Company Culture: What is It and Why Does it Matter?

Learn everything you need to know about company culture, including what it is, why it's important, and how to create and maintain a positive workplace culture.

If you’re a CEO, COO, HR Manager, VP, or any other business leader, you’ve likely heard the term “company culture” thrown around quite a bit. But what exactly does company culture mean? Is it just an empty buzzword, is it something tangible, and does it really affect your business’s bottom line? You are not alone in asking these questions. 

》As stated by Deloitte , 94% of executives know that their company culture is important for business success, and it can give them a competitive advantage, but they weren’t really sure what it is or how to develop it.

To understand why corporate culture matters, and how it can be used to achieve your company’s goals, let’s take a closer look at what corporate culture is and how it works. 

What Is Company Culture?

Company culture is often referred to as the “personality” or “DNA” of an organization. It is the values, beliefs, mission, and behaviors that make up a company's identity.

》Companies with strong cultural identities tend to foster higher job satisfaction and better performance from their employees. (Harvard Business Review)

This shared identity shapes the overall employee experience, as well as provides guidelines for the way employees interact with customers and their team members. It also dictates how people go about their day-to-day tasks. A strong corporate culture can have a positive impact on employee morale, productivity, creativity, and ultimately the success of your business. A positive workplace culture is essential to help you attract top talent, foster collaboration between employees, and it will ultimately lead to higher levels of customer satisfaction, improving both your customer reviews and profits.

》According to Forbes, companies with a strong company culture saw a 4x increase in revenue growth.

Conversely, a weak or nonexistent corporate culture can cause employees to feel disengaged from their work, it can lead to toxic work culture, and employees will be less likely to deliver on customer expectations. No wonder executives all around the world are beginning to realize just how important creating and sustaining solid company culture really is!

Creating Corporate Culture 

The most effective way to create a strong corporate culture is to start at the top — first, establish leadership and culture alignment, then have your leaders share their expectations for behavior, communication, and performance. Once these expectations are established, do what you can to foster them in your workplace by incentivizing desired behaviors. (e.g., offer bonuses for outstanding customer service and reward values-based behaviors). 

Additionally, ensure that everyone in your organization understands the mission statement and core values of your company so they know what they're working towards each day. This creates a Purpose over the Paycheck type of culture. Once your core values are established, other elements of corporate culture can be developed such as reward systems for high-performing employees or recognition programs for outstanding contributions. 

Maintaining Corporate Culture 

The most important step in managing your corporate culture is to keep communication open between all levels of staff. Additionally, having regular team meetings or “town halls” can help foster collaboration among colleagues while ensuring that everyone remains informed about current goals and initiatives within the organization. Finally, providing feedback on performance regularly can not only help keep employees motivated but also give them an opportunity to voice their opinions on how things are going at work. 

Making Use of Corporate Culture 

Once you've established a strong and effective culture within your organization, there are several ways you can leverage it for maximum benefit. For instance, if customers consistently report positive experiences with your staff members then you know that your focus on creating a strong internal culture has paid off — use this knowledge to craft targeted marketing campaigns designed around highlighting these positive customer experiences! Additionally, you can use employee feedback surveys to measure employee engagement levels over time; if employee engagement remains high then chances are good that you're doing something right! You then have permission to ask your employees to leave positive reviews for you on places like, “Glassdoor, Indeed, and JobAdvisor”. 

In conclusion, every company should strive to create a positive atmosphere where employees feel valued and empowered to reach their full potential—and with the right strategy in place, this is definitely achievable! Just remember: a great company culture does not happen by accident. 

How We Can Help

Company culture is our top priority. In our flagship Leadership & Culture Shift program, we help companies build a more attractive culture, and shift from a toxic culture to a purpose-driven one. We have a 4 Step Process that positions your company for higher levels of purpose, performance, growth & impact, so you can finally have a workplace that people love. Contact us to learn more!

With the right focus and effort, over time, you'll be able to build an environment where everyone contributes ideas while also being held accountable for meeting higher standards of performance. Here’s to creating your Culture Shift! 

Betsy Allen-Manning | Founder, Corporate Culture Training Solutions