Why Culture Matters At Work

Organizations can actively create strong cultural environments that represent their values and make their company a great place for employees and customers by focusing on these attributes.

 

 

By Jacob Morgan

 

Author and futurist@JacobM

 

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CREDIT: Getty Images

 

 

Out of all the employees and business leaders whom I have interviewed over the years, the vast majority of them have always told me that culture is what they care about most. Unlike the physical and technological environments, cultural environment isn't something that you can see, taste, touch, or breath in. This is the only environment that you feel. That feeling is the pit in your stomach when you don't want to go to work or the excitement and butterflies you get from wanting to go to work. Simply put, the cultural environment is the vibe of your organization and the actions that are taken to create that vibe or feeling.

The culture of the organization determines how employees are treated, the products or services that are created, the partnerships that are established, and even how employees actually get their jobs done. What's fascinating about culture, though, is that it exists regardless of whether the organization realizes it or decides to create it. A technological environment doesn't exist without actual things that the organization deploys. A physical environment doesn't exist unless the organization creates or designates one. But the corporate culture is like air--it's around all the employees who work there even if they aren't always aware of it. That is what it's so crucial to actually create and design a culture instead of just letting it exist.               

So what does the cultural environment actually look like? There are 10 attributes that organization must focus on to create a CELEBRATED culture:

•    Company is viewed positively. Just like when you bring home a significant other to meet the family for the first time and want to get their approval, employees want to feel good about the company they work for. Employees should be proud to work for an organization because it has a good reputation in the industry and in the community.

•    Everyone feels valued. Employees want to feel valued at work, which covers a lot of categories. It means that their work is appreciated, their presence is noticed, their ideas are listened to, and they are compensated appropriately for the work they put in.

•    Legitimate sense of purpose. When employees have a real sense of purpose, they feel connected to the organization and are more likely to put in their best work because they want to, not just because they need to. Employees and employers need to work together to develop a sense of purpose that motivates everyone to do their best.

•    Employees feel like they're part of a team. Work is a team sport, and the best organizations allow their employees to be on a number of different teams. It could be geographically or within a department or a group of people tasked with solving a certain problem. Teams are dynamic and fluid and much more than can just be put on an organizational chart.

•    Believes in diversity and inclusion. Diverse organizations bring together people from all kinds of backgrounds, religions, races, sexual orientations, and generations and mixes them to work well together. In an inclusive environment, employees are free to be themselves and share their unique points of view.

•    Referrals come from employees. When we find something good, no matter if it's a restaurant or a movie, we naturally want to share it with others. The same should be true of the workplace--if it's a good place to work, employees should naturally want to share it with others and refer their classmates, friends, and family to work there as well.

•    Ability to learn new things and given resources to do so and advance. One of the worst feelings for an employee is that they are stuck in their job with nothing new to learn and nowhere to go. Development programs, training, and new technology can encourage employees to learn something new and keep them engaged and moving forward.

•    Treats employees fairly. Sticky situations may arise at work, but the best organizations treat their employees fairly. That means there aren't biases towards certain ideas or types of people and that putting in real effort gets noticed by people who matter.

•    Executives and managers are coaches and mentors. The days of leaders sitting at the top of the organization and looking down on employees are long gone. Today, executives and managers are on the ground, interacting with employees to encourage them and coach them through their jobs and careers.

•    Dedicated to employee health and wellness. Employees can't focus at work if they aren't taking care of their physical and mental health. Forward-thinking organizations realize that wellness is connected to job performance and provide ways for employees to improve their health at work and at home.

By focusing on these elements, organizations can actively create strong cultural environments that represent their values and make their company a great place for employees and customers.

Ready or not, digitalization on the way for shipping

Hugh R. Morley, Senior Editor | Dec 30, 2017 8:00AM EST

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The container shipping industry is embracing technology, hoping for gains in transparency, cost-savings, and efficiency. Photo credit: Shutterstock.

The container shipping industry, widely seen as slow to embrace technology, could be on the verge of a year of significant advance.

Driven by hundreds of millions of dollars of investment in new innovations, an urgent need in the industry to trim costs, and growing demand among shippers for greater efficiency, speed and transparency, the industry appears ready to put digital technology at the heart of many of its processes.

