This document discusses the importance of company culture and defines what company culture entails. It summarizes that company culture encompasses an organization's vision, values, norms, systems, symbols, language, assumptions, environment, location, beliefs, and habits. The document also discusses three levels of company culture - artifacts, espoused values, and shared basic assumptions. It provides evidence that a positive company culture can increase employee productivity and retention while improving the company's reputation. The document advises that with effort from leadership, companies can improve a poor culture to create a happier workforce and increased returns.
2. In recent years, the phrase “company culture” has
evolved from a new concept to a buzzword that’s
nearly lost all meaning. And yet, according to
Forbes, company culture is now more important
than ever before. We constantly talk about
companies with “fantastic” culture and how a
“nightmare” culture can drain the productivity (and
life) out of your employees.
So how can you evaluate and improve your
company’s culture when the phrase itself has
entered the arena of vague corporate jargon?
It’s time to set the record straight.
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3. What is
company
culture?
Company culture
is defined as an
organization's vision, values,
norms, systems, symbols, language,
assumptions, environment, location,
beliefs, and habits. Or, more simply
put, it’s “the way things are done
around here.”
Company culture encompasses
everything from your employees’
belief in your company’s mission,
to whether your employees eat
lunch alone at their desks or take
lunches together.
4. There are three levels of company culture:
From the biggest vision to the smallest interaction,
company culture is the driving force behind your
company’s success.
Artifacts: The obvious elements, like Happy Hours
and Bagel Fridays. These are the physical, tangible
things that even an outsider can see.
Espoused values: These are the values the companies
preach, like Apple with their focus on innovation or
Tom’s Shoes with their focus on social awareness.
Shared basic assumptions: The most esoteric of the
bunch, these are the cultural elements that often go
unsaid, but remain the foundation of company culture.
This could be anything from “we all go bowling on
Thursdays” or “you don’t ever question the boss”.
5. This study demonstrates it well:
Participants were asked to perform the simple physical task of
lifting boxes while a researcher measured the compressive forces
on the participants’ spines using sensors. The participants
performed the same task twice, once while the researcher was
friendly and encouraged positive conversation, and once while
the researcher was visibly upset, overly critical, and did not
encourage positive interaction between participants.
Why is company culture important?
6. The findings were exactly what you would expect. The compressive
forces on the participants’ spines increased when performing the
same task in the negative environment.
The bottom line is, a negative work environment increases
stress and decreases job performance.
Alternatively, a study at the University of Warwick
found that workers in a positive environment were
12% more productive. Researchers conducting
the study discovered that the happy workers
were more efficient and able to increase
work pace without sacrificing quality.
The research is clear - a strong, positive
company culture can mean the difference
between stressed, unproductive employees
and happy, efficient employees.
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8. Retention: Companies with a strong,
meaningful company culture are more likely
retain their employees. You’ve worked hard
to attract star talent to your company; you
need them to feel that they belong in your
organization so they’ll stay long-term. And
lower turnover means more cost-savings in
hiring and training.d when performing the
same task in the negative environment.
Reputation: A solid company reputation
will not only attract more qualified and
ambitious employees, it also increases the
value of the company in the financial
market and builds a loyal client base.
Return: Good corporate culture does
pay. Over a 10-year period, companies
that focused on improving their culture
had a return on investment that was
more than triple the ROI of companies
in the S&P 500.
10. If you’ve surveyed your employees and
your company’s culture has been rated
less than stellar, don’t despair just yet:
there are ways to change your
company’s culture.
Forbes recommends taking such steps
as redefining your company’s clarity of
purpose in the eyes of your employees,
fostering employee engagement by
focusing on how each worker fulfills
that purpose, creating an environment
of trust, and valuing continued learning
With a little effort from leadership, you
can harness the power of your
company’s culture to create the happier
workforce, the first-rate reputation, and
the larger return needed to keep your
company growing.
