In the realm of business leadership, who would you rather be: a peacetime manager or a wartime manager?
Choosing your managerial path is no easy feat, as it entails a profound examination of your business practices and a commitment to embracing positive transformation. There’s no right or wrong path. Both peacetime and wartime CEOs have their place, but when it comes to shaping your company’s culture, being a wartime CEO means you won’t steer the culture yourself; rather, you’ll let it flow.
Proficient businessman, author, investor, and blogger Benjamin Abraham Horowitz says, “Peacetime CEO spends time defining the culture. The wartime CEO lets the war define the culture.” If you’re interested in defining your company’s culture, this article will suggest key strategies to pave the path to a healthy, positive culture. If you’re not, this is a chance to explore how shaping and fostering your company’s culture makes profound differences.
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What is Company Culture?
A company culture is the company’s persona that helps build a long-term sustainable organization by setting shared values, behaviors, goals, and practices, which results in a healthier atmosphere that leads to more profits. As a manager, you need to comprehend the significance of building a healthy workplace culture, as you play an essential role in setting the core of this culture, and you get to tailor it to what’s best for your organization.
What is the Significance of Fostering a Company Culture for the Business and Its Employees?
Some CEOs may think that giving time and effort to build a strong, healthy, and positive culture is just a luxury or a waste, but it’s quite the opposite. Having a fit culture enhances productivity and drives revenue. Here are some of the fruitful results of nurturing a strong culture:
- Enhancing Employees’ Morale: Developing a positive culture boosts motivation, loyalty, and engagement among employees while also effectively resolving workplace conflicts.
- Improving Productivity: Creating a more rewarding and supportive work environment can enhance productivity among the entire team.
- Reducing Stress Levels: Changing the company culture to be more interactive and mistake-forgiving helps decrease overall stress levels for both employees and management.
- Maintaining a Strong Business Reputation: A positive and engaging work environment plays a crucial role in establishing a solid business reputation, attracting job seekers, and fostering successful professional relationships.
- Impact on Employee Retention: Culture directly impacts employee retention, as 35% of workers reject job offers that do not align with their desired culture. A poor company culture increases the likelihood of employees seeking other opportunities.
- Driving Employee Engagement: An exciting company culture leads to higher levels of engagement among team members, resulting in positive business outcomes. Engaged employees are 17% more productive and have a 41% lower absenteeism rate.
- Fulfilling Employees’ Desire for Growth: A healthy company culture prioritizes the advancement, well-being, and contentment of its employees, enabling them to thrive in their professional journeys.
The Types of Company Culture
Once you acknowledge the importance of establishing a solid culture, it’s time to take a look at the types of culture and determine which one best fits your organization. According to the Cameron and Quinn Competing Values Culture Model by professors Robert E. Quinn and Kim Cameron. They identify four types of culture, which are demonstrated through two dimensions, with one dimension representing an organization’s focus on either external or internal factors and the other dimension representing the organization’s inclination towards either stability or flexibility.
Clan (Collaborate) Culture
- This culture is internal looking and flexible.
- It fosters a familial atmosphere, prioritizing cooperation, consensus-building, and teamwork.
- It is known for its friendly and open environment, with leaders serving as mentors.
- Tradition and loyalty are deeply ingrained within the community.
- The company values the long-term growth of its employees and maintains a harmonious group dynamic.
- Individuals’ well-being is highly regarded, and success is measured by the organization’s ability to meet client needs while caring for its employees.
Hierarchy (Control) Culture
- This culture is internal looking and focused on control.
- It’s known for its highly formal and structured environment, where rules and procedures dictate behavior.
- The leaders serve as efficient coordinators and organizers.
- The long-term objectives revolve around stability, performance, and efficient operations.
- Management values security and predictability in their operations.
- Success is measured by reliable delivery, seamless planning, and cost-effectiveness.
Market (Compete) Culture
- This culture is external-looking and focused on stability and control.
- It’s characterized by unrelenting competitiveness and a concentration on reaching goals and finishing tasks.
- The employees are driven by goals and competition.
- The leaders are highly efficient, determined, and demanding.
- The organization’s shared goal of success and reputation unites its members in their devotion to winning.
- Market penetration and share are key indicators of success, with competitive pricing and market leadership also playing a substantial part.
Adhocracy (Create) Culture
- This culture is external-looking and flexible.
- It is a dynamic and innovative culture that fosters an entrepreneurial and creative spirit. Individual initiative and freedom are actively encouraged within the organization.
- The leaders are risk-takers and innovators.
- The organization is united by a commitment to experimenting and thinking differently, with a focus on being at the forefront of their industry.
- Long-term growth and acquiring new resources are prioritized.
- Success is defined by the development of unique and new products or services, and being an industry leader is highly valued.
How Do You Identify the Organizational Culture of Your Company
Each of these cultural types has its pros and cons; you need to find out which one will work for you best. Understanding the qualities that contribute to a positive work environment is crucial when choosing the most suitable workplace culture. That’s why you should explore key questions like:
- What is your company’s vision?
- What are its core values?
- What are our objectives, and what work methods will help us achieve them?
- Which policies and procedures hold significance for you?
- Develop a strategy for integrating your culture into your everyday job setting.
- Involve your employees and find out what will enhance their work experience.
Once you answer these questions, you’re ready to craft your own workspace culture.
Some Methods to Evaluate Your Organization’s Culture
Your mission isn’t complete once you set the ground rules of your culture. You need to observe, analyze, and develop this culture to keep it strong, healthy, and positive. Here are some pointers for assessing the culture of your workplace:
- Ask executives to describe the culture of the organization.
- Ask employees about their assessment of their work experience.
- Compare the information leaders have provided with the employee descriptions.
- Observe instances where the company’s values are evident in its daily work practices.
- Analyze employee surveys.
- Conduct exit surveys.
- Set up focus groups with a sampling of employees and actively listen to their stories regarding the current culture. Analyze metrics related to employee engagement and retention.
- Find out where your culture stands in the two organizational dimensions by taking the Organizational Culture Assessment Instrument (OCAI), created by Kim Cameron and Robert Quinn.
Now that you’ve gained comprehensive insights into the significance of culture, its establishment, and its development, are you willing to be a peacetime CEO or a wartime CEO?