Blockchain, the Internet of Things (IoT), and artificial intelligence (AI) are some of the technologies that have in recent months moved from being newcomer oddities to ideas that are increasingly discussed in terms of having potentially transformative impacts on the industry. Online marketplaces, which have been around in different forms — largely without success — for more than two decades have also attracted a second look. 

Dozens of startups have emerged in recent years aiming to transform the maritime industry, steered by founders who see the industry as hidebound and technologically lagging, with some companies still using telephone, fax, and e-mail to do business.

More than $500 million in venture capital and other investment has poured into the startups in the past five years, according to a Journal of Commerce analysis of investments documented in Crunchbase. And some of the companies now have had enough to time show what they can do, or can’t, said Gordon Downes, CEO of the New York Shipping Exchange, a marketplace that uses a system of contracts to tackle the problem of carriers rolling cargo and shippers who fail to send the volume of freight that they committed to sending.

“There is still a lot of hype around technology in our industry today,” Downes said. “I think 2018 will be the year we see which technologies actually deliver value to the industry, and which don’t.”

Downes is confident that his own business, which launched a marketplace in the summer, will take hold in 2018. He says that having moved thousands of containers so far, the site has seen a more than 99 percent fulfillment rate. In other words, less than 1 percent of cargo was rolled by the carrier, and left at the dock, or never arrived there because the shipper sent less than the volume it committed to send.

On average, only 76 percent of shipments industrywide are completed as planned, he said. After operating for several months, he said, his company has “hard data that really proves both parties are actually happy to make and honor commitments when the conditions are fair and transparent.”

The shake-out cited by Downes could be most severe in the marketplace sector, where more than a dozen companies vie to provide an easy online platform through which shippers, freight forwarders and others can book freight onto a ship, and secure logistics services. Israel-based Freightos has secured venture capital funding of nearly $60 million. However, others are far less well-funded, and in 2017 the startup Haven — once a marketplace — opted to focus instead on developing a transport management system.

Other technologies appear to offer more clearly defined benefits that are more integral to the efficiency of the supply chain. Technology that provides visibility, or the ability of shippers and service providers to see where cargo is in real time, gained much attention in 2017, as did technology to track the whereabouts of containers, chassis, and other equipment. That will likely continue as the technology get better and cheaper.

Number crunching, in the form of big data powered by artificial intelligence and machine learning, is also seen by some industry players as key to the future. ClearMetal, with $12 million in venture capital backing, provides software to its customers that enables them to better organize data held internally and to forecast the progress of cargo — right down to an individual box — through the supply chain. That knowledge enables the user to better make decisions about resource allocation, preparation for the arrival of cargo, and how to use carrier space more efficiently.

Haven CEO Matt Tillman said that while freight forwarders and logistics providers have until now adopted technology, they “haven't forced their shippers to do the same.

“We'll see that change in 2018, if customers expect to continue receiving great customer service,” he said. “Shippers of low-margin, high-volume merchandise will continue to get squeezed and will turn to modern technology to prevent logistics destroying what little margin remains.”

Meanwhile, San Francisco-based Flexport, perhaps the best-funded of the new wave of startups, is likely to continue its effort in 2018 to move beyond its digital roots into the non-digital sector. With more than $200 million in venture capital — just over half of it secured in the fall — the company has rented warehouses near Los Angeles and Hong Kong, and is moving into trade financing via a partnership with new backer Wells Fargo Strategic Capital.

Andy Barrons, senior vice president and chief strategy officer for Navis, which specializes in technology solutions for the marine terminal industry, said that with the wave of industry consolidation and restructuring activity on the wane, the industry will start focusing on “tools and technology” to support business plans.

The new alliances, and their increased operational complexity, will require smart technology to help manage them, said Barrons, whose company supplies software that helps manage and coordinate the activities of a port terminal. Terminal operators want “centralization and consistency” in operations, and that requires technology that can communicate with numerous parts of the enterprise, he said.

Barrons pointed to a survey of 200 maritime industry executives that the company completed in June in which respondents on average said supply chain processes could be improved by 50 to 60 percent, if the industry updated its IT systems and shared more data.

