Cultural Considerations In Hiring - carterbaldwin.com · those at Enron were not so much the fault...

Cultural Considerations In Hiring

Inside you will learn:

● Why Corporate Culture Matters

● 2ProblemswithDefiningCorporateCulture

● 5WaystoAssessCulturalFitinHiring

● HowImportantCulturalFitistotheBottomLine

carterbaldwin.com 678.448.0000

Cultural Considerations In Hiring | 2


I. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

A. Definingcorporateculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

B. Whycorporateculturematters. . . . . . . . . . . . . . . . . . . . . . . . . . . .4

1. Psychologicalandeconomicwellbeing. . . . . . . . . . . . . . . . . .4

2. Costlycorporatemisfits...............................4

II. Problemswithdefiningcorporateculture . . . . . . . . . . . . . . . . . . . . . .5

A. Goalsversusvalues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

B. Understandingwhatisunspoken. . . . . . . . . . . . . . . . . . . . . . . . . .5

III.Interviewingforculturalfit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

TheFiveP’s:AClientAssessmentforMatchingCulture© . . . . . . . . .6

1.Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

2.Push . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

3.Pace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

4.Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

5.Principles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

IV.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

FindOutMore. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

AuthorBios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table of Contents



I. Introduction

Theconceptofcorporateculturegarnerssignificantmediabuzztodayandnotallofitisgood.Inthenewswelearnthatimportantmergersbetweengoliath multinationals never finally actualize, not because of failure tocometofinancialagreement,butbecauseofa “misfit”ofcorporatecul-tures.WearetoldthattherealcauseofnotoriousfinancialscandalslikethoseatEnronwerenotsomuchthefaultofindividualsinvolved,butofthatnebulousculprit,the“culture.”

Atthesametime,businesspublishingisexplodingwithvolumesofferingtohelpus“buildacorporateculture,1“tweak”ourcorporateculture,2 or tailorour corporate culture specifically for “mentoring”or “teambuild-ing”.Websites,conferencesandseminarsaboundwithadviceforchang-ingcorporateculture,creatinganinspiringcorporateculture,anddevel-opinganintuitivecorporateculture.

Whatreallyiscorporateculture,anyway?Andhowhasitcometooccupysomuchimportancebothinthemediaandinthedecision-makingprocessofbusinesseslargeandsmall?

A. Definingcorporateculture

Perhapsthesimplestdefinitionofcorporatecultureistheoft-cited:“it’sthewaywedobusiness.”Butallcompaniesdobusiness.Andcorporatecultureisactuallymuchmorecomplexandamorphousthanthat.Intruthcorporate culture is anamalgam—ablendof thevalues,beliefs, taboos,symbols, rituals andmyths all companiesdevelopover time.From thisamalgameverycompanydevelopsitsownsetofrulesandregulations,itsownstyle,itsdistinctive“personality.”

Contrast the edgy, Frisbee-flying start-ups of the 90s against tradition-albutton-downcultures like IBMorUPS.Compare the8-pageHumanResources Leave andAbsence policies ofmany of today’s corporate gi-antswithMotleyfool’ssuccinct“doanamazingjobandtakethetimeyouneed”3version.Youbegintoseehowdistinct—andhowdivergent—corpo-rateculturescanbe.

Whereanyindividualfitscomfortablyonthiscorporateculturespectrumwill determine not only howmuch time it will take to adapt, but howquicklyheorshecanexpecttosucceedandtoleadotherstosuccess.

Corporate culture

is an amalgam—a

blend of the values,

beliefs, taboos, sym-

bols, rituals and

myths all companies

develop over time.



