We talk about it often, but can't quite put our finger on it: the company culture. We know that it influences the performance and, consequently, the results of our company, but we don't know exactly how.
The concept of corporate culture is defined as a pattern of norms, values, expectations and goals within an organization.
Is that all, or is there more? What exactly does it mean, and what use is it to us?
The definition of corporate culture
There are all kinds of different definitions to be found for the term corporate culture. Ultimately, the understanding of culture underlies it.
According to Geert Hofstede, an internationally renowned scholar in the field of cultural studies, culture represents the collective mental programming of a group or category of people, which distinguishes them from others.
A group with the same norms and values. That is actually a very nice description with which we can explain the term corporate culture.
A sense of community within a department or company that ensures better or worse performance than competitors who can and do the same on paper.
The power of the collective, which allows a team that is mediocre on paper like Leicester City to suddenly become champions of England. That is corporate culture. A strong corporate culture can ensure that the organization distinguishes itself from other groups with a different culture.
It is, therefore, the collective mindset of the company, as it were. A mindset of values, norms, rituals, and symbols.
What good does it do us?
The results of your company depend to a large extent on the prevailing corporate culture. Its importance is therefore immediately clear. Unfortunately, many organizations still underestimate this phenomenon, particularly because it falls under the category of 'soft' factors that are difficult to influence and define.
Culture cannot be easily encompassed, incorporated into guidelines, or influenced. We have just mentioned the example of Leicester City.
Coach Claudio Renieri recently described the corporate culture within his team very aptly in a few words: 'We know that we are qualitatively inferior to a large number of our competitors. The moment we think we are better than others, we run into a 4-0 defeat.'
A brilliant description. We know our limitations, so we fight for every meter.
It is therefore immediately clear what type of player will not fit within that culture (and thus the team). It is not without reason that company culture is increasingly a reason not to hire applicants, and even increasingly a reason for departure.
Young employees, in particular, are quicker to leave a company if they do not feel a match in terms of norms, values, and motivation. The recruitment process is therefore becoming increasingly important.
Not only to be able to judge someone's intelligence through an assessment, but especially to match the 'soft' variables, such as corporate culture.
How do you recognize or build a strong corporate culture?
Does your company have a clear and strong corporate culture that contributes to success?
To answer that question, it is first important to identify the prevailing culture and assess whether it meets the desired situation.
Connecting management
Managers and leaders who set a good example and consciously support or even direct the corporate culture are of great importance. Managers who connect departments and people and put together their team based on complementary qualities and ambitions.
The 'we' feeling
If the Dutch national team wins, then they are 'our boys'. WE have won. But if they lose, then THEY have done poorly.
What is the language of your organization and between departments when things aren't going so well? If they still talk about 'we', you are likely dealing with a strong corporate culture.
The team composition
A strong culture stands or falls with the composition of the team and the mutual respect among team members. Do they know and respect each other's strengths as well as weaknesses?
Clashing personalities can greatly strengthen your team and culture, provided they can interact respectfully.
Business Improvement
What is your secret? How do you contribute to the company culture within your organization?
Your employees form the dynamic link between strategy, organization, and culture. Our business improvement training courses can help you get the most out of your people and build a strong corporate culture.