Why Corporate Culture Matters!

What exactly is corporate culture? The dictionary defines culture as “the totality of socially transmitted behavior patterns, arts, beliefs, institutions and all other products of human work and thought.”

Jason Young, maintains in his article “High Performance & Corporate Culture” that it is not a set of core values developed by a small group of people at an off-site leadership meeting. It is not always what a chief executive describes in an annual report or shareholder’s meeting. In fact, corporate culture is not always what the leadership team of an organization says or thinks it is. What an organization assumes, believes values, accepts, and promotes, produces and the way in which behavior occurs frames its corporate culture.

Why is culture so important? Strong corporate cultures outlast the influence of even the strongest leader. That’s the reason Apple will not only survive but also thrive in post Jobs era if it is able to maintain its culture that Jobs build during that last decade and half. The importance of corporate culture in success of an organization and longevity cannot be overstated. “An organization’s norms and values aren’t formed through speeches but through actions and team learning. Strong cultures have teeth. They are much more than slogans and empty promises. Some organizations choose to part ways with those who do not manage according to the values and behaviors that other employees embrace. The above is outlined by Harvard Business School professors Jim Heskett and W. Earl Sasser with co-author Joe Wheeler in their new book “The Ownership Quotient”.
Culture, the human terrain of an organization, has real bearing on organizational success and performance. It affects communication, co-operation and learning. It can help explain why changes will prompt some employees to quit even when compensation is not affected, why a talented leader may flounder in a cultural mismatch and why incentives and individual psychology alone don’t predict results. Defining and delivering on the promise your organization’s culture can deliver tremendous internal and market-facing benefits.

Nurturing corporate culture: According to Jason, “In some companies, culture develops by default. In others, culture develops in ways that are conscious, intentional, and tangible.” Noting, Southwest Airlines is one example of a company that has created a work environment where people can do their best work. In fact, in the words of its former CEO, “We are looking for a particular type of person, regardless of what job category it is. We are looking for attitudes that are positive and for people who can lend themselves to causes.”

Several organizations have built a unique corporate culture over the time to meet demands of changing global competitive market place to reap a unique advantage. I remember a mid-size Indian IT firm initiating a successful, multiyear internal campaign in late 90s to focus the centricity of customer among thousands of its employees to cultivate high quality delivery & deeper customer engagement. It was a well thought out strategy that was dictated to materialize firm’s ambition to differentiate its position among global customers & transition in to tier 1 IT vendor at global level.

This underscores the fact that, the buy in among the people of entire organization is very critical as it accelerate the motivational environment and allows people to do what they do best as they start seeing alignment between organizational values and individual behavior in broader context. The whole process needs active support from top leadership, constant communication to keep people focused on stated or desired culture.

Shyam Verma, PMP, ITIL-F,
Program & portfolio Management
LinkedIn: spverma. Twitter: Shammy1

2 thoughts on “Why Corporate Culture Matters!

  1. Of course strong culture matters. But, changing it to get to where you want to be is often tougher than it seems. Do you have suggestions for great change management books? I’ve been reading Transforming Corporate Culture by two leading management consultants and it’s given me some great concrete steps on how to implement the cultural changes that my company is after. I’ve found very few books that actually help with the implementation of change. http://corporateculturepros.com if you’re interested.

    • Leading Change by Kotter is a good starting point. additionally, From Good To Great by Jim Collins is something that some really important ideas about getting things moving though it is not technically about manifesting long-term change.

      Shyam Verma

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