B. Whycorporateculturematters

Clearly,corporatecultureisimportant.Itdefinesthedrivingforces,valuesandtempooftheorganization.Moreover, itdeeplyaffectstheeffective-nessofindividualsbasedontheirpersonalityandworkstyle.Toillustrate:shortlyaftersteppingdownaschiefexecutiveofficerofIBMCorp.in2002,LouisV.GerstneraddressedMBAstudentsatHarvardBusinessSchool.“ThethingIhavelearnedatIBM,”hesaid,“isthatcultureiseverything.”4

1. Psychologicalandeconomicwellbeing

Studieshaveshownthatcultureaffectsemployeesinvariousways,fromtheirethicstotheirwillingnesstocallinsick.Poorculturalfitcanbethecauseofpoormoraleandnegativeattitudesthatpermeatethroughoutanentireorganization.Discontentcanleadtopoorworkproductandslowedproductivityandcaninfluencerecruiting,employeeturnover,andpublicperceptionofthecompany’swellbeing.

Evenoncethesituationhasbeenidentifiedandcorrected—andthemis-matchedemployeeeliminatedfromthecorporateequation—theremaybefar-reachingnegativeconsequencestotheorganizationwhichtaketime,patience,andoftencostlymanagementinterventiontoreverse.

2. Costlycorporatemisfits

Damagefrommismatchedleadership ishardtoquantify.Afterthatkeyexecutivehasmovedon—oftenwithbadfeelingsonbothsidesoftherela-tionship—theleadershipvacuummustbefilledagain.RecruitingexpertslikeBradfordSmartfindthatmishiresarefrequently“misfits”forcorpo-rateculture.Sincestatisticallyastaggering50%ofallemploymentsitu-ationsresultinamishire,6theimplicationsofculturalmismatchstarttoshowthemselvesinhardnumbers.

●The U.S. Department of Labor estimates the cost of mishiring a$100,000peryearmanagerat$300,000.7

●Otherestimatesrunthegamutfromaconservative10timestheex-ecutive’sbasesalary8toanastounding24timesthatsalary.9

Obviouslythoseorganizationschoosingtoignoreculturalconsiderationsintheirhiringandrecruitingapproacheswilldosoatsomefinancialperil.

According to 49% of

CEOs, the ability to

maintain a common

corporate culture

and understand local

customs and ways of

doing business are

the two factors on

which global busi-

ness depends.5



II. Problemswithdefiningcorporateculture

AsKeithSwensonofWilliamMercerhasnoted,“Ifyoucandefinethecul-tureinsomeways,thenyoucanhireforit.”10Butunfortunatelythatisn’talwayseasy.Problemsoftenarise inhiringbecausecompaniesarecon-fusedabout their corporate cultureorbecause theyarenot consciouslyawareofit.

A. Goals versus values

According toMorrisR. Shechtman, author ofWorking Without a Net: How to Survive & Thrive in Today’s High Risk Business World,“99outof100companiesconfusetheirgoalswiththeirvalues.”Heexplainsthat“goalsarewhereyou’regoing;valuesarehowyou’regoingtoget there.Valuesareabsolutelycritical,butmostcompaniesdon’tknowwhatthosevaluesare.They’reintentonwherethey’regoing,notonhowthey’regoingtogetthere.”

Organizationsthatfailtoidentifytheircorevaluestendtomakethesamehiringmistakesoverandoveragain.“Ifyoudon’tknowwhatyourcultureis,you’llkeepreplicatingthesameproblemsineveryhire,”saysShecht-man.“WeseethatepidemicallythroughoutcorporateAmerica.”11

B. Understandingwhatisunspoken

Inotherinstancesthecorporateculturemaymanifestitselfveryclearly,butbecauseitsculturalattributeshaven’tbeen“spelledout” inpolicies,advertising,orothercompanycommunications,evenlong-termemploy-eesandmanagingexecutivesmaynotbehighlyconsciousofit.Therearemultiple examples of unspoken elements of company culture, themostobviousbeingindresscodes.Forinstance,likethebusinesssuitandtieismodeledbutnotcodified.

Butothercluestocorporatecultureappearifyouknowwheretolookforthem.A complex organizational chartmay reveal a company operatingwithinarigidhierarchyasopposed toa looselystructuredorganizationwhereexecutivesmayevenfunctionwithouttitles.Otherindicationscanbefoundinthetypeofsponsorshipsorphilanthropicactivitiesacompanyparticipatesin,itsphysicallayout—evenartworkdisplaysanddécor.

