As a business coach and mentor, I always assure my clients that open spaces will always create transparent and energized work environments.

This leads to the development and transmission of office culture across people, departments, and finally, the entire organization.

Years ago, at 1-800-GOT-JUNK? we had all our employees on two wide open floors in an office. There were no walls.

Then we moved into a downtown office tower and had to use the 14^th floor of the building for the better part of a year while our real office space was constructed.

For the first time ever people had private offices, and it was interesting to see what happened.  For the first week or so, people loved having their own space.  They felt more focused, appeared to get more done and had the quiet they needed to think.  Then, after a week, the chatter started. People said, “I miss everyone,” and, “Where is Greg? I haven’t seen him in ages,” or, “Is so-and-so sick today?” It went on and on.  After about three weeks, it was unanimous: private offices killed the buzz and employees wanted their open workspace back.

Everyone knows you’re hiding out in your private office playing on FaceBook, Twitter or surfing porn.  So go join the rest of your team – open up your entire office space.  When I mentor CEOs I push them all to get rid of private offices.  Including their own.

This slide is at Google’s Zurich office.

Nothing kills creativity like boring photos on the walls or using super-traditional board and conference rooms when you’re running a new and exciting business venture. Boring rooms, mean boring employees, mean customers go elsewhere.

Go a little crazy and use the physical space as a blank canvas to elevate the mood of the team. For example, at 1-800-GOT-JUNK?, one of our boardrooms was called the Blue Sky Room.  We had a huge wall with a blue sky and clouds.

ReThink Marketing in Vancouver has a Lego room, a drum set, globes hanging from the ceiling, a ping pong ball board room table and Astro turf for carpet.

Don’t be confined to some old school vision of the workplace. You’re not an old school company.  Plus you’ll get Free Publicity from building an awesome company culture. This is one piece of good and effective advice that I always tell CEOs that I coach and mentor.

Some of you will balk at the suggestion to make it easier to socialize at your office, but it will quickly help you develop culture. Provide your people with a BBQ that is always kept clean and ready to use with propane so people can cook casually for lunch or dinner. This kind of interaction builds culture in an authentic and relatable way. With even less effort, have your kitchen stocked with free fruit, cereal, various coffees, teas and more. You can even have the food delivered weekly by the grocery store. Whatever you do, make people feel at home and they’ll work longer and harder for you.

One of the businesses that I coach and mentor is a company called  I Love Rewards. Two years in a row they’ve been ranked as one of the top companies to work for in Canada.  They actually create rewards programs to help employers create great cultures – so they get it.

One of the things I love most about I Love Rewards is that they have an employee area called the Red Point Lounge. Every Friday at 3pm, you can go have a drink there.  Their company drink is called the Red Point.  They have these little crystal glasses with Red Point etched into it, and all the employees – I’ve got one too – carry a little card that has the recipe for a Red Point drink on it.  A Red Point is one and a half shots of Crown Royal, one and half shots of Sour Puss Red Raspberry, and 3 shots of Red Bull. You have a couple of those and you’re cranking out some extra work at the end of the day.

In addition, the folks at I Love Rewards don’t take themselves so seriously that they can’t have a little fun. They have white leather sofas in their office. They have a casual dress code that they call “First Date Dress Code.” If you wouldn’t wear it on a first date – don’t wear it to work.  They get culture.  No-one quits I Love Rewards.

Building a magnetic and infectious culture isn’t accidental; a company has to make a conscious decision to foster and grow it.  Once a company decides to actively cultivate culture, the process required to grow it is sort of like chasing the horizon: you never quite ‘get there‘ since it’s always moving, but the journey is wonderful.

In every industry, there are companies with fantastic cultures and others with terrible ones: Google gets it, Microsoft never has—but both are tech companies.  Both have about the same amount of money and both do roughly the same thing.  However, Google decided that they wanted their culture to differentiate them from the Microsofts out there, and they succeeded.

