Guide to Developing a Positive Company Culture

Company culture is more than just a buzzword; it’s the heartbeat of an organization. It shapes how employees interact, collaborate, and thrive within the workplace. An example to assess this is Lenovo’s 5 phase approach to its culture efforts.  

The company first collected data on the individual cultures and then evaluated the data to understand its cultural strengths, potential clashes and opportunities. Next, the organization focused on action planning and moved on to reinforcement.  

In this blog, we will look into what company culture is, why it is important, and how to evaluate it. As we move further, we shall share a few case studies on company culture.  

What is company culture?  

Company culture refers to the set of shared values, attitudes, goals, and behaviors that define a workplace. It's essentially the personality of the organization. Unlike a mission statement, which is a formal declaration, culture is the underlying current that shapes how employees interact, make decisions, and approach their work. 

Examples of companies with great company culture: 

The examples of companies with great company culture are:  

1. Google 

Google is known for its innovative and creative company culture. It values open communication across all levels and encourages employees to work in spaces that stimulate their imagination and productivity. Google also prioritizes talent preservation by offering financial assistance and opportunities for mobility within the company. 

2. Netflix 

Netflix promotes a culture of freedom and responsibility, where employees have significant decision-making authority. They also encourage candid and direct communication, with the concept of 'Informed Captains' being pivotal for major decisions. 

3. Zappos 

Zappos believes that if you get the culture right, everything else will follow naturally. They focus on hiring employees who embody the company's mission and values. Trust in teams remains paramount in Zappos' culture and operations. 

4. Patagonia 

Patagonia encourages employees to showcase their diversity and individuality, giving them autonomy over their work. This freedom makes employees more likely to stay with the company for decades. Patagonia also gives employees time off to support community causes and prioritizes the well-being of its employees. 

5. Dow Chemical 

Dow Chemical fosters a culture of collaboration by providing opportunities for scientists to regularly come together and discuss projects and challenges. They also allow manufacturing employees to have flexible work schedules through their "Design Your Day" policy. 

Why is company culture important?  

Company culture plays a vital role in the success and well-being of both an organization and its employees. Here's a breakdown of why it holds so much importance: 

1. Attracting and retaining top talent: 

Attracting and retaining top talent is one of the key aspects of building a strong and positive company culture.

• Employer branding: A strong culture acts as a magnet for qualified candidates who identify with the company's values and mission. It creates a positive reputation in the job market, making the company more attractive to potential hires. 
• Employee satisfaction: People are more likely to stay with a company where they feel valued, respected, and a sense of belonging. A positive culture fosters job satisfaction and reduces turnover rates, saving the company time and money on recruitment. 

2. Boosting productivity and performance: 

Employees’ performance and productivity tends to rise when an organization prioritizes building a positive company culture.  

• Motivation and engagement: When employees feel connected to the company's goals and share its values, they're more likely to be motivated and engaged in their work. This translates to higher productivity, better problem-solving, and a drive for excellence.  

• Collaboration and teamwork: A strong culture emphasizes collaboration and teamwork, which can lead to better communication, knowledge sharing, and innovation. Employees are more likely to help each other out and work towards shared objectives. 

3. Enhancing customer experience: 

• Employee happiness: Happy and engaged employees provide better customer service. A positive culture translates to a more positive and helpful attitude towards customers, ultimately leading to higher customer satisfaction and loyalty. 
• Brand advocacy: When employees believe in the company's mission and values, they become brand advocates. They're more likely to go the extra mile for customers and promote the company positively. 

4. Overall business success: 

• Reduced costs: Lower employee turnover, higher productivity, and a positive brand reputation all contribute to a company's bottom line. A strong culture can lead to significant cost savings and improved financial performance. 
• Adaptability and innovation: A culture that encourages open communication, embraces new ideas, and fosters a willingness to learn can help a company adapt to change and stay ahead of the curve in a competitive market. 

How to establish a good company culture? 

