Leading from the top: IABC EXCEL winner John Ryan speaks out on values and cultural practices.

Farm Credit Canada's director of corporate communication, Claire Watson, ABC, was touching base with Kellie Garrett, ABC, vice president of strategy, knowledge and communication, on final arrangements for a company video. "You know we're going to pour a bucket of water on him," said Watson.

"Really?" replied Garrett.

"Oh yeah. And he's OK with it."

"All right then, go for it."

As an observer on the scene, my first thought was that this exchange must be some sort of mysterious metaphor. The temperature outside at FCC headquarters in Regina, Saskatchewan, was just about at freezing that April morning, I know this because it was snowing. And who in their right minds would pour a bucket of water on their CEO's head, no matter what the temperature outside?

In this case, CEO John Ryan, clearly a good-natured sort, had a starring role in a new video being filmed for FCC's upcoming meeting of regional sales representatives. FCC employees made up the colorful cast of characters in the video, built around a sports station broadcast theme. It's the same video shown at IABC's international conference, where Ryan received IABC's prestigious EXCEL (Excellence in Communication Leadership) Award.

A thinking man, Ryan is passionate about his job, his employees and the farm communities that he serves. He sets that tone for his company, which explains why FCC is among Canada's 50 Best Employers, according to a 2003 study by Hewitt Associates and The Globe and Mail's Report on Business. In an interview with CW, Ryan spoke candidly of his commitment to FCC and its people.

You came to FCC in 1997 at a time when the company was not performing up to the board's expectations. What was your first priority when you started?

I will never forget the two days after I took the job. I was at the annual staff planning meeting, and it became clear to me that we needed far more clarity regarding where we were going. We were seeking expanded powers under new legislation--which was not a priority given the state of the organization. We had all the legislative power we needed to address more critical issues. So I halted the legislation project. In 2000, I put it back on the table when we could clearly articulate the future of the corporation and we knew what we wanted to do. So, my first priority was to set a very clear direction, externally and internally, and just go for it.

FCC has experienced a significant increase in revenue in the past five years. How large a part did communication play in bringing about that accomplishment?

Last year, we were at CDN$90 million, and this year we should be at CDN$100 million. It's a great place to be, given where we were 15 years ago--near bankruptcy. We needed a significant cultural transformation. Our success depended on the calibre and frequency of communication with staff and stakeholders. At first, the focus was difficult for employees who weren't comfortable with the idea of making a profit. We explained that we needed to be self-sustaining and invest in development, They gave a sigh of relief. That was a big cultural shift, and communication was paramount in making that happen. Today, I don't think there's any employee who would want it any other way. The reins are in our hands. We're not dependent on anyone.

Leadership development seems pervasive at FCC. How does this play a part in helping to achieve FCC's business objectives?

When I arrived, there were people around who had been here for many years. There was a mindset that we couldn't do a lot of things I believed that we really could do. From a leadership point of view, it was about getting the right people in the right chairs. My goal from day one was to have exceptional managers around me so that at any point if I'm not here, things will continue to move forward. It's not all about me. Developing leaders is absolutely critical.

How do your new Cultural Practices help FCC be a more effective organization, and what incentives are in place to ensure that these practices are followed?

We introduced the culture practices in late October 2003. The next step is to integrate them into our business strategy and objectives--so that's how we'll be measuring them. The most important principle is holding people accountable for respectful, team-oriented, high performance behavior day in and day out. I have asked my senior management group to champion the cultural practices. It will only work when employees see they are being modeled at the senior level.

The spearheading and monitoring of corporate strategy falls within the purview of the communication division at FCC. What was your thinking when you placed this function there?

Strategy is one thing, but if we can't explain what that strategy is, or people can't understand it at all levels, we're not going to be able to execute. I know it's unusual to have this kind of structure, but I see it as a natural link to our success, because an understanding of communication is part of creating outstanding strategy development. You have to get people to take ownership of the strategy and that's where communication comes in. Strategy isn't something that's meant just for senior people. You need buy in across the company.

Achieving a high-performing culture is an ongoing goal for FCC. How do you define high performance, and how does communication fit into that description?

In simple terms, high performing means generating outstanding results year in and year out. You can't have those kinds of results without employees who feel good and are excited about getting up and going to work every day. We've had some tremendous results in the corporation. But if we have our people running flat out all the time, that can end up going the opposite direction. We learned that if you have issues, the important thing is to get them on the table, get alignment and then move forward. It's all about how we communicate.

In a high-performance organization, how do you strike a balance between setting ambitious stretch goals and goals that are unattainable?

You have to ask yourself whether year in and year out, day after day, people can continue to do the unattainable, I don't think so. You have to build a safe environment so that people feel comfortable speaking up and saying what is and is not possible. What matters is whether people get excited about going to work. Are customers saying we're doing an outstanding job? The goals have to fit with a momentum that is sustainable.

