performing-firm\/\">five keys to becoming a high-performing firm<\/a> | <a href=\"\/\/www.g005e.com\/2021\/05\/02\/assessing-your-firm\/\">assessing your firm<\/a> | <a href=\"\/\/www.g005e.com\/2021\/05\/13\/how-to-assess-your-leadership\/\">the 4 traits of great cpa leaders<\/a> | <a href=\"\/\/www.g005e.com\/2021\/03\/28\/why-leaders-must-ensure-clarity\/\">why leaders must ensure clarity<\/a> | <a href=\"\/\/www.g005e.com\/2021\/02\/13\/incremental-vs-exceptional-success\/\">incremental vs. exceptional success<\/a> | <a href=\"\/\/www.g005e.com\/2021\/01\/29\/do-you-lead-or-just-manage\/\">do you lead or just manage?<\/a> | <a href=\"\/\/www.g005e.com\/2021\/01\/07\/managing-vs-leading\/\">managing vs. leading<\/a> | <a href=\"\/\/www.g005e.com\/2020\/12\/11\/is-your-leadership-team-at-the-edge\/\">is your leadership team at the edge?<\/a> | <a href=\"\/\/www.g005e.com\/2020\/11\/29\/6-leadership-challenges-through-covid-and-beyond\/\">6 leadership challenges through covid and beyond<\/a> | <a href=\"\/\/www.g005e.com\/2020\/11\/05\/edge-leaders-share-7-strengths\/\">edge leaders share 7 strengths<\/a> | <a href=\"\/\/www.g005e.com\/2020\/10\/22\/leadership-must-drive-culture\/\">leadership must drive culture<\/a> | <a href=\"\/\/www.g005e.com\/2020\/10\/02\/taking-leadership-to-the-edge\/\">leading from the edge<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-49700 size-full\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2022\/09\/24\/the-two-sides-of-the-culture-coin\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>there are two great quotes that i would like to start with to frame this discussion. the first is from bryan walker (partner and managing director at ideo), who stated that \u201cculture is like the wind. it is invisible; yet its effect can be seen and felt\u201d in every single organization that exists from the family to the biggest company on the planet. the second quote is from author tanya mann: \u201cyour organization\u2019s culture is either an asset or a liability; either helping business performance or hurting it.\u201d<br \/>\n<!--more--><br \/>\nyou might be wondering why culture wasn\u2019t the first in my series of articles on leadership. the reason is simple \u2013<\/p>\n<ul>\n<li>how can you have a great culture if your firm lacks a future vision that reflects the necessary transformation to create a standout, high-performing firm coupled with the <strong>strategy<\/strong> to achieve that future vision?<\/li>\n<li>how can you have a culture that has teamwork at its core to optimize the collective performance of every team member if there is no <strong>empowerment<\/strong> that allows every team member to flourish?<\/li>\n<li>how can you have a culture that is focused on results and commitment to goals if there is no <strong>accountability<\/strong> for decisions being made and actions being taken?<\/li>\n<\/ul>\n<p>now that this series has covered strategy, empowerment and accountability, the foundation is there to have a meaningful discussion surrounding culture and leadership\u2019s role in creating and driving the firm\u2019s culture.<\/p>\n<p>let\u2019s define culture and the leader\u2019s impact. author mark vickers provides a simple, short and clear definition: \u201cculture is defined as the leader\u2019s ability to change and grow.\u201d this definition clearly puts the responsibility for a firm\u2019s culture squarely on the shoulders of the firm leader and leadership team. other definitions of culture focus more on the behavior of individuals throughout the firm reflected in how they behave and the meaning that they attach to those behaviors.<\/p>\n<p>when i think about firm culture and the above definitions, i would suggest that there are two sides to the culture coin. one side is the leader\u2019s actions and communications that define the culture and the other side is how is that culture is reflected in the behaviors of every person in the firm. when both are aligned, culture is alive and well in the firm. when there is a disconnect between the culture that the leader is working to create and the day-to-day behaviors of everyone, culture ends up just being words on a poster.<\/p>\n<p>as a managing partner of a large nyc firm stated, \u201cthe leader has a great influence over the firm in terms of direction, tone and the culture that is created.\u201d too many leaders are not able to clearly see the culture that actually exists in their firm. what they see are their own myths surrounding culture using words like entrepreneurial, one-team, client-focused, empowered \u2013 words that only create a picture without any reality because the leader\u2019s actions and communications are too often at odds with the culture that he\/she imagines. too many leaders fail to make the connection between talking about the culture of the firm and their actions and communications that in many cases are in direct conflict with how he\/she describes culture.