Executivesearchprofessionalscanhelpcompaniesarticulatetheirculturesothatitisreflectedinthepositiondescription,thesearch,theinterview-ingprocessandinhiringnegotiations.

Experienced

Executive Search

professionals can

help companies

articulate their

culture so that it

is reflected in the

position descrip-

tion, the search, the

interviewing pro-

cess, and in hiring

negotiations.



III.Interviewingforculturalfit

Conductinganexecutiveinterviewisahighlycomplextaskinandofitself.Butextractingfromthatinterviewtheelementsofanindividual’sperson-ality,behaviorsandvaluesystemthatmakeforgood“chemistry”or“fit”withthehiringcompany’sculturecanbeextraordinarilydifficult—unlesstheinterviewerhasboththeexperienceandaprocessfordoingso.

Towardthatend,CarterBaldwinhasdevelopedaclientassessmentmech-anismthatworkstodefine,articulateandmatchculture.WehavefoundthatmostculturalnuancescanbedelineatedbywhatwecalltheCorpo-rate Cultural Considerations,orThe 5Ps.

TheFivePs:AClientAssessmentforMatchingCulture©

1. Power –Wemust determine if the power of the organization isprimarily concentratedat the top,withdecisionsmadebya smallgrouporsingleindividualandthenexecutedbyorganizationalsub-ordinates.Orifthepowerismoredelegated,oftenrequiringagen-eralconsensusbeforedecisionsarereachedandenactedupon.Onewayofdetermininganindividual’sfitforacultureistoaskhim/heraboutbigdecisionsthatweremadeatthepriorcompanywhiles/hewerethere,andthentoaskexactlyhowthosedecisionsweremade.Whatownership is s/hewilling to take forbaddecisionsandhowmuchblameisplacedon“those”whomadethedecisions.

2. Push–Withthesequestionswedeterminehowmuch“pushback”anorganization tolerates andhowmuch it expects.While few cli-entssetouttohire“yesmen”,therearesignificantdifferencesinhowlonganorganizationwillallowanexecutiveleadertostandhis/hergroundbefores/heisexpectedtoconcedeandcomply.Someorgani-zationsexpectsignificantpushbackandhaveaculturewheretheex-ecutivewhocannotforcefullydefendhis/herpointwillnotbeeffec-tive.Ultimately,itisimportanttomeasurethetrueaggressivenessoftheorganizationasitalignswiththeaggressivenessofaprospectivecandidate.

3. Pace–Oneofthemosttellingattributesofcultureispace.Notonlydowe consider howquickly an organizationmakes decisions, butjustasimportantlyhowquicklydothemostrespectedleadersspeak,move,walk,etc.Thisalsospeakstoworkethicandwhatisconsid-ered“ahardworkingindividual”withintheorganizationi.e.work-ingonweekends,early/latehours,onlytravelingduringnon-prime

The 5 Ps: A Client

Assessment for

Matching Culture©

1. Power

2. Push

3. Pace

4. Play

5. Principles



businesshoursandwhatisthegenerallyacceptedwork-lifebalanceinthatcompany.Amismatchinthisarea,evenforacandidatewhomeetseveryotherqualification,willalmostalwaysproduceculturalrejection.

4. Play–While itmayseeminsignificant, thewaythatanorganiza-tionplaystogetherisadefiningcomponentofitsculture.Aresocialactivitiesaprominentpartoftheworklife?Doexecutivesfrequentlygotolunchtogether,orplaygolfwitheachother?Istherealotofcamaraderie,orarepeopleexpectedtobuckledownworkandsocial-izeontheirown?Anotheraspectofplaytakesintoconsiderationtheactual activities found in a culture.Companies can run the gamutfromearlymorningbiblestudiestohappyhours,andfindingacan-didatewhoalignswithplayisacriticalsteptofindingacandidatewhoalignswithwork.

