Don’t Underestimate Corporate Culture

Beyond salary, benefits, perks, and the nature of the work itself, a company’s culture is often the reason people stay in an organization. That’s because corporate culture—though not readily apparent or even easily defined—can make you feel like you are part of a team, that you belong, and that you are doing something important.

It can also do the opposite.

No matter where you work, part of the reason you’re there may very well have to do with the connectedness you feel with your co-workers. When this is strong, you are probably accomplishing a lot and feeling good about how you spend your working day. When it is weak, you are probably dreading each Monday morning.

Think of Twitter, Google, Apple, Zappo’s, Wegman’s, Whole Foods, Southwest Airlines, REI, Patagonia and Netflix. These are all companies with positive corporate cultures that share widespread brand awareness, strong financial performance, unrelenting customer focus, and a reputation that makes them a magnet for job seekers.

Corporate culture can best be defined as the shared values, attitudes, standards, and beliefs that characterize those in an organization. It is based on the beliefs and behaviors that determine how a company’s management and employees interact and handle their business transactions.

It is defined over time from the cumulative traits of the people hired, and rooted in the organization’s goals, strategies, structure and approaches to its employees, customers, vendors, investors and the larger community. You might think of your company’s culture as its personality.

The statement “culture eats strategy for breakfast” has often been attributed to the great management consultant Peter Drucker, who argued that a company’s culture would trump any attempt to create a strategy that was incompatible with its culture. Drucker compared company cultures to country cultures. Never try to change one, he said, but instead try to work with what you’ve got.

In the same way that a company’s products and services, leadership team, market conditions, competitive pressures, and other factors need to be considered in any corporate strategy, so too must the existing culture.

Corporate culture can either help or hamper an organization in its efforts to implement a strategy. More often than not, leaders underestimate the power of culture rather than embracing its power for helping them. Implementing a strategy that runs counter to or requires a huge shift in the culture can be disastrous.

Instead, you can leverage the corporate culture by ensuring it is aligned with your new strategy, latest company acquisition, or your incoming CEO. Each of these transitions can be successful if the cultural aspects of the change are considered along with all the other due diligence completed.

A positive company culture can benefit recruiting, employee motivation and retention, teamwork, reduced absenteeism, customer service, responsiveness to change, and bottom line financial performance.

Developing such a positive culture evolves over time and grounded in the employees you hire. Be careful and selective in recruitment and in every way you conduct business, and your culture will enable the organization to grow and thrive.

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