<\/p>\n<p>edge leaders understand the direct link between culture and firm\/individual performance and will not accept actions and decisions that are not aligned with the culture of the firm regardless of who the offender might be. they understand that the firm\u2019s culture has a significant impact on how the firm services its clients. a culture of personal responsibility within a client-centered focus will positively affect the firm\u2019s clients and their level of satisfaction with the firm. edge leaders accept the responsibility to lead from the front as it relates to culture \u2013 showing the way to the entire firm. edge leaders understand that culture can make extraordinary things happen when the culture is based on empowerment and accountability driving exceptional strategy, exceptional performance and finally, exceptional talent. edge leaders fully understand what tanya mann stated \u2013 the firm\u2019s actual culture will either be an asset or liability, either turbocharging the firm\u2019s performance at every level or holding it back like an anchor holds a boat in place.<\/p>\n<p>too many leaders pay lip service to culture and allow behavior to drive culture, which always results in a culture that no one really believes in or acts within. when leaders allow behaviors that are inconsistent with what they communicate as the culture of the firm, not only does the leader lose the confidence and trust of the rest of the firm, but it creates an environment where the stated culture can never exist. when it is behavior that drives culture and not the leadership of the firm, a culture of silos and me-first becomes the norm, and everyone loses \u2013 the leader, the clients, the team, the partners and the firm.<\/p>\n<p>let\u2019s examine a bit more the connection between culture and performance. culture defines the way things are supposed to work. more specifically, culture is reflected in the core values, vision, beliefs, behaviors and reward systems that influence to a great degree how people act and interact on a daily basis. performance reflects how individuals actually work and behave. more than any other factor, culture drives business success by creating and leading within an environment based on shared values, shared beliefs and shared commitment to the firm\u2019s strategy. the culture of the firm is what drives individual behavior. edge leaders understand the close connection between culture and performance and therefore business success.<\/p>\n<p>as noted above, culture is not only created by leadership but it is driven by leadership and becomes embedded in the firm through the actions and communications of leadership. this includes being totally transparent on strategy, empowering and trusting team members to make the right decisions, and balanced accountability based on results achieved.<\/p>\n<p>the critical impact of culture is on display when things go wrong. think about mergers, which are so prevalent in accounting firms today. every article you read will tell you that a common culture between two firms is the most critical aspect that will drive success in a merger.<\/p>\n<p>just think about this example. firm a is a $75 million firm and firm b, which is a $20 million firm, has merged into firm a. the financial side of the transaction is good but there is a major disconnect in each firm\u2019s culture. firm a is totally client-centric and value-based in its approach to services and fees while firm b is like many firms \u2013 let\u2019s get this client at whatever discount we need and then we will build on that. those two cultures will never align because one is based on quality and value of services delivered and the other is based simply on commodity pricing. paraphrasing what michael porter stated, no firm can be successful if its core competitive advantage is based on high quality and value while also being the low-cost provider \u2013 has never and will never work. the culture of a firm that is value-based and client-centric will never mesh and integrate with a culture that is based on being the low-cost provider.<\/p>\n<p>building and maintaining a strong culture is leadership\u2019s #1 responsibility and to do so, there are several questions that need to be answered:<\/p>\n<ul>\n<li>does the firm culture reflect a high-impact client experience based on a firm that is client-centric and organized based on the client?<\/li>\n<li>does the firm culture reflect a high-impact employee experience that results in all employees loving what they do and the firm they do it for?<\/li>\n<li>does firm leadership ensure that the first two bullets are delivered consistently throughout every corner and aspect of the firm?<\/li>\n<li>does the firm culture reflect trust in all professionals to make decisions appropriately based on empowerment coupled with a model of positive accountability?<\/li>\n<li>does the firm\u2019s performance management and compensation model (partners included) align with the firm culture and drive the firm to the level of a standout, high-performing firm?<\/li>\n<li>are leadership and the firm\u2019s partners willing to invest in a culture of continuous learning for everyone in the firm even if that reduces billable hours?<\/li>\n<li>is leadership willing and committed to moving away from billable hours as an indicator of profitability to metrics such as net promoter score and other client-centric measures of how the firm is servicing its clients?<\/li>\n<li>does firm leadership consistently reflect the firm\u2019s culture in all actions and communications?<\/li>\n<li>is there an effective and consistent measure of culture?