“There’s a good understanding of the problem and solution and many believe that change is coming,” he said, noting that over half those surveyed said that the “industry mindset” was one of the biggest roadblocks to accepting technology. “The good news is nearly half say their companies are investing in new technologies or increasing their investments.”

“In 2018, I expect more focus on using cloud technology” to help players along the supply chain support each other,” he added. “This will require greater focus on planning collaboration and data sharing, knowing not just who and what, but where are my shipments, when will they arrive, and what’s the next step in the chain.”

This year may also determine the fate of blockchain’s importance — or lack of — to the shipping industry. The distributed ledger technology has gained industry supporters, including Maersk Line and IBM, who teamed up to study how to deploy the technology. PSA International, Pacific International Lines, JD.com, and the Port of Antwerp have all carried out tests of blockchain, and Hyundai Merchant Marine said in September that it had completed its first voyage using blockchain, from booking to container delivery. So far, however, its use has not been widespread.

“Blockchain has garnered the most attention, even in its infancy,” said Rob Maidman, director, North America, for TIM CONSULT of New York. He said the technology could prove powerful for the maritime industry, through its ability to “enable all participants in a supply chain transaction to use a single platform rather than access multiple sites as is now the case.”

Yet the technology’s progress may be limited by the threat of cyberattacks, and an inability to provide security, he said, citing the chaos reaped by a cyberattack on the Maersk Group in June.

“No other single challenge has had more impact,” he said.

Comment: Communication and collaboration key to tackling supply chain slavery

By JAMES HENDERSON . Dec 28, 2017, 5:00AM

The practice of slavery is, in theory, confined to the history books. Yet it still exists in the modern world, in a more clandestine form, throughout the supply chains of many businesses whose products we buy and use every day. The most recent Zara incident where alleged unpaid workers in Turkey were stitching pleas for help into clothes further ignites the need for more effective mechanisms to address labour conditions and regulate the landscape. The good news is that earlier this month, the International Development Secretary announced that the UK government will spend £40 million on tackling modern slavery in supply chains, with retail giants like Ikea, Tesco, John Lewis and Marks & Spencer taking part in the research.

Despite this, studies still reveal that the world is failing to meet the UN’s Sustainable Development Goals, furthering the ongoing concern of how ethical our supply chains truly are. The research, conducted by International Labour Organisation and the Walk Free Foundation, found that over 40 million people worldwide are victims of modern day slavery, and that 152 million children, between 5 and 17 years old, are in child labour.

Often a company’s boardroom and the factory handling its production are continents away from each other. The physical distance between them is widened by a distance that comes as a result of limited communication and a lack of awareness of how certain practices are handled locally. Practices like falsified factory audits and outsourced production contribute to modern slavery across companies’ supply chains. The lack of training and education across all levels can further harm a business’ ethical initiatives.

Despite the seemingly growing number of companies introducing their own fair-trading schemes and standards for ethical sourcing, it’s clear that the vast majority are still failing to do their bit.

With increased access to information and shared content online, conscious and socially aware consumers are demanding greater transparency from brands and their supply chains. Apps like Not My Style and Project Just, along with social enterprises like Fashion Revolution, are putting increasing pressure on the fashion industry’s supply chain ethics. Not My Style lets users browse through and rate brands based on how much information they have disclosed about the factory workers and labour conditions in their supply chains. Consequently, ASOS’ entire supply base has been revealed through this rating app, as opposed to FCUK’s, who refused to share any data. Project Just works in a similar way, rating brands on how they report human rights and environmental issues, and supplying browsers with a guide to which ethical brands they can shop from. The snowballing consumer activism is putting pressure on retailers to first question their own supply chain ethics, and then consider what they could do to address any existing issues.

We need to talk

In today’s connected age of tech and social media, it seems we’ve forgotten how to truly communicate. The sheer act of talking and facilitating these discussions could be the key to eradicating slavery in the modern world.

Factory workers often hold back from voicing their grievances, fearing that their statements might be met by unjust retribution. It is in the hands of factories to enable trustworthy and effective methods for sharing concerns and complaints. Product design and procurement specialist, Matrix, worked with high street retailers and NGOs to launch MatrixChat; a new worker welfare service, via the Chinese messenger app WeChat. MatrixChat is set to change the consumer goods industries for the better, as it allows factory staff to log quality of work-life statistics so that factory managers, intermediaries and buyers can focus on improving the working lives of their employees.

