Company culture has increasingly become the cornerstone of successful businesses, acting as the backbone of an organization’s identity and its operational ethos. In today’s rapidly evolving workplace, fostering a robust company culture is not just a luxury but a necessity. A study by Deloitte underscores this, revealing that 87% of organizations view culture and engagement as one of their most significant challenges. This is hardly surprising given that strong company cultures, while challenging to build, are unmistakable in their presence and impact.
The essence of a vibrant company culture lies in its ability to unite employees under a shared sense of identity and purpose. It is the glue that binds the workforce, guiding behaviors, decision-making processes, and the overall direction of the company. Drawing on insights from successful organizations, here are the seven pillars that form the foundation of an influential company culture.
1. Shared Jargon and Norms
Company culture is often manifested through unique behaviors, phrases, and operational norms adopted by the team. These shared elements enable quick understanding and alignment on processes, expectations, and values. Amazon’s differentiation between Type 1 and Type 2 decisions exemplifies how shared jargon can streamline decision-making and reinforce cultural identity.
2. Trust in Skills and Intention
Trust is the cornerstone of effective teamwork. It fosters an environment where ideas flourish, performance enhances, and innovation thrives. Adobe exemplifies this through its culture of open communication and feedback, ensuring employees at all levels feel valued and trusted.
3. A Healthy Dose of Conflict
Contrary to the negative connotation often associated with conflict, safe and constructive disagreement is indicative of a strong and healthy company culture. It allows for diversity of thought and creativity, paving the way for excellence. Amazon’s Disagree & Commit rule illustrates how embracing conflict can contribute to trust and innovation.
4. Shared Values
Alignment on core values ensures that everyone is working towards the same goals. This alignment is crucial for collaboration and productivity. Companies like Zappos highlight the importance of shared values by ensuring that new hires are a cultural fit, further emphasizing their commitment by offering new employees the option to leave if they feel disconnected from the company’s mission.
5. Freedom to Make Mistakes & Take Risks
A culture that penalizes failure stifles growth and innovation. Encouraging employees to take risks and learn from mistakes creates a psychologically safe environment where they can perform to their best ability. Promoting a relationship with failure, as encouraged by entrepreneur Jeff Stibel, enhances psychological safety and fosters a culture of continuous improvement.
6. An Ownership Mentality for Everyone
When employees feel personally invested in the success of the company, engagement and productivity soar. Netflix’s metaphor about picking up trash illustrates the significance of fostering an ownership mentality, encouraging everyone to take responsibility and act in the best interest of the company at all times.
7. Practices That Easily Spread the Culture to New People
A strong culture not only retains its strength within the current team but also spreads organically to new members. Documentation and sharing of the culture through accessible means, such as Zappos’ culture book or Netflix’s culture deck, ensure that the culture is easily communicated and reinforced among all employees.
Building a strong company culture is an ongoing process that requires deliberate effort and commitment. It is dynamic, evolving with the company and its people. By anchoring a company’s operations and strategies in these seven pillars, organizations can create an environment where employees are engaged, productive, and aligned with the company’s mission and values. This not only leads to immediate benefits in terms of morale and efficiency but also positions the company for long-term success in an ever-changing business landscape.
