Defining, building and maintaining a corporate culture
Corporate culture is the foundation on which an organization is built. It is moulded by a number of different elements (explained in detail below):
- Business environment
- Management philosophy and personal style
- Staff demographics, preferences and expectations
- Customer expectations
- Board of directors’ expectations
Corporate culture may change naturally as your startup grows and evolves. However, with a little effort, culture can be built to align with your business philosophy. Keep in mind that actively building and maintaining a culture requires an ongoing effort and a deep understanding of the influence each of the elements listed above bring.
Usually, culture is built on the philosophy, approach and preferences of the management team, as they must believe in and live the culture to drive it through the organization effectively. Nevertheless it is also important to consider the expectations of staff, customers and board members.
Your business environment’s impact on corporate culture
Consider the type of business you are building, the industry you will be a part of, and how such organizations are generally managed. Think about the work your startup will undertake:
- If the work is repetitive, a more structured, directive culture may be most appropriate
- If the work is more creative or exploratory, with highly educated staff, a flexible, collaborative culture may be desired
Consider industry standards as well. For example, if the industry is known for high salaries, excellent benefits or a serious commitment to training, make sure you consider how these may fit into your culture. This is especially important if recruiting will be difficult for the skills you need.
Management philosophy, personal style and corporate culture
Management philosophy and personal style are key drivers of an organization’s culture. Management needs to determine how it is most comfortable operating. A number of tools are available to help management understand their strengths, preferences and style. This helps to lay the groundwork for building a corporate culture.
In the absence of such tools, the following questions can help management define a culture where it can be most successful:
- Is the preference more directive or collaborative?
- Are managers comfortable “letting go” of operational or development tasks?
- Are managers more comfortable with a structured or flexible workplace?
- Do managers need to travel a lot, or will they be consistently in the office?
- Are questions and ideas encouraged?
- How important is collaboration to the business?
- How important is innovation to the business?
- Is the social environment formal or informal?
Staff demographics, preferences and expectations
You will need to consider who you want to attract to your team, and what team members will expect. Use the following questions as a basis for discussion. While some may seem petty, these issues can significantly affect company culture.
- Will team members expect to be consulted on decisions?
- Will they expect support for training?
- Will they expect flexible work hours?
- Will they expect to be paid for performance, or on an automatic scale?
- Will they expect the latitude to be creative and share ideas?
- Will they expect a clear hierarchy?
- Will they be driven by money and benefits, or more by the science, technology or cause?
- Will they expect to work closely with others or in a more isolated way?
- Will they expect to call management by their first name?
- Will they be more comfortable and productive wearing suits or t-shirts, for example?
- Will social activities be important?
Expectations of customers and the board of directors
While corporate culture is primarily an internal endeavour, it can affect customer relations and the perceptions of your board of directors. Take the time to consider how your customers and board members will perceive the culture you create and nurture.
For example, if your corporate culture were to support informal dress, first determine whether or not your customers would see that as unprofessional. You may need to strike a balance.
Another consideration could be that some board members might view a flexible, open, mobile environment as uncommitted and chaotic. In this situation, you would need to select board members who understood and supported your culture. Or you might need to adjust your corporate culture a little to ensure the board could see your team was indeed committed and working hard.
- Independent contractor agreement: Sample template
- Allocating stock options for an employee stock option plan (ESOP)
- Recruitment for startups: Screening job candidates
- Career planning and development: Meeting business and employee needs
- Job rejection letter sample for unsuccessful candidates