What is an organizational culture and what exactly does it have to do with business? Organizational culture is generally the sum of norms, systems, communication, assumptions, goals, and beliefs. Developing the right type of culture to fuel your organizations growth and productivity requires careful thought and consideration. All organizations have culture, some are positive, and some are negative, but all cultures are the result of complex interactions within an organization. Organizational culture within businesses generally develops organically with or without thought or any specific planning, however with proper insights, communication, and systems, leaders can help develop and pilot their work cultures in the right direction.
Developing Staff and Communication
To build fantastic cultures, you first must hire excellent staff. This does not mean that you need a staff made up of clones, individuality and diversity makes for better cultures in the long run. You need to hire individuals based on skills and skill gaps across your organization. Also, you need to develop your staff in such a way that both their skills and communication will benefit the overall productivity of the company.
Companies like Toyota utilize a system of communication called “Horenso”, that embodies both their operational philosophy, but also dictates and defines their collective values built in their “TPS” production system. Horenso is an abbreviation of sorts for; Ho for hokoku, or report, Ren renraku, or contact, and So sodan, or consult. This system works for problem solving and feeds into creating accountability. It also allows for individuals and teams to understand other people’s projects, in a systematic and respectful way. This system of communication dictates how one communicates issues and problems with a positive feedback system.
Having reporting systems and a method of communication develops positive culture and ensures company values are maintained. With a proper method of communication like “Horenso”, you reinforce engagement and development of individuals and teams. Using horenso also, helps with teaching and developing individual and teams. Although horenso is just one way of communicating, using this type of feedback loop helps maintain a positive and productive company with a great culture. Companies must consider how they communicate with employees, if not it could lead to a negative organizational culture.
In addition to communication, identifying the right individuals for promotion or a position is key.
Through communication and a better understanding of staff companies can identify individuals best suited to step into leadership roles. Developing leaders takes communication first value-based system of respectful communication and feedback. Through this type of engagement and communication you are developing staff and building a better culture.
Leading by Guiding Principles
In addition to company goals, a sound company philosophy is needed to drive the creation of resilient and respectful organizational cultures in the workplace. This starts by developing guiding principles. First it is extremely important to understand your companies core purpose. What is your companies’ “reason” for existing, what are the core values? For example, at Microsoft they have the following values: innovation, diversity and inclusion, corporate social responsibility, philanthropies, environment, and trustworthy computing. At Microsoft, these serve as their guiding principles and they create goals and systems around these values.
The first step at any company is to identify their core values and articulate them. Only by taking these first steps can a positive culture develop and grow in a controlled way. After identifying and articulate them, companies have to “Live” them, every action a company takes should be funneled through their core values and they should be easily seen and demonstrated at every stage and place in the company. Whether it is the janitor, the warehouse worker, the CEO, or upper management, a companies core values should be living in the actions, decisions, and activity of all their workers. From, this a company can build on their goal setting and tracking via OKRs, etc.
Work-Life Balance
All companies want to their workers to be productive, however not all companies know how to get there in a way that puts employees and customers first before profits. All companies need to be profitable, but not at the expense of a customer or employees well-being. A culture that values an employee’s life as well as their work is putting both the worker and the customer, partners, and society in general first. Balance between work and life is an Olympic balance beam performance.
Understanding that pressures exist inside the company and outside the company for any individual is key. It is up to companies to find a way to maintain productivity while ensuring employees are not overworked or under appreciated. Creating policies or having systems in place to assist in this is crucial. Currently, at the time of writing this, the US is largely working form home with many parents without childcare facilities open.
This creates a hectic environment with pressures that would even test the fortitude of saints. A company should take a look at how to ease this transition in trying times, companies that mostly succeed under stressful times for employees and companies in general, already have organizational cultures built on trust and understanding. A company that is flexible and has a positive culture won’t break under pressures, a rigid culture will snap and collapse.
Best Practices
In closing, here are a few core principles that should be built into every company that wants to foster better organization cultures. Value integrity above all else. Do the right thing, and but your clients, employees, and customers first, before your own, because doing the right things benefits everyone including your company. Hire and promote people with integrity, even build this into your performance reviews and 360s. Be consistent don’t have different rules for different people. Values only have meaning if you are consistent.
Sometimes being consistent may be difficult, but companies must live up to what they say. Companies must be consistent if leader says they will do “x” then do “x”. Without consistency cultures suffer. Be open, honest, and considerate. Be honest and transparent is probably one of the kindest actions a company provide to their employees. It develops trust, demonstrates, integrity, and fosters a space communication. If you follow these examples, a company will be well on its way towards developing a better organizational culture.