When you walk through Microsoft’s main campus, you can actually feel a cultural void.  Everyone at Microsoft sits in the dark in their private offices cranking out code without anyone around them to engage them in simple human interaction.  Google, on the other hand, has open space and whiteboards everywhere so people can put up ideas when the spirit moves them, and have unstructured discussion time.

As one of my first mentors, Greig Clark, the founder of College Pro Painters said, “Building a great company means creating something that is slightly more than a business and slightly less than a religion.” What Greig was saying was that culture has to be more than a passing trend or some ideal to which you pay lip service—like any aspect of culture outside of the workplace, it has to be lived, experienced, and grown in order to be sustainable. It has to be a cult.  Cult-ure.

Your Painted Picture should include ALL aspects of the type of culture you want so that you attract people who fit your culture and repel those who don’t.

Pic: Tommy Panetta

Every company has them.  Most CEOs don’t know who they are.  In fact most companies miss the diamonds sitting right in front of them.

Instead of going outside your company and recruiting people, companies need to really get to know their own people first.  Every company has diamonds in the rough.

The other day I met with an employee from a well known Vancouver company.  The employee is fantastic.  Yet due to some internal politics they are being kept in ‘their box’ and aren’t getting any visibility with the CEO and leadership.  Shame.  Because if the leaders don’t quickly see what this person has to offer a) they’ll leave and b) someone else will ‘hire a superstar’ from outside.

I coach CEOs that they should be spending time each week getting to know the talent they have 2-3 levels beneath them on the Org Chart.  CEOs should be figuring out who they have on their bench that are not being challenged yet by their VPs & Directors.

Years ago I found numerous employees who were diamond in the rough but worked in completely different business areas than they do now.  By spending time with them on the floor, going for coffee with them, getting to know their personal dreams, and as Tom Peters challenged us to do in his book In Search of Excellence with MBWA (Management By Walking Around), I uncovered the diamonds.

Who are your company’s diamonds?  Who will find them first?  You or the competition?

A few years ago one of my mentors was telling me about a story at Starbucks.  He was a Senior VP at Starbucks reporting into Howard Schultz.

Years earlier, Howard had called my mentor on his cell phone and asked ‘Why is the letter B not working on the signage at the 50th & Wallingford location’ in Seattle.

My mentor laughed out loud and responded ‘Really?, Howard is that really the question you should be asking me when you’re CEO?’

Howard frustrated replied ‘Yes, why isn’t the sign working?’  And my mentor replied ‘I don’t know. I’ll check. And I’ll get it fixed. However, if we’re really going to grow this brand our leadership team needs to ask leadership questions.’

‘Howard, instead of asking why isn’t the letter B working we need to be asking questions like this instead…’

‘I noticed the letter B on a sign at 50th & Wallingford isn’t working.  What systems do we have in place to ensure that all letters, on all signs, at all locations, in all countries, are always working?’

My mentor was right.

Entrepreneurs all too often ‘Major in the Minors’ and get stuck asking questions about the details.  And yes, the details matter.  And the details will always get fixed.  However, instead of just asking the question about something specific like a letter on a sign not working, try using the details as specific examples to ask larger more systemic questions. People don’t fail, systems do.  Look deeper in the systems that need to be fixed or created.

As a business coach and mentor, I suggest that you start asking the right questions and you’ll grow your company too.

Two years ago I was speaking at the 20^th anniversary of Entrepreneurs Organization (EO) in Las Vegas. It is not unusual for people to come up after I present to say hello, ask questions, or ask for my contact info. Not a big deal and it usually doesn’t result in much more than a couple second interactions. And ya, this time was different.

A young EO guy I’d never met before named John Ruhlin engaged me in conversation and asked if it was me who was coming to Cleveland to speak at their EO Chapter the following week. He also asked what my plans were the night before. I answered yes that in fact I was going to be coming to his city and that I would more than likely be taking advantage of the dollar being weak and shopping at my favorite store, Brooks Brothers.

