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Day 9: Why Culture is so Important

Carl Kleimann

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This is Carl Kleimann form Odyssey One Source with today's BusinessMakers 30 Day Entrepreneur Challenge. Just like individuals, every organization has its own distinct culture. Small organizations typically develop a culture that is similar to that of its owner or chief executive. This often happens by default as a result of the direct contact that a small business owner has with his or her employees. And while larger, more complex organizations are often shaped by the values and beliefs of their CEOs, their culture is often crafted and maintained in a more strategic and deliberate manner. In fact, I would go so far as to say that the greatest organizations of our time have each gone to great lengths to foster a culture that supports their mission, vision and values.

Before we go any farther, let's define what we mean by an organization's culture. In short, it is the shared values and practices of its employees. It defines the way that organizations act and react and can be particularly important in the face of adversity or challenge. It is often described as "the way things are done around here." As individuals, we each have a culture that is uniquely ours. That culture defines our norms and makes us somewhat predictable to those that know us. That same predictability is an essential element of the brand that great organizations strive to establish. Take the Ritz-Carlton for example. Anyone that has ever stayed at a Ritz-Carlton hotel clearly recognizes that this organization has a culture that supports a strong customer focus. That sets the tone for everything from the people that they hire to the way that they conduct performance evaluations. If you don't fit that culture, you simply won't work for Ritz-Carlton, at least not for long. They recognize that their intense customer focus is a key market differentiator and they simply won't settle for anything less from their employees.

Now, let's get back to the role that culture plays in your organization. In order for employees to act in a consistent manner, they must have a thorough understanding of the values of your organization. For example, if you own a technology firm, you most likely want to foster a culture that supports innovation and creativity. There is no place in that industry for employees that cling to the status quo and resist change. The most effective way to ensure that behavior is to develop an organizational culture that supports those traits. Everyone in the organization must share that expectation and must hold others accountable. They will only do so if they are passionate about the culture and they will only be passionate about it if they can equate it to their own success. So, in short, they must be able to see how the organization's culture promotes its success and therefore, their success.

This all sounds pretty simple and in fact, it truly is. Most business owners do a good job of fostering a culture that supports their business' mission although some go about it in a much more formal manner than others. The most common mistake for businesses large and small is inconsistency. Culture is not situational. Values don't change based on circumstances. You can't hold some employees more accountable than others. If you don't believe me, try this at home with your children. Hold one child accountable to a different set of standards than the other and see what happens.

Conclusion:

Fostering a strong organizational culture that supports your business' mission, vision and values will pay big dividends. Not only will it strengthen your brand, it will greatly simplify the job of managing your employees. It will improve teamwork and reduce conflict in your organization as employees gain a better understanding of their expected behaviors. Unless they perform repetitive manual tasks all day long, you simply can't teach them how to react to every possible situation. But if they thoroughly understand your organization's culture, they will always be able to chart their own course toward the outcomes that you ultimately want. That is empowerment at its best!

If you are serious about creating a more effective, more harmonious organization, here are some steps to help you achieve that goal:

  1. The first step is to determine what type of culture best supports your organization's mission, vision and values. For example, a culture that supports rapid change and development requires different priorities than a culture that supports precision and accuracy. Just like a culture that supports a customer focus requires different priorities than a culture that supports an employee focus. As the business owner, it is up to you to decide your organizations priorities.
  2. Once you complete step 1 above, do dramatic, story-worthy things that represent the culture that you want to create. Make them dramatic enough to cause people will tell stories about them. For example, if you want to create a more employee focused culture, instead of making the bride work on her wedding day, give her the entire week off.
  3. Find other people within your organization that do story-worthy things and tell stories about them. Illustrate their behavior in employee meetings, etc. in order to set an example for others.
  4. Performance reviews, financial reward systems, and training programs define an organization's expectations. Make sure that yours reward behavior that is consistent with your culture and help guide those that aren't there yet.
  5. And finally, hire people that fit your culture. It is much easier to teach someone a skill than it is to change their values.

This is not something that occurs overnight so don't get frustrated. Once you get a nucleus of employees on-board, they will spread it throughout your organization. You will marvel one day at how harmonious and effective your organization has become.

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