5.Principles–Fewofushavemetsomeonewhowouldadmittobeingunethical.Weareallethical.Wejustdefineethicsinamannerthatqualifiesusandjustifiesourvaluesystem.Forpurposesofdetermin-ingculturalfit,wedefine“principles”asthewillingnesstocompro-miseone’sownvalues(corporateorpersonal)inordertoachieveahighlyvaluedgoal.Inotherwords,atwhatpointwouldyouviolateyourownstandardsinordertoaccomplishsomethingveryimpor-tant?EvenwiththeexpertiseofacompetentIndustrialPsychologist,thiscanbeatoughqualitytomeasure.

Inmeasuringprinciples,onehelpfulconsiderationistonarrowtheband-width.Witheachoftheotherculturalqualifiers(power,push,pace,andplay)mostorganizationsandmostindividualscanplacethemselvessome-where along a very broad continuum.For instance, someonemay scorethemselvesa“2outof10”ontheplaycontinuum;nobodywouldeverscorethemselvesa2ontheprincipleschart.Wethereforeaskclientcompaniesand candidates to rate themselves somewhere between a 9 (rarely willcompromisetheirvaluesforthegreatergood)anda10(absolutelyNEVERcompromisetheirvalues).Insodoingitbecomesnominallyeasiertoiden-tifycandidateswhowillstruggleinanethicallyambiguousenvironment.

. . . the number one determinant of ethical conduct is the corporate culture. The more ethical the company's culture, the more integrity employees will dis-play. Likewise, the more lax a company, the more prone employ-ees are to break the rules.11 Ethics Resource Center,

2005 National Business

Ethics Survey



IV. Conclusion

TheabilitytoassesscandidateswhowillflourishinaparticularcorporatecultureisahallmarkskilloftheretainedExecutiveSearchindustry.Be-causeretainedExecutiveSearchisclientcentered,theabilitytocompre-hendandexplicatetheclient’scorporatecultureiscriticaltotheongoingrelationship.Thebestfirmsexcelat:

●Takingthetimetounderstandthecorporatecultureandhelpingtheclient,whennecessary,toarticulateit.

●Craftingapositiondescriptionthatreflectsthatculturewhileassur-ingbothlegalcomplianceandopportunitiesfortherightcandidate.

●Employingexpertinterviewskillsandprovenmethodologyforget-tingbehindtheresume’sbulletpointstobehaviorandvalues.

●Ensuringthatculturechoicesaren’tbasedonethnic,racialorgenderissues.

Theidealconclusiontoasuccessfulsearchisaclientandacandidatewhounderstandeachother,appreciateeachother’svaluesandbeliefs,andareeagertoworktowardsharedgoals.Theskills,patienceandtimedirectedatuncoveringthe“fit”factorsforcorporateculturearewellworththeef-fortandinvestment.

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1 LarryJohnsonandBobPhillips,Absolute Honesty: Building a Corporate Culture That Values Straight Talk and Rewards Integrity (NewYork:AMACOM,2003).

2 S.Hanna,“TweakingtheCorporateCulture:ASituationInterventionforLeanKaizen,”(TraffordPublishing.On-demandPublishing,2003).

3 http://www.fool.com/jobs/workplace/workplace01.htm

4BusinessPundit,February,2005.Available:http://www.businesspundit.com/hiring-for-leadership-vs-hiring-for-a-cultural-fit/

5Careermag.com,March2007.Available:http://www.careermag.com/articles/i/ad513/blogs/employers-general/accenture-ceo-survey-key-is-to-maintain-common-corporate-culture.htm

6BradfordSmart,Topgrading: How Leading Companies Win by Hiring, Coaching and Keeping the Best People(NewYork:PenguinGroup,2005).Pp50-51

7TheCostsofMishiring[online].(StatisticfromU.S.DepartmentofLabor)Available:http://www.selection.com/statistics.

8KarenBenjackGlatzer,“HiringisJusttheBeginning:HowtoInsurethe“Right”HiregetsoffontheRightFoot.”Availableathttp://www.carterbaldwin.com/e-news/CB-200710.html.

