Scaling with heart: how values misalignment almost cost Diamond C its culture

Summary: This episode highlights Jeffrey’s leadership journey at Diamond C, emphasizing the importance of grit, perseverance, and confronting difficult realities while maintaining hope. The conversation delves into how the company scaled rapidly, faced values misalignment in leadership, and learned from the consequences of not prioritizing culture and values in hiring, ultimately focusing on rebuilding a values-aligned team for sustained growth and employee engagement.

What’s the story behind Diamond C

Diamond C is a family-owned company based in Mount Pleasant, TX, founded in 1981 by Kim and Mike Crabb. Initially started to provide for their family, the company quickly grew into a leading trailer manufacturer known for innovation, quality craftsmanship, and a strong commitment to its people, customers, and community. With a focus on producing feature-rich, durable trailers, Diamond C continues to live by its core values of “Do Work. Love Strong,” while striving to positively impact all areas of its business.

Conversation highlights on scaling with hearts

Jeffrey C: “When we scaled our business, we hired for function but not for values. I learned that hiring without a focus on values alignment creates misalignment and weakens the core of the culture, making it hard to keep everyone connected.”

Davin Salvagno: “The challenge in scaling is to never lose sight of your core values. As you grow, it’s essential to constantly reinforce your values and make sure everyone is aligned—because without that, culture becomes toxic.”

Garry Ridge: “True leadership is about balancing results with care for people’s hearts. When you value the foundation of your hiring and leadership practices, you ensure that growth is sustainable and that people remain the heart of the organization.”

Jeffrey C: “I realized the importance of ‘confronting the brutal facts’—it’s not about pretending everything’s fine. Even in tough seasons, we stayed rooted in hope and dealt with the challenges without losing sight of our purpose.”

Davin Salvagno: “When scaling, the growth of a company isn’t just about numbers; it’s about the well-being of your people. Leaders must create environments where employees feel valued, not just for what they do, but for who they are.”

For the whole conversation, listen to the episode on Spotify, iTunes, or HeartRadio.

Key points on scaling with heart from Jeffrey Crabb

1. The Importance of values alignment in hiring
   Jeffrey highlights that, during their company’s scaling process, they initially focused on hiring for specialized functions rather than for cultural and values alignment. This led to significant misalignment and issues within the leadership team. The lesson learned was that a lack of focus on values creates a disconnect between team members, impacting the culture and overall effectiveness.
2. Confronting brutal facts without losing hope
   A key value instilled in him by his mother was to “confront the brutal facts” but never lose hope. In the face of challenges and difficult seasons, maintaining hope and resilience became crucial for both personal leadership and the broader company culture.
3. Scaling beyond leadership capacity
   As Diamond C grew, it reached a point where leadership capacity couldn’t keep up with the demand. This gap led to issues such as burnout and strained communication. Jeffrey recognized the need to bring in external expertise to scale the leadership team but learned the hard way that aligning these external hires with the company’s core values was just as important as their functional expertise.
4. The challenge of unraveling cultural misalignment
   After realizing that they hired a team without ensuring value alignment, Jeffrey faced the daunting task of realigning the leadership team. This process was emotionally difficult and impacted employees’ confidence in the company. It took years of consistent work to rebuild trust and ensure the company’s culture remained intact.
5. The role of consistency in culture
   Jeffrey emphasizes that culture is built on consistency, where values and behaviors need to align over time. Without this consistency, organizations risk damaging their culture and internal cohesion. Regularly checking in with employees and reinforcing the company’s values are essential to sustain culture during periods of rapid growth.
6. “Heart-Centered” leadership
   Jeffrey reflects on how Diamond C’s leadership is driven by a deep sense of purpose, with a strong focus on promoting the well-being and success of employees, customers, and communities. Even when scaling rapidly, the company stays true to its roots of caring for people beyond just their work roles.

Key points on scaling with heart from Garry Ridge

1. Balancing results with personal care
   Garry emphasizes that effective leadership goes beyond focusing solely on the business results. True leadership sees employees as whole individuals, valuing them not just for their work but for who they are personally. Scaling with hearts means balancing the need for results with genuine care for employees.
2. Culture equals values plus behavior over time
   Garry discusses Simon Sinek’s idea that culture is the result of values plus behavior, but he adds that time consistency is essential. Without consistency in living out those values over time, culture suffers, and leaders may find themselves in a situation where the values no longer resonate with the organization’s actions.
3. The risk of toxicity when values aren’t consistently applied
   He warns that when values aren’t consistently lived out across all levels of the organization, toxic behaviors can seep in. This happens when leaders fail to hire and promote people who align with the company’s values, which can cause culture to unravel, even in companies with strong foundational values.
4. Emphasizing empathy and trust in leadership
   Garry believes that empathy, listening to people, and understanding their personal challenges are essential for building trust. Leaders must see their people not just as employees but as individuals with lives and struggles beyond work. This human approach is key to scaling a company with heart.

Key points on scaling with heart from Davin Salvagno

1. Counting hearts, not just heads
   Davin stresses the importance of seeing employees as whole individuals. It’s not just about their productivity (their heads) but also about their well-being, engagement, and personal fulfillment (their hearts). Leaders should actively engage with employees to understand their lives and provide support where needed.
2. Personal connection for building culture
   Scaling with hearts means leaders actively connect with their employees on a personal level. Davin shares that leaders should take the time to ask employees about what’s going on in their lives outside of work, building a relationship beyond just the tasks they perform. This connection fosters loyalty and trust.
3. The essence of heart-centered leadership
   He reiterates that heart-centered leadership is about more than just emotional intelligence. It’s about creating an environment where employees feel truly seen, heard, and valued for who they are, not just for their job performance.
4. The importance of regular check-ins with employees
   Davin suggests that leaders should regularly check in with employees to gauge how they are doing and show that they care. Even small gestures like asking about their personal victories and struggles can make a significant impact on employee morale and engagement.

Check the latest episode of Hearts not Heads: