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Club Culture: The Winds of Change

Culture is the glue that holds societies together. It unites; it motivates; it enables. However, because culture is pervasive and shared, we often fail to observe its role in our lives.

Signs of culture surround us in a variety of forms: work, art, leisure. Yet our reaction to it is often taken for granted, almost subliminal. But make no mistake, culture profoundly shapes and defines us.

If we take culture from the societal to organizational level, the influence is no less profound. Corporate culture is now a common phrase in the manager’s lexicon. It points to a range of characteristics—things like values, traditions, behaviors and attitudes—that ladder up to what ultimately constitutes identity.

The Big Three: Leadership, Strategy and Culture

 We often admire corporate leaders. Some have larger-than-life personalities; others attract talent like magnets; and then there are those, like Elon Musk and the late Steve Jobs, who have captured the entrepreneurial imagination and tested the limits of innovation.

At the same time, we recognize the power of strong business strategies that have driven amazing records of growth and expansion. Starbucks took a commodity product, coffee, and transformed it into a rewarding everyday experience. Amazon first sold books on the Internet, but now have long-term relationships—think Prime—with more than 100 million customers. Its voice-search technology has entire households engaged in daily conversations with Alexa that tighten the circle of data, desire and delivery.

Less apparent, but just as important, is the role of culture. If organizational leaders embody effectiveness and if strategic planning charts the course, then it is culture that is both the foundation and catalyst for the ultimate achievement of success and its continuation into the future.

The Contours of Culture

A framework used in organizational design identifies group culture and individual leadership styles by two dimensions:

1.       How people interact – emphasizing independence and interdependence

2.       How people respond to change – those seeking to capture the advantages of change through flexibility to those seeking to avoid its disadvantages by reliance on authority or assurances of safety.

This taxonomy provides us with eight different types of corporate culture, with no single culture being optimal: enjoyment, learning, purpose, caring, order, safety, authority and results (see sidebar 1). Here are some recognizable profiles.

Huawei, a Chinese firm, is one of the largest telecommunications equipment manufacturers in the world. In this fast-paced and often disruptive field of technology it takes a competitive spirit that, in the case of Huawei, has organized around its founder and CEO, Ren Zhengfei. His corporate culture places a premium on strong authority and clarity of purpose. Says Zhengfei, “We have a ‘wolf’ spirit in our company. In the battle with lions, wolves have terrifying abilities. With a strong desire to win and no fear of losing, they stick to the goal firmly, making the lions exhausted in every possible way.”

Disney provides a very different, but no less effective corporate culture. It would locate in the quadrant opposite of Huawei and exemplifies a culture that embodies caring. Disney CEO Bob Iger explains it this way: “It is incredibly important to be open and accessible and treat people fairly and look them in the eye and tell them what is on your mind.”

Corporate culture can strengthen or undermine a range of workforce issues. It attracts employees that are the right fit and are aligned with both management styles and business objectives. However, to accomplish these aims, corporate culture should be clearly defined and well communicated. All these things increase the likelihood that newly hired employees will find a workplace culture that is energizing and motivating. Such a work environment also increases the likelihood of job satisfaction and retention. Simply put, the right culture drives employee engagement.

 A Closer Look at Club Culture

Set into the club context, culture is what makes your club unique. For instance, The Union League of Chicago, which was profiled in the fall 2014 issue of Club Trends, has a culture that values members’ engagement in public life. The club—its programs, its committees and human resources—reveals a commitment to understanding and advancing public policy issues and community life. The Union League of Chicago can trace its origins back to the Civil War era and a time when ideals about national unity and constructive political dialogue faced existential threats. The club’s fidelity to these ideals serves it well in the present era and is evidence of how a culture elevated by mission and vision can contribute to organizational longevity.

The San Diego Yacht Club (SDYC) is another example of how a thriving club culture celebrates past achievements as it points to those anticipated in the future. This club was profiled in the winter 2017 issue of Club Trends, and, like The Union League of Chicago, has a history of accomplishment that extends back to the 19th century. Its storied success can be attributed to the fidelity with which it has honored its traditions and passed them on to new generations of members. As a result, many of the world’s best sailors and yachtsmen have had their roots in this one club. Members at SDYC play this passion forward.

In focus groups and surveys, the McMahon Group frequently probes clubs to uncover cultural drivers: the club’s mission and primary purpose. It also works through the strategic planning process with club leaders to close the gap between a club’s ideal and actual cultural context. The data collected shows that a strong club culture persistently drives satisfaction and membership value.

Members at top clubs are clear about what they are and are not. They communicate this sense of purpose and put the leadership, staff and facilities in place to create, maintain and extend this culture that they value. At the same time, club cultures must evolve and ultimately adapt to societal change and member preferences.

Clubs have sought to take myriad initiatives, improvements and innovations to better align with contemporary lifestyles and the cultural shifts. Thus, many clubs have transitioned from male-oriented golf clubs to family-centered, full-service country clubs. Dining and socializing at the club was once synonymous with formality. Now that atmosphere has been considerably relaxed with a broader range of activities and options that better reflect members’ needs and preferences. Similarly styled transformations—powered by trends related to health, technology and the role of women—have taken place across the private club industry.

