Whether by default or intent,
every business has a culture. That
culture is the essence of the company and is reflected by the shared values,
beliefs, practices, stories, and symbols which guide its day to day operations.
For many new business starts,
the culture is simply a reflection of the values of the individual owner. However,
as a business grows and hires new employees, the original and founding values of
the owner may or may not mesh with the values of new staff. In order to anchor the original values, it is
critical for young businesses to establish a clear culture to shape the future
of the business.
Beyond having culture to
guide the business, research indicates companies with a strong culture
significantly outperform those with less remarkable cultures. While there are compelling
arguments for creating a strong business culture, there is often confusion on
how to do it. Without any action on the
part of the owner a culture will develop, so, the question is not one of
creating a culture, but rather a question of creating a strong positive
culture.
At the heart of a strong
business culture is a vision or mission statement that articulates the guiding
force behind the organization; its purpose for existing. Next, articulate the values and communicate
both the values and the vision for the business to all staff. Along with the
vision, these values become the framework that will guide and shape future
decision. Working within the framework
are people and hiring the right people is essential to making the values a
permanent part of the culture. No
company can make this happen without people who either share the values or who are
willing to change and be able to embrace them.
Not only can hiring the wrong people work against the values, it can
have a negative impact on morale, productivity, and customer relationships.
Finally, understand the
desired values must be embraced by everyone from the top of the organization to
the bottom. Values that serve as little
more than window dressing will not be embraced by the employees. A management team that looks to impose a
vision on the workforce, but not embrace it themselves will see a culture
evolve that reflects the reality of demonstrated values rather than the desired
values.
Many companies create a
strong corporate culture and make the values a real part of daily business
practice. A notable example of this is
how Johnson and Johnson, the makers of Tylenol products, reacted to a tampering
problem in the mid-1980s. As you may
recall, an individual laced Tylenol products with cyanide killing 7 people and
creating an aura of panic about the product.
The Johnson and Johnson management ordered all Tylenol products be
immediately removed from the shelves and destroyed. Although a costly and seemingly drastic step,
the company won praise for taking swift and decisive actions, used the event to
improve product safety, and were rewarded as customers returned to purchase
their products. When asked about the rationale behind the
decision, the management referred back to the company values expressed through
their credo, which challenged them to put the needs and well-being of the
people they served first, showing how deeply ingrained those values were in the
company.
Is the culture in your small
business working for you or against you?
Do you want to create a stronger and positive culture? The time to start is now.
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