When we think of corporate culture you will probably think this is something that gets prime place in the company’s website along with the company’s vision, mission, values etc, all tucked away somewhere in the “About Us” section. If scratching your head is the response to the question – “What is your company’s culture?”, you should read further.
Here is an extract from a book titled “Corporate Culture and Performance“. The book has the results of a survey done among companies to find a correlation between corporate culture and performance.
|Measure of Success||Average Increase for Twelve Firms with Performance-Enhancing Cultures||Average Increase for Twenty Firms without Performance-Enhancing Cultures|
|Stock Price Growth||901%||74%|
|Net Income Growth||756%||1%|
Companies like Zappos and Southwest Airlines have done extremely well based on a strong, customer oriented culture. They have always delivered the best customer service, and the culture of going out-of-the-way to help customers has given them a consistent performance boost.
In the article published by Harvard Business Review, Anthony Tjan, the managing partner of a VC firm, Cueball, has listed 6 rules for building and scaling the company culture:
1. Start with an inspirational, aspirational and authentic purpose.
2. Identify a common set of values and how you will define and measure it.
3. Leaders should embrace the culture in their behavior and activities and lead by example.
4. Identify and reward frontline employees that strongly believe in the company’s culture.
5. Seek, speak, and act with truth.
6. Hire for attitude and not just for skill.
If all of these recommendations sound esoteric, we now have software applications that will allow you to measure, manage, and promote your corporate culture. Check out products from Blackbookhr and CultureIQ.