How do you create a situation where employees "live" the company's vision--rather than seeing it as a directive from above?

We did a number of things with a great group of people, We took time to be sure we had the essence of vision within our broader audiences. We sought input from all 1,100 employees. We kept the message succinct enough for people to remember, We had five key themes, If people only came away with these points, then they got it. But they need to be able to connect the dots to the roles they play in achieving that vision. So weaving it into speeches, internal discussions and media interviews is part of how we keep the vision alive.

Can you describe the importance you place on knowledge management at FCC? How large a part does it play in adding to the organization's competitive intelligence?

The corporation is in a commodity business. It's not enough to have competitive interest rates. What our customers need is that "value-add" that comes because our employees have knowledge and expertise in the agricultural industry.

What differentiates this company from other financial institutions is our knowledge of the agricultural industry. Our practice brings experts together to share knowledge through Communities of Practice. And employees know where to turn to fill an information gap. So we capture what our people know and make it available to the organization as a whole.

Relationships among the staff, customers and partners seem to be a focus for the organization. How did this become part for FCC's culture, and how does it help the organization succeed?

I find that FCC employees have a tremendous capacity for strong relationships with colleagues and customers. Our vision has built on this strength by incorporating the notion of building strategic alliances. You have to choose your partners carefully and show to the outside world that the corporation is interested in partnering. We've got some great examples of partners with tremendous expertise out there that allowed us to develop new product lines with customers that we couldn't do on our own.

FCC employees seem to have a genuine concern for the needs of their customers. Has this always been the case or was this something that came about as a result of changes that happened in the organization's culture?

Our employees always have had a very close focus on the customer. Part of the reason is that so many come from farm families or rural areas. They understand the industry, the challenges and the opportunities.

We built on this strong culture by acknowledging these strengths, talking about how to take it to the next level and why. I spend a lot of my time talking about these issues with employees at all levels.

Customers judge the value they are getting from Farm Credit over and above the industry. Account managers are not just able to share their knowledge with the customer, they're tapped into the community of practice that represents all of the knowledge across the country. They are in the forefront of our industry.

Some consider communication initiatives like leadership, corporate culture, customer care, knowledge management and employee empowerment to be "soft" and ineffective compared to "hardball" approaches that focus on trouncing the competition. How do you respond to that line of thinking?

The so-called "soft" things matter much more than the "hard" things. So I take the reverse opinion to those people who say drive, drive, drive. One of our first cultural practices talks about our personal impact on other people. If you've got satisfied and happy people, they'll take that happiness into how they serve that customer. They will go beyond the call of duty day in and day out so that the customer is served in the best way possible.

Critics say that corporate social responsibility programs are a token gesture. How does FCC work to be a truly good corporate citizen?

We're absolutely committed to being an outstanding corporate citizen and our programs reflect that. We focus on issues like hunger, agriculture, safety and education. They all have to provide social benefit, focus on the customer, allow employees to be involved and provide opportunities for visibility. Because we believe that doing good can be good for business, we relate the programs back to our core business and align them to our strategic goals. I'm proud to say that last year about 200,000 people benefited from our work. Corporations have an obligation to give back to their communities. We live that reality at FCC.

FYI 

Farm Credit Canada (FCC) is a federal Crown Corporation, reporting to Canada's Parliament through the Minister of Agriculture and Agri-Food. Established in 1959, FCC provides support for farmers and agribusiness operators. About 1,100 employees serve customers from 100 offices across Canada, primarily located in rural areas. FCC's corporate office is located in Regina, Saskatchewan.

FCC offers financing products and business services to support primary producers and value-added agribusinesses beyond the farm gate. Many products and services are delivered through alliances with industry partners. The corporation has a portfolio of close to $10 billion and 11 consecutive years of portfolio growth.

FCC'S 10 CULTURAL PRACTICES

These cultural practices outline how employees should conduct business with each other, but also apply to interactions with customers and other stakeholders. We hold ourselves and each other accountable for:

1. Our impact on business results and impact on people.

2. Delivering on commitments, agreements and promises.

3. Building and sustaining committed partnerships.

4. Creating a safe environment where people can speak up without fear.

5. We measure our success by how others perceive and respond to our leadership, not by our personal point of view.

6. We talk straight and in a responsible manner. We are committed to the success of others; we do not engage in "conspiracies" against other people.

7. We "listen for" contributions and commitment. We do not listen against people.

8. We are highly coachable. We actively seek and listen to coaching.

9. We clean up and recover quickly,

10. We acknowledge each other often and celebrate both small and large successes.

Natasha Spring is executive editor of CW. She can be reached at [e-mail]