9BradfordSmart,Topgrading:HowLeadingCompaniesWinbyHiring,CoachingandKeepingtheBestPeople(NewYork:PenguinGroup,2005).

10KeithSwenson,Availableathttp://www.allbusiness.com/human-resources/employee-development/300217-1.html

11MorrisR.Shechtman.Working Without a Net: How to Survive & Thrive in Today’s High Risk Business World(AmericanLibraryAssociation,1995).

Bibliography



Author Bios

DaveClappisManagingPartnerforCarterBaldwin.Inadditiontohisexecutiveleadershipforthefirm,DaveleadsCarterBaldwin’sB2Btechnology&business/professionalservicespracticeareas.Inaddition,DavealsofocusesonselectB2Cexecutiverecruitmentassignmentsforbrandandconsumerdrivenbusinesses.

Before joiningCarterBaldwin,DavewasSVP&GM forThomsonReutersCor-porationwithP&Lresponsibilityfortheglobalindirecttaxsoftwareandservicebusiness portfolio. His organization delivered tax & accounting software andmanagedservicessolutionstoFortune1000andmid-marketcustomersandpro-cessedover1MMtaxreturnsand$20Bintaxremittancesannuallyto10,000+state&localjurisdictions.

PriortohisyearsasabusinessGM,DavewasVPofBusinessDevelopmentforThomsonwhereheledstrategyandacquisitionsforthecompany’scorporatetax&accountingdivision.Inadditiontohisstrategyresponsibilities,Davewasper-sonally responsible for spearheadingandnegotiating anumberof key acquisi-tionsforthecompany.DavewasalsoamemberoftheExecutiveCommitteeofThomsonReuters’$1Btax&accountingbusiness,playinganactiveroleinglobalexpansion,productandhumancapitalstrategiesforthecompany.

PriortoThomsonReuters,DavewasafounderandseniorexecutiveofTaxPart-ners, responsible for sales andmarketing. Under his leadership, the companygrewrapidlyfromaVCfundedstartupintothenation’slargestindirecttaxout-sourcingbusinessandwassuccessfullysoldtoThomsonin2005.Earlier,Daveheldsenior leadershippositions inmarketingandbrandmanagementwiththeCoca-Cola Company and Cadbury Schweppes. Dave started his career in saleswiththeXeroxCorporation.

DavehasaMastersinManagementfromtheKelloggbusinessschoolatNorth-westernUniversityandaBAinPoliticalSciencefromLawrenceUniversity.HeandhiswifeMaryAnneliveinMarietta,GAandhavefourchildren.Besideshisfamily,Davelovesrunning,cookingandprettymuchanythingthatallowshimtobe“activeandoutdoors.”



Author Bios

DavidM.SobocinskiisaFoundingPartnerofCarterBaldwinandhasbeenwiththefirmsinceitsinception.HispracticeisacrossFortunecompaniesandMiddleMarketPrivate andPrivateEquity backed entities primarily inCommercial andConsumerServicesaswellasManufacturingarenas.Dave’sportfolioofsearchesincludescorporateanddivisionalpresidentsandtheirdirectstaffs,primarilyinthedomesticmarket.

BeforefoundingCarterBaldwin,Daveledaregionalsearchfirmtonationalpromi-nence,expanding it throughout theMid-AtlanticandNewEnglandmarkets, re-sultingintwoconsecutivelistingsontheInc.500.Priortoexecutivesearch,Davewasintheconsumerproductsindustry,wherehehadresponsibilitiesforbusinessdevelopment and sales across the Southeast.He earnedhisBachelor of SciencedegreefromJamesMadisonUniversity.

PriceHarding’sclientsrangefromindustrialandtechnologycompaniestonon-profit organizations and vary in size from entrepreneurial and venture-backedstart-upstomulti-billiondollarcorporations.Hehasbeenprincipleconsultantonmorethan200successfullycompletedrecruitingengagementswhilebuildingtwosuccessfulcompanies inhistwenty-plusyearsofexecutivesearch.Withastrongspecializationinseniormanagementselectionandteamalignment,Price’srecruit-mentconsultingfocusincludessearchesforC-Levelleadership,officers,anddirec-torsforbothprivatelyheldandpubliclytradedcompanies,andnon-profits.

