Company culture is one of the most talked about yet most ambiguous concepts that exist. I mean, honestly what is company culture? How does one describe it? Better yet, how does one influence it?
In our recent article about Navigating Change Mindfully, we touched on the need for change readiness assessments at the very onset of a change initiative. One of the many facets that should be reviewed in a change readiness assessment is organizational culture and the organization’s capacity to adopt the change. In order to do that effectively you need to understand how to characterize organizational culture and what elements of culture are important when planning change management initiatives.
A Harvard Business Review article entitled “What Is Organizational Culture?” provided a variety of definitions of organizational culture, but my favorite was one by Richard Perrin - “Organizational culture is the sum of values and rituals which serve as ‘glue’ to integrate the members of the organization.” I like this one because it speaks directly to the fact that culture is an amalgamation of all of the things that organizations hold to be true and the interactions that they do and do not condone. Said more succinctly, organizational culture is the description of accepted norms at a company.
Let's take a look into the number of factors that help to shape culture.
Leaders play a crucial role in shaping an organization's culture. Their actions, behaviors, and decision-making set the tone for the entire company. Strong leaders create an environment where employees strive to be the best versions of themselves and therefore have meaningful interactions at work and find purpose in what they do.
The structure of an organization can influence how employees interact and collaborate. The right structure promotes healthy collaboration and empowerment whereas a poor structure may serve as a barrier. There is no single “best” structure. Typically the right structure depends on organization size, industry, and/or strategic objectives.
Ensuring that information is able to be disseminated timely and reach the intended audience in a way that resonates is critical to a strong and positive culture. When information flows freely within the organization, employees feel valued and more engaged. This fosters a culture of trust and collaboration.
Company values are the bedrock of an organization, influencing everything from how employees treat colleagues to how they interact with customers. These core beliefs, often condensed into a handful of powerful keywords or phrases, set the standard for employee behavior. Essentially, company values tell employees how the organization prioritizes its people and what's expected in terms of self-governance.
Many leaders try to influence the culture of their organization by implementing kitschy initiatives aimed at rapidly changing some negative aspect(s) of their current culture. For example, a company may be battling the stigma that leadership doesn't care about its employees, so the company implemented a weekly "Free Donut Friday" in hopes of boosting morale. While these perks can be a temporary mood lifter, they don't address the root causes of the negativity.
A strong company culture goes beyond ping pong tables and free lunches. It's about fostering genuine connections, open communication, and a shared sense of purpose. It's about creating an environment where employees feel valued, respected, and empowered to do their best work. Initiatives like making communication and decision making more transparent, increasing opportunities to participate in quality professional development, and implementing recognition programs that acknowledge contributions are far more impactful in building a positive and sustainable company culture.
The secret to a thriving company culture lies in authentic leadership. When you, as a leader, show your true self, empathize with your employees, and actively listen to their concerns, you build a foundation of trust and respect. This genuine connection leads to happier, more engaged employees who are empowered to tackle challenges head-on. Studies show that organizations with a strong cultural fit experience higher performance and lower turnover. Let Transformation Catalysts help you unlock the power of authentic leadership and build a culture that drives success.