We made plans to grab dinner and see a Cavs basketball game after I was done shopping. Someone offering to grab dinner and a sporting event is a nice gesture in business, but not a big deal or out of the ordinary, right??

Well, as it would turn out, coming in that day was a traveler’s nightmare. I had multiple delays and had to beg my way onto a flight that was pulling away from the jet way. I had to text John and let him know that I was coming in 5 hours later than expected and that I understood if he wanted to cancel. He casually reassured me that it was no problem, that he was waiting at the bar in my hotel and that I should get checked in, take my bags upstairs and come down refreshed for a great night. I thought, even though I didn’t get to go shopping I can still enjoy a great meal and take in a little Lebron James. All in all not a bad way to spend an evening in Cleveland. That is what I was expecting…

I got to the hotel and when I went to walk into my room, my jaw dropped. Spread out folded and hanging across my entire room were dozens of suit jackets, pants, shirts, and sweaters…and not just any dress clothes, they were Brooks Brothers dress clothes. My entire room looked like I had walked into a Brooks Brothers retail store. And it was all in my size.

Then it hit me like a ton of bricks. John, the EO guy had casually asked me what size I wore in an email that week because he said he wanted to send me his company T-shirt.

He’d just pulled off this amazing, mind-altering experience of service (what he calls “strategic appreciation”) and we weren’t even at dinner yet. I took as many pictures on my phone as I could, texted them to my wife, and realized I needed to call John DiJulius to change the example I gave him for his book on the best customer service I had ever experienced.

When I walked into the bar, John looked up with a grin and said, “You enjoyed your Brooks Brothers store?”

Over dinner and the game John explained how using ultra high-end gifts helps him land meetings with CEOs or keep top client relationships amazing.

One of John’s companies, Ruhlin Promotion Group, specialized in doing crazy things like sending a $500 Cutco knife set in 5 consecutive packages to a CEO asking them to “carve out time” for a meeting.

After the Brooks Brothers experience and yes the awesome Cutco knives he sent me engraved with my company BackPocket COO logo, I will meet John Ruhlin anytime, anyplace, and refer him to anybody because I can only hope more and more people get to experience the Ruhlin Promotion Group treatment first hand.

I walked into my friend Kimbal’s company in Boulder, Colorado. He was an employee of mine 15 years ago and he’s been quite successful at building and selling companies since then.

Upon arriving at Kimbal’s office, I couldn’t help but notice the plethora of Herman Miller Aeron chairs—which used to go for about $800 USD. When I saw Kimbal, I remarked, “Wow, you’re really burning through cash on this new business of yours!”

Kimbal said, perplexed. “Why do you say that?”

“I saw your Herman Millar Aeron chairs everywhere!” I said. I was convinced he was already spending the millions he’d made in business.  I love Herman Miller chairs—I even have one—but I couldn’t imagine buying one for every employee.

So then Kimball asked, “You didn’t see the desks did you?”

I hesitated. “No, I didn’t see the desks.”

“Go take a look,” he said knowingly.  So I walked outside, took a look, and noticed he had all these white plastic fold-up tables pulled up to those fantastic $800 Herman Miller chairs. So I walked back to Kimball and said, “What’s with all of the fold-up tables?”

Kimbal paused for a moment. “Well, everyone wants to have an amazing chair.  You want to attract amazing people and keep them happy? Don’t give them a $200 chair.  Everybody out there buys $1,000-$2,000-$3,000 workstations or desks and they buy crumby $250 chairs.  So I buy $100 desks from Costco and Ikea, and $800 chairs.

My employees love me, never quit, and everybody walks in and sees we’re successful, but they don’t realize we spent $850 on each desk and chair while other companies spend $3,000 on their desk and chair – do the math!”

Expensive desks won’t support your back and make you more productive, expensive chairs will.

The TV ad here created by ReThink is BRILLIANT.

