Leaderships Key Role In Defining And Shaping Company Culture

How do you define company culture?

Company culture is made up of a myriad of components, both explicit and implicit. At its core, it’s how the business operates—from how decisions are made, what things are focused on, how people are treated – to how the receptionist greets guests or how an email is returned.

Culture can be defined in organizational mission and value statements by HR departments with posters and mousepads. However, most people recognize that the real culture is invisible yet omnipresent in the workplace. I’m not saying that we shouldn’t have posters and mousepads, but when a company sets out to define its culture – and I think it’s good practice – they have to be ready to live up to the statements they make and use them as a North Star to make decisions that impact the business.

I think the pandemic amplified company cultures because it’s usually in times of economic uncertainty that companies really show their true colours.

What’s the most important driver in defining the company culture?

One single thing: the leadership at the top. If you work for a private company, it’s the owner or the family, and there are many examples of really successful companies in Canada still managed by a founder or the family. Private companies typically (but not always) have family-style organizational values, which drive a strong, loyal culture that spans generations.

In larger and public companies, the senior leadership team sets the tone for the company culture, starting with the CEO and C-Suite. The true company culture is how they act, make decisions, and treat people, even if the company values posters on the wall preach differently.

How important is culture in achieving your company’s talent acquisition and retention goals?

Well, you’re asking the wrong person because I’d say quite simply that culture is everything! It’s the glue that binds us together as a community of people who are all working every day to move the company forward. It’s what attracts people to the company, and it’s what makes them stay or not.

Secondly, I’d say culture is the most important factor in not just the company’s talent and retention goals but also in achieving the overall company goals.

For recruiting, nothing is a secret anymore when it comes to investigating your future employer. Candidates now have more than enough tools to check out the prospective employer’s culture, so reputation is even more important.

For retention, people want to work with people who share the same values, make good decisions, and get things done in certain ways. That’s how culture changes the way the company performs. If you can harness the power of a community of people, share a vision and strategy, and engage them in driving the business forward, the company’s future will change. Just look at Apple and Microsoft; they both started as computer companies, but their company cultures— starting at the top—helped drive these organizations to being the technology leaders they are today.

How hard is it to change or form a company culture?

Well, for sure, it’s easier to start out with a brand-new startup where you can define the company culture from the outset and onboard each new hire properly with all the right training and communications. You usually work with a very small group of people at first, so converging thinking and values is easy.

In terms of changing company culture, the best opportunity to do so is when there is a significant change in the organization, like two companies merging together, a large acquisition, or a company change of control. I’ve been lucky enough to experience all of those situations from the VP HR chair. The biggest challenge is that both companies (in the case of a merger) come with their own strong cultures, with their own ways of doing things, making decisions, and treating employees. It’s challenging but you’ve got to try to keep the best of both cultures and add something on top to build a bridge that connects the two cultures and creates the new culture so that employees eventually see the benefit of moving forward together. It’s like you have to take 1+1 and make 3. It’s been my experience that if 1+1 = 2, you never really create a new culture.

With a change of control like a private company turned public, it’s often a case of trying to keep the best part of the private company. This secret sauce made it successful enough to turn public in the first place. Then add in standard processes and policies to put some more structure around it.

Any advice to HR professionals setting out to reset or define the company culture

I would start by defining your company’s purpose and values. Sounds basic, but many companies and newly formed organizations fail to do it.

1.Define the company’s purpose or mission. Every company except nonprofit organizations exists to make money, but what is the driving force behind what you do? How is that different from your competitor?

2.Work with your senior leadership team to develop a short, concise set of company values. What’s important in your company? Look at the value statements of your competitors. What makes your company different?

3.Understand the culture and nature of the senior leaders in the company. There’s no point in developing a great set of company values that they can’t all sign up for.

Consistent alignment between leadership and organizational values fosters a cohesive and enduring culture that delivers sustainable performance and growth for years to come.