What is Corporate Culture?
According to inc.com
Corporate culture is rooted in the company’s goals, strategies, structure, and approaches to labor, customers, investors, and its greater community.
As such, it is an essential component in any business’s ultimate success or failure.
Why is Corporate Culture important?
According to a research paper on Corporate Culture and Performance by Kotter & Heskett.
They compared 2 sets of companies,
set 1 that didn’t pay any attention to the culture and set 2 that considered culture not only important but an asset.
What they noticed in the stock prices of the first set of companies over the 11 years of that study is a 74% increase.
However, the second set of companies that paid attention to their corporate culture had an increase of 901%.
These numbers are enormous and this is a massive difference.
Over 80% of leaders from these companies say that corporate culture is important to them and has a huge impact on the environment they work in.
But, here’s the thing only a fraction of companies pay attention to corporate culture and make part of their company in the day-to-day.
This surprises me, do we not know in the corporate world that company culture is not only important but an asset?
If we do then why do we choose not to do anything about it? After all the companies will get a great benefit by investing in their culture as we saw from the research.
How to develop a culture in your company?
Here’s one way you can start working towards your company’s culture.
A software development company for example,
when they get a project that requires a specific type of skill, such as cybersecurity, they would hire someone whom they will make responsible for keeping the platform secure.
So, someone is hired and held responsible for the success of that project.
Now, why not do the same for your company’s culture?
If we understand and recognize the importance of culture in a company and its output.
You could hire an Organizational Psychologist or a Wellness Officer who has in-depth knowledge of culture development.
You might say okay let’s hire someone but how would we measure their success?
The answer to that depends on the vision of your organization, you see there is no one type of culture that you can implement that would lead your company towards growth, every company has a different vision and/or motto.
Once you are clear with your vision, an Organizational Psychologist or a Wellness officer will help you integrate those aspects into the HR department so it can be deployed all across the corporation and in future hiring and set your company in the direction of growth.