Establishing a good company culture is an ongoing process that requires commitment from leadership and employees alike. Here's a roadmap to guide you on this journey: 

1. Define your ideal culture 

• Vision and Values: Start by reflecting on the company's vision and mission. What kind of work environment do you want to create to achieve those goals? Identify core values that will guide behavior and decision-making. Involve employees in this process through surveys, workshops, or focus groups.  

• Desired workplace environment: Consider the kind of atmosphere you want to foster. Is it collaborative and innovative, or results-oriented and fast-paced? How do you want employees to interact with each other and with leadership? 

2. Assess your current culture

• Employee feedback: Conduct surveys or hold focus groups to understand how employees currently perceive the company culture. Identify areas of strength and areas for improvement. 
• Leadership behavior: Evaluate how leadership embodies the company's values. Are their actions aligned with what they preach? 

3. Bridge the gap 

• Develop action plans: Based on the gap between your desired and current culture, create action plans with specific, measurable goals. This could involve implementing new policies, revamping communication channels, or providing leadership training. 

4. Foster open communication 

• Transparency and trust: Create a culture of transparency and trust where employees feel comfortable sharing ideas and concerns. Encourage open communication from the bottom up, and ensure leadership is actively listening and responsive to feedback. 
• Regular communication channels: Establish regular communication channels to keep employees informed about company goals, progress, and changes. This could be through town halls, internal newsletters, or an open-door policy with leadership. 

5. Hire for culture fit 

• Values-based hiring: When recruiting new talent, prioritize cultural fit alongside skills and experience. Look for candidates who share the company's values and will thrive in the desired work environment. 

6. Onboarding and development 

• Cultural integration: Onboarding is a crucial time to integrate new hires into the company culture. Provide clear communication about company values, expectations, and norms. 
• Invest in development: Offer opportunities for professional development that align with your company culture. This might include training programs on communication, teamwork, or leadership skills. 

7. Recognition and rewards 

• Celebrate wins: Recognize and reward employees who exemplify the company's values and contribute positively to the culture. This can motivate others and reinforce desired behaviors. 
• Focus on impact: Move beyond just rewarding results and celebrate the behaviors and actions that contribute to a positive culture. 

8. Lead by example

• Leadership commitment: Leadership plays a critical role in shaping company culture. Leaders must be committed to the company's values and embody them in their own actions and decisions. 

9. Continuously monitor and adapt 

• Regular feedback: Regularly gather feedback from employees through surveys, focus groups, or anonymous suggestion boxes. This helps you identify areas where the culture is working well and areas that need improvement. 
• Adaptability: Remember, company culture is a living thing. Be prepared to adapt your approach as the company grows and evolves. 

How to evaluate a good company culture?  

Evaluating company culture is like solving a puzzle. You need to gather various pieces of information to get a complete picture of what the work environment is truly like. Here's a breakdown of how you can approach this assessment: 

1. Research the company: 

• Mission statement and values: Start by examining the company's website and social media presence. Does their mission statement resonate with you? What values do they claim to hold? This provides a starting point to understand their intended culture. 
• Benefits and perks: Look at the company's benefits package and advertised perks. Do they prioritize work-life balance with flexible work arrangements or generous vacation time? Or is the focus on long hours and intense competition? These offerings can provide clues about the overall work style. 
• Company awards and recognition: Has the company been recognized for its culture in awards or publications? While not a definitive measure, positive recognition can indicate a focus on employee well-being and a healthy work environment. 

2. Online reviews and ratings: 

• Employee review sites: Take some time to read employee reviews on platforms like Glassdoor or Indeed. While negativity can be amplified online, these reviews can give insights into employee experiences, work-life balance, and management styles. Look for recurring themes and identify both positive and negative aspects mentioned by current and past employees. 

3. Social media presence: 

• Company posts: How does the company present itself on social media? Is the tone formal and professional, or more lighthearted and casual? Do they showcase employee achievements and company events? Social media posts can reveal aspects of the company culture beyond just the work itself. 
• Employee engagement: How do employees interact with the company's social media content? Do they like, share, and comment on posts? High employee engagement can suggest a sense of pride and connection to the company. 

