Defining a Winning Corporate Culture
What is Corporate Culture
According to Investopedia.com, the corporate culture definition is “beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.”
The corporate culture of a business is reflected in many ways including how it structures
- Goals
- Strategies
- Customer interactions
- Investor relationships
- Community
- Dress code
- Business hours
- Office setup
- Employee benefits
- Hiring decisions
- And more
A company’s corporate culture is generally implied and develops organically over time based on the traits of its’ employees.
Since corporate culture makes up much of an organization’s viewpoint, developing a defined optimal culture can be crucial for long-term success and scalability.
Corporate Culture Examples
All businesses have a corporate culture, whether it has been identified or not. Some companies stand out as having a positive, supportive, and inspiring culture that makes it an exceptional workplace.
Here are 3 well-known companies, that have developed a well respected and positive corporate culture according to Entrepreneur.com.
Zappos
Zappos is an online shoe store that emphasizes building a strong positive culture. Half of the weight of the hiring process is based on the results of a cultural fit interview. It is given to determine whether a new employee would fit in with the current company culture.
They go a step further by offering any employee $2,000 if they choose to quit within the first week if they determine the job is not a good fit.
Instead of promotions and raises going to those in the top social circle, they are awarded to employees who pass skills tests and showcase improved job skills.
The corporate culture of Zappos demonstrates that maintaining a positive and fair work environment is a necessity.
Twitter, one of the top social media platforms, has defined its corporate culture as one that is team oriented and laid back.
By offering rooftop meetings, free employee meals at the headquarters, and even yoga classes, Twitter wants to ensure their employees are happy because satisfied employees are willing to go above and beyond while on the job.
Squarespace
Squarespace has risen in popularity as one of the best website creation platforms and is regularly voted as a top workplace in New York City.
With 100% health insurance premium coverage, flexible vacation offerings, catered meals, a fully stocked kitchen, monthly celebrations, and even a relaxation space in the office, there is no wonder professionals love working at Squarespace.
The Importance of Corporate Culture
As the previous examples demonstrate, the corporate culture of a business can shape how it operates.
With Twitter’s laid-back team-oriented environment, discussing necessary changes and new initiatives is likely more comfortable to do.
Along the same lines, interdepartmental collaboration is probably a painless process.
If the culture was one of no teamwork and being afraid to communicate, crucial conversations wouldn’t take place or would be met with so much static they would lose value.
Developing a corporate culture has three main benefits.
Define Identity
Defining the corporate culture helps a business to identify its values and identity. Without an idea of the culture, it’s difficult to develop a set of consistent values.
Increase Retention
A company with a strong culture attracts better employees, and once hired those employees stay longer.
This leads to a reduced turnover rate, fewer new hires, and improved chemistry amongst employees because their team remains consistent.
High turnover rates are a clear sign of an issue within a business’ corporate culture.
Define Image
The corporate culture defines the image of a company. Depending on the type of business, customers and clients can see how employees are treated which can boost sales and customer loyalty.
Social media platforms showcasing parts of the company culture can bring potential customers or clients to the business because they are attracted to the culture they see.
The image is also a part of attracting high-quality employees.
Defining Corporate Culture
The concept of defining corporate culture is a very personal one.
Not just to the management team or the CEO, but to the entire business as a whole.
No one can define your culture for you.
It should be developed after receiving input from every member of the organization from the custodial staff to the President.
Here are 15 questions you can ask to start defining the corporate culture of your company.
- How is feedback managed?
- Who gets promoted?
- What behaviors are rewarded?
- What five words describe the company?
- How does the management team support and motivate employees?
- Who fits in and who doesn’t?
- What causes conflict and how is it resolved?
- Is risk-taking encouraged?
- What’s one thing you would change about the company if you could?
- What makes you proud to work for this company?
- How would you describe the organizational politics at the company?
- Who in the organization has the power to get things done?
- What kind of flexible work arrangements are available
- How does the organization support your professional development and career growth?
- What role do company values play in hiring and performance reviews?
Just as a reminder, these questions should not only be asked to the upper management team. Allow all employees to provide input. The more information that’s collected, the better understanding you will have of the current corporate culture, potential areas of growth, and areas that are thriving.
A critical component of corporate culture is high employee engagement. If your employees are asking, what is company culture, it’s important to get them engaged in the process. If increasing employee commitment is a part of the corporate culture that you need to improve, click here to download a free copy of my book, 5 Tips to Improve Employee Engagement. When you develop a positive corporate culture with fair practices and policies that engage your employees, your business has a higher chance of success over time.
About the Author Cindy Constable
Culture must be created, grown, and sustained by design over the long term. Cindy is a Culture Transformation Specialist for corporations. She uses a restorative process called A.I.R.R. to elevate your company culture and bring integration between your leadership, vision, culture, and team members to enhance overall performance.
