Legacy Leadership, Legacy Cultures, and Corporate Profits

Jay Newman, PhD, Founding Partner, Culture By Choice

Whenever we start talking about leadership and culture there are those that say “but our company is only interested in the next quarterly P & L!” How do you argue with the money first mentality when the very existence of any company is directly related to the revenues they generate and the profits they make? And being focused on the next quarterly P & L is the essence of survival and success for every company. But, what if we can show you that there is a better way to increase the probability that your next quarterly P & L will be a favorable one? What if a different focal point is actually better for your financial bottom line?

Here’s what we know from the research being done all over the world. We have learned that opperating based on core values and principles gives a company a real purpose for doing business. And, having a purpose makes everything you do more appealing to those who will buy your goods and services. “What do we mean by purpose? Ernst & Young’s Beacon Institute defines purpose as ‘an aspirational reason for being that is grounded in humanity and inspires action’. According to this definition, companies that behave with purpose can create  more value for their shareholders and society in the long-term than by simply pursuing profits or narrow self-interest.” (Valerie Keller and Diane Verde Nieto, May 24, 2017, Companies are Finding that Being Principled Pays Off, World Economic Forum)

So does this really play out in the real world of business? Here’s a very specific example. The Canadian company, WhiteWater (an amusement park water slide and wave pool manufacturer and installer), believes that principles are everything and they hire and train peple based on their values and principles. WaterWater CEO, Geoff Chutter, puts his values to work on a daily basis and that has gotten him recognized as the 2019 Entrepreneur of the Year. He achieved this by converting his lone water-based theme park in British Columbia in to an international corporation that builds these water parks all over the world. Now a $200 million company, Chutter explains his success like this.

“It’s about getting the right people on the bus, sitting in the right seats, and valuing attitude over skill set. We’re taught to hire for skill set, but first and foremost you should hire for mindset. People that are positive, who have a ‘can-do’ attitude, a great work ethic. You can teach somebody skills, but you can’t teach mindset.”

It’s also important, he says, to be an approachable leader who values employees. “I’ve been accused of being too soft-hearted and loyal to employees, but the people side of things is so important. When you spend even a little bit of time understanding employees’ lives and what many of them have gone through to get where they are, you end up developing a deep sense of respect and loyalty to them.”

At Culture By Choice we have direct experience with Principled Leaders who have made their businesses extremely profitable. Yes they focus on the quarterly P & Ls but their daily efforts focus more on people, integrity, dedication, commitment, and quality of products and services. That is how they’ve become so profitable. One of these companies has grown from a $50 million a year revenue company to a nearly $500 million revenue company in 10 years. This phenomenal growth has been fueled by being more concerned about the quality of their culture than the financial bottom line. The quality of their culture is fueled by their values. Those values are adhered to. Those values impact every decision made, no matter how significant or insignificant that decision appears to be.