<\/li>\n<li>does the firm culture create a brand that optimizes the firm\u2019s ability to attract, hire and retain top talent?<\/li>\n<\/ul>\n<p>answering the above questions will provide the firm leader with a great assessment of where the firm\u2019s culture is today versus the culture that leadership talks about. to the extent any of the above questions are not an absolute yes, it creates the roadmap for the firm leader to close the gap between the desired culture and the actual culture in the firm.<\/p>\n<p>the final point about leadership and culture is whose responsibility is it to create and enforce the firm\u2019s culture and what is the strong connection between culture and strategy. the bottom line is that culture is not something that can be delegated to a committee or to the executive committee or to the partner group \u2013 it is the sole and most critical priority and responsibility of the firm\u2019s leader. it is the firm leader who above all others should understand the firm\u2019s cultural values and long-term strategic roadmap and how the intersection and alignment of both have the biggest impact on firm performance.<\/p>\n<p>there are four actions that the firm leader needs to consistently take to fulfill their responsibility to clients, partners and the entire firm as it relates to culture:<\/p>\n<p><a href=\"\/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-102449\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture-424x386.png\" alt=\"illustration\" width=\"486\" height=\"442\" srcset=\"\/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture-424x386.png 424w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture-300x273.png 300w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture-600x546.png 600w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/zecca_buildingculture.png 612w\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" \/><\/a><\/p>\n<ul>\n<li>clearly <strong>communicate<\/strong> the desired culture throughout the firm.<\/li>\n<li><strong>evaluate<\/strong> what the actual culture in the firm reflects against the desired and intended culture based on the answers to the questions outlined above.<\/li>\n<li><strong>monitor<\/strong> through various empirical tools the actions and attitudes of partners, staff and administrative personnel to evaluate if there are significant gaps between the actions and attitudes that are reflective of the desired culture and the actions and attitudes actually occurring.<\/li>\n<li><strong>adjust and align<\/strong> where there are gaps between the culturally desired attitudes and actions and the actual observed attitudes and actions to close the gap.<\/li>\n<\/ul>\n<p>finally, what is the relationship between culture and strategy?<\/p>\n<ul>\n<li>strategy, good or bad, drives the focus and direction of the firm while culture is the emotional, organic universe in which the firm\u2019s strategy succeeds or fails \u2013 lives or dies.<\/li>\n<li>strategy creates the firm\u2019s performance story while culture tells the firm\u2019s emotional story rooted in mission, vision, core values and clear expectations.<\/li>\n<li>strategy defines the firm\u2019s intent while culture defines the firm\u2019s heartbeat.<\/li>\n<li>strategy lays down the rules for playing the game while culture defines how the game will be played.<\/li>\n<li>strategy is the imperative for differentiation while a strong, well understood and committed culture is what create a strong competitive advantage.<\/li>\n<li>culture is built or eroded every single day.<\/li>\n<li>while strategy defines the roadmap to the future, culture defines how successful execution of the strategy will be.<\/li>\n<\/ul>\n<p>the bottom line is that when culture embraces strategy and the two are aligned, execution is strong and sustainable and therefore, firm performance is strong.<\/p>\n<p>i would be interested in your thinking about the above. does it make sense? if not, why not?<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>and how they relate to strategy.<\/strong><br \/>\n<a href=\"\/\/www.g005e.com\/2022\/09\/24\/the-two-sides-of-the-culture-coin\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-102507\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm.png\" alt=\"\" width=\"250\" height=\"84\" srcset=\"\/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm.png 1312w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm-300x101.png 300w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm-600x201.png 600w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm-424x142.png 424w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm-849x285.png 849w, \/\/www.g005e.com\/wp-content\/uploads\/2022\/09\/screen-shot-2022-09-25-at-8.58.34-pm-768x258.png 768w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/><\/a><br \/>\n<i>by anthony zecca<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/az21edg\/\"><i>leading from the edge<\/i><\/a><\/p>\n","protected":false},"author":3698,"featured_media":89171,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2259,3120,3002],"tags":[],"class_list":["post-102444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadership","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>the two sides of 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