Creating an Entrepreneurial Environment

Attracting, motivating, and retaining productive employees may be more difficult now than any time in our recent history. Many employers strive to attract top tier candidates who can deliver results despite a less than optimal work culture. While this is an admiral objective, it is not realistic to assume a company can attract this level of talent for all positions. Furthermore, these “best of class” employees will normally command top dollar and can be difficult to retain.

I would argue that building a distinct, performance-based culture will help bring out the best in all employees, and can generate a level of performance from the “average” employee that can rival that of most companies heralded “high fliers”. Committing to build and sustain an entrepreneurial environment can enable a company to inspire employees to perform at their highest level, and have a sustained positive impact on their peers.

What is an entrepreneurial environment? I would describe it as an environment that has clarity on an ambitious outcome, is willing to assume some degree of risk, and allows the employees to partake in some portion of the benefit if success is achieved. Based on my experience, three key elements to building an entrepreneurial culture are transparency, creating agency, and demonstrating an authentic respect for your employees and peers.

Transparency: To build a deeper sense of caring regarding what work one ask an employee to do, it is critical to help them understand why it is important. Even better, create an environment in which they can weigh in on what they need to do to address a particular problem. I have always been rewarded by actively sharing with associates what we are trying to do and why, and invite them to actively engage in the merits of this as the target we should be striving for. While on more than one occasion I have been influenced to at least modify my thinking as a part of these discussions, clearly at its conclusion most employees seem much more engaged, and have a deeper understanding of what they need to do to help achieve these objectives, and how to help manage risk in context to these learnings. Take a chance—let your employees hear the big picture early and often. Let them know when things are shifting and try to be comfortable sharing with them when you have made a mistake, and how you look to recast your vision.

Creating Agency: Agency is often defined as one’s ability to act independently and make free choices. Many employees in a company often do not feel they have the contextual information to have a sense of agency, which is why transparency is the first critical cornerstone. Another key inhibitor to creating agency is an organization that is obsessed with penalizing mistakes due to assuming some level of risk. Your reaction to a negative consequence due to an employee taking risk will have a direct impact on behavior. Creating an environment that encourages employees to take a reasonable degree of risk in order to help achieve success is critical in creating agency even if that risk ends in unintended negative consequences. Being deeply engaged and consistent in helping employees understand this “measured” degree of risk and accepting some failures are perhaps some of the most important leadership characteristics one needs in a vibrant entrepreneurial culture.

Respect: Authentic respect is one of the most valued non-cash currencies coveted by employees, but is rarely established and sustained in most institutions. Respecting the time and the effort of your associates is critical and creates a degree of ownership that is one of the extraordinary and valuable trademarks of an entrepreneurial culture. Nothing feels more disrespectful than when you are asked to attend a meeting, and the host is late and poorly prepared. This behavior screams: “I AM MORE IMPORTANT THAN YOU, AND I DO NOT VALUE YOUR TIME”. Similarly, disrupting your associates work flow for an unplanned ‘quick meeting’ which disrupts there workplans for the day can have a similar effect. Taking the time to clearly explain an issue and actively listen to input related to execution, timing, and managing alternative demands are critical in fostering respect. It takes a long time to build respect, and a few short moments to destroy it. If you allow one of your key leaders to exhibit behavior that is disrespectful to others, it will largely undermine your efforts.

One of the keys to reinforcing these behaviors is the example set by the leaders at the top of the organization. Your personal willingness to embrace with passion these cultural aspirations will translate into achieving sustainable long-term results.