Experts agree that organisational culture is the key to a company’s success. But what exactly is organisational culture, and what purpose does it have in the day-to-day running of a business? Here, we’ve created a guide to tell you more about the concept, and to explain how having a good or great organisational culture could help to give your business a boost.
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Strictly speaking, there is no one set definition for the term “organisational culture”. Over the years, a number of different investigators have drawn their own conclusions, but each of the most famous studies focuses on the idea that organisational culture is the development of certain group behaviours over time and basic assumptions that help to guide and inform an organisation.
In short, organisational culture is a collection of values, ideas, practices and expectations that your company follows. These factors help to make your company what it is, and should be demonstrated by your team members in order to improve performance in the workplace. Doing this can also lead to an increase in your reputation among your customers and client base.
You shouldn’t, however, confuse the idea of culture with your company’s goals or mission statement. Both can help you to define it, but culture is created through authentic behaviour, not simply a good press release or well-thought-out policies. How your boss responds to a crisis in your company or its wider industry, how your team adapts to changes in customer demands, or how your manager corrects another employee after they make a mistake are all examples of how you may see your company culture in action.
Some companies may attempt what is commonly known as “lean implementation”. Part of this involves implementing a lean culture, which also varies in terms of definition and concept. In some cases, the primary focus of implementing lean culture will be to improve a company’s processes. In others, it may include increased respect for employees as well.
In any and all cases, the core principle will remain the same, which is that lean culture is a culture of learning, with an overall aim of continuous improvement that’s driven by customer focus.
As there is no set definition or meaning for the term “organisational culture”, there is also no one set way of measuring it. However, there are some established theoretical frameworks that have been developed to understand company culture.
The Denison culture index, for instance, defines four traits of organisational culture which can more easily be measured:
Having a great company culture is key to running a successful business, and how this works will all depend on your team. Workplace cultures vary from company to company, but the ones which work best are the ones that align with the values of the employees. When workers feel like they can align with the culture of a company, they’re more likely to feel comfortable, supported, and valued. They’re also more likely to feel respected, and able to speak up and share problems that they may be experiencing.
Organisational culture also plays a huge role in attracting new talent to your business, and for outperforming your competition where necessary. According to a study conducted by Glassdoor, 77% of workers across the UK, France, Germany, and the United States would consider how good the corporate culture of a firm is before applying for a job. It’s also been found that more than half of a workforce would be willing to leave their current positions for a lower-paying job if they found an organisation with a better culture.
Having a good or great organisational culture in your workplace is also one of the top indicators of satisfaction within a business, and is the reason almost 65% of workers stay in their jobs.
Every company has its own unique culture, and you should never be in doubt about keeping your company ethos just the way it is to stay true to your brand. However, there are certain qualities that you may wish to cultivate within your firm, as these are shared by corporations with consistently high-performance levels. These qualities include:
Carefully managing organisational change is of paramount importance for any firm, because if it fails this can have a great impact on the market position, engagement, and retention of employees. There is always a possibility that a cultural shift in your firm will result in failure, as there are a number of pitfalls and problems that have to be avoided or resolved before a successful change occurs.
A few practical solutions which may help you to change or build on your company culture include:
There are also several “dos” and “don’ts”, which may apply to management teams and leaders in a working environment:
If your own business is growing in size and could soon require a new address to comfortably accommodate your team and any equipment, get in touch with us today. We are fully prepared to offer you a new, stylish office space at one of our London locations, and as each of our offices are unique in personality and aesthetics, we’re confident that we can help you find a location that suits your company’s culture.
You’ll never have to worry about costs with our service, as all our rates are transparent across our tenancies. As these tenancies are also flexible, you will even be able to change location and receive a new address for your office if your firm suddenly requires more room.
Contact our team today and we’ll do everything we can to help your business become the success you know it can be.