InadditiontohisresponsibilitiesatCarterBaldwin,PricecurrentlyservesasChair-manofUnitedTechnologyGroup,andontheboardsofHighTechMinistries,TheTechnologyAssociationofGeorgiaandTheTrinityForum.Hisarticleshaveap-pearedinvariouspublicationsandhehasbeenquotedinINCMagazine,TheWallStreetJournal,TheAtlantaBusinessChronicleandnumerousindustryandtrademagazines.

Priortoenteringtherecruitmentindustry,PriceservedasDirectorofManufactur-ingOperations forAstechnologies,anAtlantabasedcompanythatproducedhy-draulicpresses thatwereused in themanufactureofautomotiveheadliners.HereceivedhisBachelorsDegreeinTheologyfromBaptistUniversityofAmerica,andconductedMasterslevelstudiesinPastoralCounselingatTempleBaptistSeminaryinChattanooga.

Priceandhiswife,Nancy,havetwomarrieddaughtersandliveinAtlanta,wheretheywalktoBuckheadChurchmostSundays.



Author Bios

JenniferPooleSobocinskiisaFoundingPartnerofCarterBaldwin.Jenniferhasachievedregionalandnationalrecognitionforherskillandexpertiseinexecuting“C”levelofficer,andboardofdirectorlevelsearchesforpublicandprivateclients.Herclientsrangefromstart-upstoFortune500companiesinthemanufacturing,industrial,andtechnologysectors.

Underherleadership,CarterBaldwinhasachievedmorethan400%revenuegrowthsinceitsfoundingin2001,beennamedtwicetotheprestigiousInc.500listoffast-estgrowingprivatelyheldcompanies,beennamedamongAtlanta’sTop10RetainedSearch Firms, and has expanded the organization’s presence throughout NorthAmerica.Therecipientofnumerousawardsandrecognitioninthesearchindustryasaconsistenttopproducer,JenniferwasrecognizedbyCatalystMagazineasbeingamongAtlanta’sTop50Entrepreneurs.

PriortofoundingCarterBaldwin,JenniferwastheleadingsearchconsultantforoneofAtlanta’stopsearchfirms.ShebeganherprofessionalcareerasaFinancialAdvi-sorintheFinancialServicesSector.

Jennifer ison theBoardofWomen inTechnology,aprofessionalorganization inAtlanta.SheisalsoanactivememberofTAG(TechnologyAssociationofGeorgia).

JenniferisagraduateofAuburnUniversitywithadegreeinInternationalBusinessandFinance.

Bill Petersonco-leadsCarterBaldwin’snonprofitandacademicpractice,recruit-ingseniorleadersforstateuniversitysystems,privateeducationinstitutions,non-profitentities,healthcareorganizationsandrelatedcompanies.Withoverfifteenyearsofexecutivesearchexperience,Billhassuccessfullyledhundredsofsearchesforchiefexecutiveofficers,presidents,provosts,vicepresidentsanddeansforpri-vateandpublicinstitutions,aswellasseniorlevelexecutivesforcorporateclients.

BeforejoiningCarterBaldwin,BillspentsixyearsintheAtlantaofficeofanationalsearchfirmasapartner,leadingthefirm’shealthcareandhighereducationprac-tice.Bill’searliersearchexperiencefocusedinthehealthcaresectorwhereBillre-cruitedandledclinicalandphysiciansearchesforNorthAmericanhealthsystemsandacademicmedicalcenters.

BillgraduatedfromLibertyUniversitywithabachelor’sdegreeinpoliticalscience.Heandhis familyhave frequentlyopened theirhome to fosterchildrenandareactivelyinvolvedwithFosteringTogetheratNorthPointCommunityChurch.BillservesontheadvisoryboardoftheAtlantaMission.HehasbeenmarriedtoAngelaformorethantwentyyearsandtheyhavethreechildren.

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