Developing a corporate culture

Paulette Dunn-Smith, Contributor

HAVE YOU ever gone to an office and heard the phrase: "It's the way we do things here?" This is what corporate culture is about. The way things are done in enterprises. This week, we examine an area that has been growing in importance in many medium and large enterprises in recent years as it has an impact on performance and productivity: corporate culture. This is something that is not easy to define; however, you know it exists when you see it. It is that feeling you get when you enter through the door of a business which tells you whether or not the people working there are in tune with the company's values and work ethic.

Corporate culture consists of a set of characteristics that distinguishes one company from another. It is concerned with how employees perceive and act out the characteristics of an organisation's culture - whether or not they like them.

It is an unwritten code that gives the organisation a certain 'feel' and determines what is considered right or wrong, important or unimportant, workable or unworkable in the organisation.

The corporate culture lets you know how the company reacts and responds to crises, the unexpected, the shocks, jolts, and sudden changes.

All new recruits to the company must learn this code to know the correct way to behave and what to expect from other employees.

Experiences

The culture of an organisation is the sum total of its past and current experiences, its history, philosophy, and values which hold it together. These are expressed through its corporate image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, its customs, and written and unwritten rules that the organisation develops over time and that have worked well enough to be considered valid by staff.

The culture of the organisation is manifested in the way the organisation does business, and how it treats its employees and customers and the wider community at large.

The level of autonomy, the extent of people's participation in the decision-making process, the commitment of staff towards meeting the company's strategic objectives, how information is communicated through the organisation, the work ethic, attendance, and punctuality are all influenced by its culture.

It ultimately affects the productivity and performance of the organisation and provides the guidelines for customer care and service, the quality of the service offered, the quality of products, the level of innovation and creativity in the organisation, as well as its methods of production.

Expressed commonly as "It's how we do things here," it is a unique feature of every organisation and one of the most difficult things to change.

Corporate culture is heavily influenced by the vision and strategic goals of organisations. The vision and strategic goals of the company should be clearly communicated, known, and understood by all staff. The vision and goals embody the objectives of the organisation, and its values are important to its existence.

The culture of the company is often expressed through the way people work, the way they dress, the way customers are treated, and the way staff treat each other. The culture of the organisation, therefore, influences the way management and staff approach work, and as a consequence, it affects levels of productivity and output.

Research and practical observation of successful companies have established a direct link between strong corporate cultures and high performance. It is the culture that will differentiate a high-performance team from a low-performing team.

Very often, new businesses and even existing ones overlook the importance of developing a sound corporate culture in their plans as they tend to focus more on maintaining profit margins than on the talent within the company. If companies do not have a strong culture, people get distracted from their assigned tasks, become unfocused, and start re-evaluating themselves according to their capabilities and their part in achieving company goals.

A vibrant, effective culture aligned with the business strategy will ensure that the organisation meets its long-term goals.

Far-reaching implications

A number of areas should be addressed while developing a corporate culture in the organisation. Although it is a long process, it is important as it has far-reaching implications. It is not just about being a good employer, but about having employees committed to the vision and the strategy of the organisation, and possessing the will and the means to make these a reality.

The following are 10 tips for developing an effective culture in your organisation:

1. Quickly and simply assess the culture.

2. Align culture with the business strategy.

3. Change culture to drive performance.

4. Benchmark the culture against the competitor.

5. Engage the workforce through culture.

6. Combine culture with incentive-driven performance.

7. Develop a culture that respects and celebrates diversity.

8. Use a positive culture to sustain performance in times of major change.

9. Build trust internally and externally with a positive culture.

10. Understand the importance of the role of senior management in building culture.

Developing a strong or the right organisation culture is the responsibility of managers, supervisors, and top management. Top management in every single company has to be actively involved in leading the process. It has to be embraced and led by those who lead and influence others, after all, it is about improving workforce productivity.

Paulette Dunn-Smith is an international trainer and workforce-development expert. She is the executive director, Dunn, Pierre, Barnett & Associates Ltd & chairman, Caribbean Career and Professional Development Institute. Contact her at pdunn@dpbglobal.com or www.dpbglobal.com.