Another way to facilitate the honest sharing of grievances is to supply workers with a mobile hotline and online surveys, which can additionally provide a direct route for worker voice all the way from the factory floor to the brand’s headquarters. Of course, the mechanics of these processes would also need to be considered. Matrix, for example, helped to install a wireless internet connection in its core factories’ communal areas, so that people could access the MatrixChat service without incurring costs from their mobile providers.

These examples illustrate necessary, cheap and simple steps toward bridging the gap between brands and the people making their goods, and will help to combat the problem of often falsified factory audits. What could also have a significant impact on eliminating unfair working conditions is if businesses committed to going the extra mile and to making irregular visits to their suppliers, in order to check working conditions throughout the year and not just around factory audits. These are small but effective steps in opening up the channels of trustworthy communication in the supply chain.

When the tools to talk are there, how can businesses truly embed ethical initiatives in their corporate cultures and therefore prolong their lifespan?

Educating and training everyone, from retail buyers to factory managers and workers, in CSR is essential. Online platforms can supply access to information about core processes, such as regulation changes and the lifecycles of the products that workers have helped create. Partnering with local institutions and NGOs in supporting migrant workers to settle in, introducing programmes for working parents, as well as providing training on quality management and leadership are additional steps that companies should take in order to inspire culture and boost the productivity of a happy and stable workforce. All stakeholders need to have a clear overarching vision and understanding of the importance of such initiatives and their possible effect.

Theoretically, all businesses should exercise due diligence in their supply chains, but when that has been foregone, raising awareness of an issue and its importance must be a starting point. Collaboration and communication, intertwined with innovation and technology, could be key to adopting responsible business practices and processes. The outcome of these would positively impact a business’ supply chain, eliminating the risk of modern slavery incidences. Maybe someday modern slavery could be just a page in a history textbook.

In 2017, Walmart proved it's still the undisputed king of retail

• Dennis Green
 
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• Dec. 29, 2017, 10:31 AM
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Walmart proved it's still the one to beat in retail. AP/Gunnar Rathbun

• Walmart kicked its e-commerce initiatives into high gear in 2017.
• It has maintained its dominance in brick and mortar while becoming a real competitor online. 
• For those reasons, we're saying it's the most impressive retailer of 2017.

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Walmart entered 2017 as something of an underdog.

It's a position the retail giant is not used to finding itself in. After all, how can a company with nearly $500 billion in annual revenue ever be considered anything but the incumbent?

But analysts, consumers, and pundits all realize that online shopping — an area where Amazon dominates — is the future. And this year, Walmart proved it knows that too.

In 2017, Walmart moved quickly. By the end, it's easy to call it Amazon's most worthy competitor and biggest adversary.

The retailer launched more online initiatives than can be quickly summarized. It partnered with Google on voice shopping, opened its thousandth grocery pickup location, took advantage of its huge footprint of stores for easy online returns, introduced free two-day shipping with every $35 order, and even launched a pilot program to deliver fresh groceries right into customers' refrigerators.

Recent acquisitions, like the 2016 purchase of Jet.com for $3.3 billion, started to pay off as it became more clear how they would fit into Walmart's strategy. These initiatives were good for 40 to 50% e-commerce growth by the end of the year — a staggering percentage for a retailer of Walmart's size, though it does not break out individual numbers for online sales.

But online isn't the only place where Walmart improved. Cleaner stores, a more robust grocery offering, and, of course, low prices lured more customers to stores for 12 quarters straight.

Wall Street has taken notice. It's one of the top five performing stocks this year in the Dow Jones Industrial Average, according to Bloomberg, and the stock is up about 43% from a year ago. Of 36 analysts, 15 say to buy and 21 have a hold rating or equivalent. Its last remaining sell-equivalent rating, from Wolfe Research, was upgraded in December. 

In 2017, Walmart proved it can compete in a new era. That's why we're calling it the Retailer of the Year for 2017.

The sleeping giant has awakened — and there's no stopping it now.