Here’s a scenario. Let’s say, hypothetically, that there’s a business called We’re Buying, who acquires another business called We’re Dying. We’re Buying wants to grow and has money to spend. We’re Dying is a ghost of the business it once was; it’s underperforming and losing money, but it still has value: significant history, good facilities, and a niche but loyal following.
The question is: what will We’re Buying decide to do with the few hundred people that We’re Dying employs?
I’m guessing that most people will answer: they’ll let those employees go. I’m guessing that most people will feel that it is sad and unfortunate and perhaps uncaring, but that it just makes financial sense. I’m also guessing that most people think this way because that is what most companies in We’re Buying’s position do.
But there’s a question to ask beyond (or before) “what should We’re Buying do?” And that is “why should We’re Buying do it?” Money is usually the biggest part of that decision. Business strategy might come into the thinking as well. But what should be at the centre of the decision is the company’s culture and values.
Consider the scenario again, but this time with We’re Buying as a professional sports team. At its core, the team believes that success is what matters most. Its motto is “we win”. And it values things like being the best, competitiveness and achievement. Under this lens, the decision to fire most of We’re Dying’s employees is probably the right thing to do – if it’s underperforming, that’s probably because its people do not share or display We’re Buying’s culture or values.
Alternatively, consider a scenario in which We’re Buying has built its success on acquiring and turning around smaller, struggling businesses. But, at its core, it believes that people are what matter most. Its motto is “we care”, and it values things like wellbeing and empathy. Driven by this kind of culture, the approach is going to be to work with We’re Dying’s people to patiently upskill them and help them to grow and adapt. It knows this may take some time, but that under these conditions, people have always come around and businesses have always turned around. (Actually, there is a company very much like this, called Barry Wehmiller.)
I listened to a podcast recently in which Student Maid founder Kirsten Hadeed said: “As long as you make a decision that’s in line with our values, even if the outcome isn’t the best, you never have to worry about losing your job.”
This kind of worldview, when making decisions, looks beyond the data or information you have in front of you (which may be different next month), beyond the strategy (which may be different next year), and instead is guided, first of all, by the organization’s enduring beliefs and qualities.
These kinds of rare businesses don’t just put their mission statements and values up on the walls. They live those values - in small ways and big ways - and bring them into their decisions – the small ones, and especially the big ones.