A holistic view increases value

Quality is an assessment applied broadly. It may be difficult to define but you know when you see it. We all describe things as being of quality or lacking it. For example, a software product’s quality can be viewed through multiple lenses. Is the code written in a manner that executes efficiently and/or is it readable and easy to maintain? What about the install process or the basic user experience? Are updates routinely provided and are they reliable? Can it be considered a quality product if any one of these areas (and others) lacks observable quality? We can extend this view of quality to physical goods regarding fit and finish, or packaging, or shipping or user manuals/directions, or customer support, etc., etc. Quality, like obscenity, is observable and may be assessed along a spectrum.

Organizational quality stems from an awareness that what is done has a yin yang relationship with the environment in which it is done. The products/services produced by an organization and how the organization produces them are interconnected. The conditions people operate in and the output they produce each have unique properties to describe and consider in determining a quality appraisal. A wide spectrum of variables affect organizational culture. For example, are the people compensated fairly for the scope of responsibility they are assigned?, does staff feel safe among their co-workers?, are employees empowered to make decisions?, do employees receive feedback?, are the values of management known and embraced by people throughout the organization?, anticipating future liquidity events, have values been embedded in the articles of incorporation?, do agreements with external entities codify the values of the organization (if values exist and are known)?. The list goes on and on of the various dimensions of quality for an organization.

A frequent refrain heard from many entrepreneurs is they don’t have the time to focus on the culture of their startup. They are too busy validating their business model, building an MVP, chasing revenue, or fundraising. How can they be expected to also pay attention to their values and the overall quality of the company they are building? Organizational quality, like product quality, is an expression of how they want the outside world to view the fruits of their labor.

Organizational culture is the manifestation of the quality bar set by the founders and/or senior executives. In short, it encompasses a distinct aggregate collection of values, beliefs, and behaviors unique to the collection of people who comprise that particular business or organizational entity. As with product quality, culture reflects the time, attention and investment applied to its formation. In other words, “you get what you pay for”. Leadership makes decisions everyday regarding the quality of products and services. They decide how they want their stakeholders to view the output of their decisions. They also decide to invest energy or not into forming and the ongoing nurturing of a culture. Their attention to detail determines if they end up with one people feel connected to and want to be a part of or not or that customers and other stakeholders ultimately value.

Every organization has a culture. Most evolve organically without specific intent. Too often some aspect of what is considered a quality metric fails to meet acceptable standards e.g. the workplace may be considered toxic and less productive than it otherwise could be or customer perception of the organization’s culture is unfavorable impacting sales or loyalty. Paying attention to the quality of the culture is a similar investment in time and attention as a focus on the quality of products and services.

Organizations that want to be viable for extended periods of time understand the holistic nature of quality as it applies to all outputs and outcomes generated by the organization – products/services, external agreements, HR/people policies, and overall governance. It’s easier to do something right from the start than it is to fix something broken down the road. Startup founders would be wise to invest appropriate attention to the culture as it forms or risk ending up with one that costs them more later.

How do you want the world to think about the quality of your organization?

Tools/methodologies such as the COR Culture Canvas could be a good starting point - two variations are available: a single sheet and a survey type approach. Also, one of a variety of books and articles appearing almost daily can help provide guidance. Let us know if you want to learn more about COR and/or to engage with COR leadership to help your organization.