2 approaches to the development of corporate culture
Corporate culture is one of the most important factors influencing the company’s long-term success.
There has been much writing about the importance of corporate culture for the success of the company on the market. Few people today doubt that the corporate environment affects the performance and loyalty of employees and the quality of production. However, what is still the subject of discussion is the optimal model of corporate culture and its relationship to the market, product and company goals.
What kind of corporate culture do we need?
It is clear that a company producing standard parts needs different corporate culture than an advertising agency. But this statement is not enough to describe the right culture and not to create it at all.
1. Measurability is the basis
The prerequisite for the purposeful development of the company culture is its description using measurable parameters. If we can measure culture, we can set goals and assess its development. There are several models that serve to describe the organizational culture. In finding the optimal one, we always solve the compromise between the accuracy of the model and its practical usability. As a rule, the more accurate the model, the more complicated and thus less practical.
2. Goal setting
In order to develop a meaningful culture of a company, we need an idea of the target state. The personal preference of the owner or director is often reflected in this idea. It is not possible to avoid it altogether, but we must realize that the argument “do it this way because I want it” is not too convincing for the others.
For every company, the right corporate culture looks different. But the goal is always the same: to enable effective process set-up and to have committed and loyal employees who create synergies.
3. Analysis
One of the options for defining the parameters of the right organization culture is to analyze the market environment, product characteristics and company strategy with respect to the needs of the company’s internal functioning in the “soft” area and, on that basis, to determine the parameters of the target state.
You can test this approach using our Corporate Culture Market Compatibility Test.
4. Survey
The second approach is to compare employee engagement in different teams with current team culture. Higher engagement in the team indicates a more appropriate team culture, which is a guideline for setting a target culture for the entire business.
The Peoplix method is based on this principle.
5. Development
In the case of corporate culture development, the path to the target is not fast. It is also not possible to set a fixed procedure plan at the outset. It is always necessary to leave the project with some flexibility and to react to the situation.
Corporate culture change projects typically take 6-24 months. It depends on the size of the company and on the difference between the starting and the target state.
In our portfolio we have a number of tools that we use in different order and to a different extent to the development of corporate culture. Every project is individual and needs to be tailored to every business and situation.
3 Steps to a Great Company
Corporate culture is important and it is good to look after it continuously.
1. Track the status
Periodically find out what employee engagement and culture are in your business.
2. Keep your goal clear
Keep your vision of an optimal corporate culture up to date and do not be afraid to edit it.
3. Take care of your corporate culture
You may not see the results of each activity right now. But if you do not do anything, the rectification can be difficult.
Corporate culture is invisible, but it is the core value of every business. Successful firms differ from other companies by corporate culture.