4. Reach out to your network: 

• Informational interviews: Do you know anyone who currently works at the company you're interested in? If possible, reach out to them for an informational interview. This is a great way to get a firsthand perspective on the company culture from an insider's point of view. Ask questions about teamwork, communication styles, and overall employee morale. 

5. Dig deeper during the interview process 

• Behavioral interview questions: During the interview process, pay attention to the types of questions asked. Behavioral interview questions that focus on past experiences can reveal how the company values collaboration, problem-solving, and communication. 
• Company culture questions: Prepare your own questions about the company culture. Ask about opportunities for professional development, work-life balance, and how they handle disagreements within the team. 
• Pay attention to interactions: Observe how you're treated throughout the interview process. Are the interactions professional and courteous? Does the company seem transparent and forthcoming about the role and expectations? 

Remember: Company culture is multifaceted. While online research and reviews are helpful, they don't provide the full picture. If you get the chance to interview for a position, be mindful of these aspects: 

• Interview questions: The types of questions interviewers ask can reveal the company's priorities and how they value their employees. 
• Interactions with staff: Pay attention to how employees interact with each other and with you during the interview process. Is the atmosphere friendly and collaborative? 

By combining your research with a keen eye during the interview process, you'll be well-equipped to evaluate a company's culture and decide if it's a good fit for you. 

Case studies  

1. Pepper Money  

Pepper Money, a specialized mortgage lender acquired Optimum Credit in 2012. Due to Covid and other reasons, the company wasn’t able to fully complete its M&A (mergers and acquisitions). 

Problem: 

• Being in different operation models, service offerings, and cultures, the company faced concerns in ensuring their M&A is a success.  

Solution:  

• Utilized a 3-stage culture change methodology – insight, design, and embed.  
• Designed a bespoke culture assessment framework.  
• Gathered insights on culture dynamics through surveys, interviews, and focus groups.  

Results:  

• Town hall satisfaction increased from 7.5 to 9.5 out of 10. 
• 98% of employees found the team-based embedding sessions extremely valuable to their team.  

2. Essity – a Swedish hygiene and health company  

Essity is a leading global hygiene and health company dedicated to improving well-being through innovative and sustainable solutions. 

Problem: 

• Articulate and define the culture of the company aligning with its strategic plan to go public  

Solution:  

• Worked with company leaders to find a new competitive environment  
• Gathered feedback from 8 focus groups including employees from various countries to identify themes and concerns relating to its old company culture.  

Results:  

• The final articulation of core company values was set – care, collaboration, commitment, and courage.   
• Based on the set core values, the organization explored ways to help business units bring the new company culture get going.  
• Practicing new values and behaviors as individuals and as a team. 
• Creating a culture of transparency.  
• Communicating values through storytelling and anecdotes. 

How does Empuls help an organization adopt a good company culture? 

Empuls is an employee engagement platform designed to foster a positive company culture, which can become a competitive advantage.  

A. Fostering a culture of feedback 

• Feedback: The company builds a listening culture through high-quality employee surveys that seek continuous feedback. 
• Measurement: It helps assess employees' perceptions of core values, workplace culture, and relationships. 
• Analysis: The organization derives key insights into peer relationships, cultural dynamics, and hierarchies. 

B. Building a culture of belonging  

• Communication: By promoting open communication, the employee engagement platform fosters a culture of transparency. 
• Connection: Using a social intranet, it enhances a sense of connectedness. 
• Collaboration: It drives community culture by encouraging organic conversations and engagement. 

Conclusion 

Developing a strong company culture re-structures an organization to provide an eco space where employees are valued and taken good care of. A company needs to foster clear communication of values, consistent leadership, and offering an inclusive environment. 

Evaluating company culture involves regular feedback, measuring alignment with core values, and analyzing the impact on employee satisfaction and performance.  

By prioritizing company culture, organizations can create a thriving workplace where employees feel valued and motivated. This, in turn, translates to a competitive advantage, as a positive culture attracts top talent, reduces turnover, and drives long-term success.  

Whether you're just starting to build your company culture or looking to refine and strengthen it, remember that culture is an ongoing journey that evolves with your organization. Embrace it, nurture it, and watch your company flourish.