In a recent post I linked to my piece on the psychological challenges of culture change published in Dialogue Review.
One of the items left on the cutting room floor and not published with the article was an interview with an Elliott Davis Decosimo client, David White, then-President of Shealy Electrical Wholesalers. David was kind enough to respond to some questions about the challenges he experienced with Shealy’s own culture change. Since I found his responses insightful, I’m posting the interview in two parts so that others can read his experiences. Part I was posted on Monday; this is Part II.
How did you as a leader work through those challenges? What decisions did you make?
We are working through them now. Trust is built over time and through positive experiences.
As a group we defined roles, explicit responsibilities, and accompanying expectations for each position. I have communicated these throughout the organization and built an executive compensation plan to support the company objectives.
As a leader I look for opportunities for our leadership team to spend time together in teams creating strategy, developing innovative solutions to problems, and supporting customers.
Did the culture change your company experienced improve your company’s position?
It has improved our company’s position. Our challenge has always been to provide a unique, meaningful set of solutions and services to create a great customer experience. In earlier days our customers had a generalist from Shealy who tried to manage the entire customer relationship. While that generalist philosophy has its benefits it also has its risks.
The risk we tried to eliminate was of one person “owning” the customer relationship.
Today we have an account manager who acts as a quarterback and directs a team of specialists to engage with the customer at the appropriate place and time. The customer benefits by having product and application expertise more readily available. We benefit by having a deeper, broader relationship with the customer through an array of Shealy contacts which leads (we hope) to better customer retention, more share, and better margins.
If you were to do it all over again, what might you do differently?
I would try to push accountability deeper into the organization faster. As we grew I maintained too much responsibility for developing strategy, defining objectives, and managing outcomes. In order to identify and develop more leaders I needed to let them play the game and not over coach.
What one or two primary principles of managing culture change would you offer a CEO whose company is experiencing significant culture change?
Communicate frequently – be as transparent as possible with information. It’s better for people to know than to “guess” or “think” they know.
Communicate more than just the “what” or the “how” – spend time communicating the “why”. When implementing change or driving culture it’s helpful to have those affected by change (or who feel that they are having change imposed on them) to understand the “why”.