They consistently blow me away with the creative they produce.  And this ad is just for Science World in Vancouver. A place where we all take our kids on weekends.

If you want your advertising to pop and get attention.  Get outside of the box.  Give us something to talk about.  Give us something like this to send out on Twitter and put on Digg. This is stuff we’d forward to our friends.

Chris Staples and his team have another award winner with this one.  How is your creative ?

Zappos Gets Culture

This post is from a guest blog post I wrote last week for McNeill Nakamoto a great Vancouver recruiting firm.  Jessica Rozitis kindly let me re-run it here.

In October, I had the opportunity to visit the current cultural buzz factory ‘Zappos’ the billion dollar online shoe store.

I got a unique opportunity to have dinner with their CEO Tony Hsieh & their COO Alfred Lin.  The following day which was Saturday they set up a 90 minute exclusive tour for 12 of us followed by an additional 90 minute  behind the scenes Q&A session where they really opened up to us.

To start with – I was intrigued and a little bit cynical.  Where they REALLY as good as all this press was saying ?

I’d been the Chief Operating Officer for 1-800-GOT-JUNK? during the heyday of the companies growth and cultural buzz.  During the midst of my tenure I was lucky to be there when we ranked #1 Company to Work For in BC two years in a row by BC Business Magazine and then ranked #2 in all of Canada to Work For.  I knew how the whole culture thing worked.  I saw how we cranked it up – and I saw it go up and down at various points during our growth.  We were having tours & Q&A’s of our company every Friday during those days too.  Were they really this good ? What did they do differently ?

I’d also helped build a couple other companies over the years with awesome cultures. College Pro Painters was where I cut my teeth with culture, and Ubarter.com was where I had fun trying it the dotcom way.  1-800- GOT-JUNK? was where we nailed it.

So with Zappos, I just wanted to see if they were REALLY as good as all their press said (and I’ve had lots of experience getting Free PR too)…..

Here is what I learned at Zappos.  I wouldn’t say I was blown away – I wasn’t – but it was damn good and I learned.  I was and still am in awe of HOW DEEPLY rooted their CEO & COO both live the core values that eminate throughout the company.  I have to go back on a weekday now too – to be fair – in an office that seats 700 people only about 20 were milling about.  My bet is the energy is mind blowing when they bring me back.

Key Points I saw and learned:

—First 10 hires are the most important people to ever hire.  They hire everyone else and they set the direction of the company culturally.

—Core values first…Make all your decisions based on them.  They asked employees what the core values should be and they call each other on them daily.

—They grade employees on how they are living the core values in all roles, two times a year.

—They bring job candidates from the airport in a shuttle. And after they drop off the candidate they ask the driver for his thoughts on the candidates fit culturally – the interview starts at the airport.

—To figure out your company core values they really pushed to have us ask ourselves what are our own personal core values….the company values come out of those.

—Core values should be short phrases not just single words like “passion”

—They tell the employees that they are responsible for care taking the core values.

—Culture is like what makes a flock of birds work with out leaders as they all fly and turn as a group. It’s their cultural DNA.

—As their CEO Tony said – if you don’t fire people for not following core values they become a meaningless plaque on the wall (the values – not the people)

—In 2003 they decided they wanted to be about customer service. So they cut a profitable model of drop shipping to REALLY focus on Customer Experience – and um – it’s working.

—Most important thing they’ve done is exceed expectations.

—Every year they print and give out a Culture Book (I got copies of 2008 & 2009) and it is only edited for grammar and spelling.

—Tony is obsessed with Happiness  – and suggests we all read the “Happiness Hypothesis”

—I think their quirky decorating of all workstations is a little bit too cluttered, dusty, and could use a few days of junk removal – but if that’s the only negative I found then even a guy with all my A.D.D. could turn a blind eye.

These guys GET Culture.  I only wish I could buy shares in the company.  Too bad Amazon bought the whole company for over $900 Million a few months ago.

Cameron Herold, BackPocket COO at Zappos