Balancing Continuity and Change    

A club culture that is both unique and valuable, will draw in new members, and retain existing members and increase their utilization of the club. It is this link between culture and performance that makes culture a focus area for club boards and managers alike.

At the operational level, it is the task of leaders and managers to both align and shape culture. This is a delicate balance of harnessing existing culture to drive necessary change and improvement. Although the engagement and reaction of members is of paramount concern, it is typically in the arena of workplace culture where success or failure gets determined.

Here are three ways to affect culture in the workplace:

1.       Understand. There is value in identifying and measuring your club’s culture. It is an invaluable guide for hiring decisions and for subsequent initiatives related to training employees, assigning them to teams, and designing the workplace environment.

2.       Communicate. Leaders have a special responsibility to communicate and interact with employees. This is done formally through assigning roles and responsibilities and holding people accountable. There is also a path for communicating cultural drivers that includes the stories that get told, the celebrations that take place and the character and tenor of day-to-day interactions.

3.       Aspire. It is important to understand legacy cultures and the degree to which they support or undermine change. It is similarly important to evaluate the buy-in of employees to the club’s mission and values and to recognize subcultures that may boost or erode morale and a sense of purpose. Leaders should create and communicate a compelling vision of the future and then provide a workplace environment that is in alignment. Even the best workplace practices cannot compensate for a lackluster environment in which the real work is done.

The Pros and Cons of Culture Styles

Culture Style

Pros

Cons

CARING

Warm, sincere, relational

Improved teamwork, engagement, communication, trust and sense of belonging

Overemphasis on consensus building may reduce exploration of options, stifle competitiveness and slow decision making

PURPOSE

Purpose driven, idealistic, tolerant

Improved appreciation for diversity, sustainability and social responsibility

Overemphasis on a long-term purpose and ideals my get in the way of practical and immediate concerns

LEARNING

Open, inventive, exploring

Improved innovation, agility and organizational learning

Overemphasis on exploration may lead to a lack of focus and an inability to exploit existing advantages

ENJOYMENT

Playful, instinctive, fun loving

Improved employee morale, engagement and creativity

Overemphasis on autonomy and engagement may lead to a lack of discipline and create possible compliance or governance issues

RESULTS

Achievement driven, goal focused

Improved execution, external focus, capability building and goal achievement

Overemphasis on achieving results may lead to communication and collaboration breakdowns and higher levels of stress and anxiety

AUTHORITY

Bold, decisive, dominant

Improved speed of decision making and responsiveness to threats or crises

Overemphasis on strong authority and bold decision making may lead to politics, conflict and a psychologically unsafe work environment

SAFETY

Realistic, careful, prepared

Improved risk management, stability and business continuity

Overemphasis on standardization and formalization may lead to bureaucracy, inflexibility and dehumanization of the work environment

ORDER

Rule abiding, respectful, cooperative

Improved operational efficiency, reduced conflict and greater civic-mindedness

Overemphasis on rules and traditions my reduce individualism, stifle creativity and limit organizational agility

Source: “The Leader’s Guide to Corporate Culture,” Harvard Business Review, January-February, 2018.

What Is Your Club’s Cultural Profile?

Although culture can be difficult to pin down, there are assessment tools that facilitate this task. This survey instrument has been used to classify organizational culture in the framework highlighted in the sidebar, “The Pros and Cons of Culture Styles.”

ON A SCALE OF 1-5, RATE HOW WELL EACH OF THESE STATEMENTS DESCRIBES YOUR CLUB

Culture Style

OUR CLUB IS FOCUSED ON:

OUR CLUB FEELS LIKE:

CARING

Warm, sincere, relational

COLLABORATION AND MUTUAL TRUST

1 2 3 4 5

A BIG FAMILY

 

1 2 34 5

PURPOSE

Purpose driven, idealistic, tolerant

COMPASSION AND TOLERANCE

 

1 2 3 4 5

AN IDEALISTIC COMMUNITY

 

1 2 3 4 5

LEARNING

Open, inventive, exploring

EXPLORATION AND CREATIVITY

 

1 2 3 4 5

A DYNAMIC PROJECT

 

1 2 3 4 5

ENJOYMENT

Playful, instinctive, fun loving

FUN AND EXCITEMENT

 

1 2 3 4 5

A CELEBRATION

 

1 2 3 4 5

RESULTS

Achievement driven, goal focused

ACHIEVMENT AND WINNING

1 2 3 4 5

A MERITOCRACY

 

1 2 3 4 5

AUTHORITY

Bold, decisive, dominant

STRENGTH AND BOLDNESS

 

1 2 3 4 5

A COMPETITIVE ARENA

 

1 2 3 4 5

SAFETY

Realistic, careful, prepared

PLANNING AND CAUTION

 

1 2 3 45

A METICULOUSLY PLANNED OPERATION

1 2 3 4 5

ORDER

Rule abiding, respectful, cooperative

STRUCTURE AND STABILITY

 

1 2 3 4 5

A SMOOTHLY RUNNING MACHINE

 

1 2 34 5

 

Watch this video!

The Eight Critical Elements of Organizational Life are summarize in this brief video:

http://ow.ly/fWvS30k7U52

Club Trends Spring 2018

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