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Importance Of Corporate Culture

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Take Donald Trump, for example.



From all appearances, Trump seems to run a successful organization. The success of his companies, just as is the case with ANY company, has as much to do with the character of its leaders as its strategy. This character, referred to as its culture, is much more powerful than its strategy. It defines who the company is.

When a leader uses phrases to describe other people including "fat", "slob", and "ugly", it makes a strong statement to the employees of the company. This statement comes in two flavors.

One is the statement that is made to leaders of the company. In most cases, leaders of any group tend to emulate THE single leader. Leaders want to be included in the plans of the key person and will tend to follow that person's culture via their actions and words. In other words, they want to impress that key leader and what better way is there than to be like them? If the leader likes his or her self, they will certainly like others who are similar to them... right?

So it becomes easy to emulate that leader by talking like them. If it's okay for the leader to use these phrases, it must be okay for his followers to use them.

The leaders who don't feel comfortable in this culture will find a way to separate themselves from this talk, often leaving the company. They will be replaced by others who "fit in" with this kind of attitude.

This leads to the second statement, which is made indirectly to the employees, especially employees who sense that they fit into the categories being described unflatteringly by the leaders.

These same employees, many of whom are probably of high value to their organization, hear these comments which come from their leaders and begin to feel that THEY don't fit in the culture which the leaders are describing verbally. As they sense this lack of inclusion, they will similarly feel their lack of fitting in and separate themselves from others, again often leaving the company.

Can casual comments actually lead to such cultural changes? You bet. Take a close look at the adoration of employees of a charismatic leader such as Donald Trump. They watch every move, every comment, very closely, especially those with desire for upward mobility. They want to impress this leader, be "like him". Others within the organization want to be liked by their leaders.

Carefully study the heads of companies that you do business with or that you observe. Listen to the words of these individuals, watch their actions. You'll see that same attitude throughout the organization, from top to bottom. They will attract employees and managers with similar beliefs.

And if you like working for a name-calling, tough-talking company, I've got a suggestion for you.

(c) 2006, Ed Horrell. Reprint permission granted so long as article and byline are reprinted intact and all links made live.
Importance Of Corporate Culture
If you ask 10 people to define “organizational culture,“ you will get 11 different answers!

Fortunately, from my consulting and writing on leadership and organizational change, I created my definition of organizational culture:

“Corporate culture is how every employee knows she or he must act – even if no one is watching.”

Knowing your company's culture proves crucial for multiple reasons, including:

+ Only organizational changes that fit into your company's culture will succeed.

Changes not fitting into the culture will fail and not achieve desired results.

+ Hire employees who fit into the corporate culture. That is, “Do not try to fit a square peg into a round hole!”

Fastest Way to Uncover Your Organization's Culture

From my consulting experience, I devised a super-quick way to uncover an organization's culture: Discover the story all employees know and tell other employees. In fact, hearing the company's signature story is a right-of-passage for new employees. Hearing the story implicitly tells a new employee the actions and values the organization expects.

Here are two examples taken from my book entitled, Absolutely Fabulous Organizational Change™: Strategies for Success from America's Best-Run Companies.

1st Story: Ritz-Carlton-Hotel Company

Leonardo Inghilleri, senior vice president of The Ritz-Carlton-Hotel Company, told me this story often is repeated among his company's employees.

“Ladies & Gentlemen Serving Ladies & Gentlemen”

When he was 14 years old, Horst Schulze -- currently president of The Ritz-Carlton Hotel Company -- worked in as an apprentice waiter in a very fine restaurant in his native Germany. Initially, he saw himself as a “servant.”

Then, he realized the fine restaurant was staffed by highly skilled professionals. For example, he looked in awe as he repeatedly saw the maître d' chat with and entertain the diners. In fact, the maître d' spoke many languages. So, he spoke German to the German diners, French to the French guests, and English to the English customers. He also expertly helped diners with their food and wine choices.

From this experience, it dawned on Horst Schulze that a luxury establishment is composed of ladies and gentlemen serving ladies and gentlemen. He instilled this insight into The Ritz-Carlton Hotel Company where he now is president.

Ritz-Carlton's Culture

Company president Horst Schulze's experience gives rise to The Ritz-Carlton Hotel Company's customer care motto which precisely expresses its corporate culture: “We Are Ladies and Gentlemen Serving Ladies and Gentlemen.” Note: The company's culture perfectly dovetails with Ritz-Carlton's big, exciting, compelling vision: “Our key goal is to be the premier worldwide provider of luxury travel and hospitality products and services.”

2nd Story: Intuit

Brooks Fisher, vice president and general manager of Intuit's consumer internet business, told me Intuit's signature story is the following:

“Follow Me Home”

Scott Cook, founder of Intuit, was so focused on understanding and fulfilling the customers' needs that he invented “Follow Me Home.” He would go to a store where Intuit's software was being sold. Then, while a customer was buying Intuit software, he would ask if he could follow the customer home. At the home, he would watch how the customer installed and used the software.

Intuit's Culture

Given Intuit's story, what is the company's culture -- or main focus? Fisher says the story conveys Intuit's culture which is “The customer always is first.” And, as Fisher puts it, “That's how you win.” Note: The story also precisely meshes with Intuit's big, compelling vision: “Our key goal is to revolutionize how people do financial work.”

Hire Applicants Who ‘Fit Into' Your Company's Culture

You know it proves difficult to “fit a square peg into a round hole.” Likewise, companies need to hire applicants who ‘fit into' their organizational culture.

For instance, one company I consult to is ultra-customer service oriented with super-friendly employees. When we did benchmarking studies for this company with the Abilities & Behavior Forecaster™ Test – to customize the Forecaster™ Test to help hire the best – we discovered successful employees in every job scored high on two of the test's scales:

+ Helping People Motivation, i.e., customer service-orientation

+ Friendliness

Such customer service-focused and super-friendly employees ‘fit into' the company's culture, and prove most likely to succeed.

Message = Don't bet against your organizational culture when you aim to hire the best. Fortunately, you can do by:

1. benchmarking your “superstar” employees in each job – by having them fill-out a validated pre-employment test to discover their “benchmark” test scores

2. focusing on hiring applicants whose test scores are similar to your company's “superstar” employees' test scores

Now, You Can Uncover Your Organization's Culture

To discover your corporate culture, you simply need to uncover the story that

1. employees hear in their first week on-the-job and repeat to new employees

2. perfectly conveys how all employees must act – even when no one is watching!

Usually, the story is about the company's founder. It typically conveys insights and actions that lead to remarkable, profitable success.

© Copyright 2005 Michael Mercer, Ph.D.
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About Author
Both Ed Horrell & Michael Mercer are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ed Horrell has sinced written about articles on various topics from Management, Communications and Data Recovery. Join the "Kindness Revolution" created by Ed Horrell, a Memphis-based author, professional speaker and the host of the syndicated radio show "Talk About Service." Learn more about his books, keynotes and radio show at. Ed Horrell's top article generates over 5400 views. to your Favourites.

Michael Mercer has sinced written about articles on various topics from Management, Leadership. . Michael Mercer's top article generates over 1000 views. to your Favourites.
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