What is it about the organization of professionals that allows some firms to adapt to marketplace turmoil and prosper, while others lose share and gradually decline? Why do some firms seem to thrive on change while others melt down? We believe the answers to these questions are found in an organization’s culture. In talent-driven organizations, leaders must focus on micromanaging the culture, not micromanaging the stars. Culture is not about a firm’s dress code, it is NOT about how you or your partners feel. It is never completely codified in a formal rulebook or policy manual. Culture encompasses beliefs about everything that goes on in a firm. It is a set of invisible guideposts that defines and shapes how people behave. A firm’s cultural beliefs guide the decisions that are made and develop the way the firm responds to internal and external threats. The Cultural Core Culture is an organization’s greatest competitive advantage; it cannot be copied. Each firm has a different culture, but we found that there are five core beliefs that characterized the way that senior stars thought about their organization and their own relationship to it, shown here. Partnership “Belief in partnership” means that senior stars are the owners of the firm and regardless of the legal form of ownership; it must be governed as a partnership. Consensus must be built among partners before major decisions about strategy are made. The firm’s success is the result of the efforts of the group as a whole. Teams The work of serving clients is performed by constantly changing teams of professionals. A firm’s belief in extraordinary teams mitigates the tension among stars as they strive for personal success while simultaneously serving clients well together. Young stars learn that they must work together to succeed. Being an effective team member is what counts; that’s how you succeed personally. Community Belief in community is the proposition that at the end of the day we’re all part of one firm, and we are expected to work together and help each other. The belief in community keeps everyone working together, regardless of specialty, level of experience, or geographic location. It includes everyone, not just partners or senior stars. This belief keeps in check the tension that naturally develops as people identify with the goals of their particular part of the firm (i.e., their practice area or office). Stars/Clients Outstanding firms believe that stars and clients are equally important. You can’t have satisfied clients without stars, and you also can’t have stars without satisfied clients. The belief that both are equally important enables firm managers to work for a balance in meeting conflicting demands between clients and stars. If the firm is to succeed, both constituencies must be proactively managed, and each must think ultimately it occupies the number one spot. Perpetuity The core belief in perpetuity refers to the shared understanding, at the senior level, that you and your peers are building a firm that will transcend generations. That you’re not only “in this together” with your current fellow partners, but also that part of your job is to help create a firm that will endure so future partners can succeed. It’s the long view, and it drives people to behave selflessly in ways that support the firm.