The failure and evident fall of giants like Enron and Satyam
in the recent past, to name a few, emphasizes the need for
an organization to cultivate and maintain a good corporate
culture. You might be asking, "What is the connection between
Enron, Satyam and corporate culture?" A valid question that
I will answer systematically below.
What is Corporate Culture?
Culture is a natural phenomenon that is created when a group
of individuals, who share a common purpose or goal, work together
to collaborate. It is created out of common thoughts, goals
and attitude that commonly exist within the group. This culture
creates dynamism and energy, propelling the group forward
with their shared sense of purpose.
When such culture presents itself in organizations, it is
known as organizational viz. corporate culture. Now there
are as many corporate cultures as there are organizations.
Some are good, therein creating accelerated employee performance
environments; while some are not so good, simply stifling
their employees' and companies' ability to achieve their true
potential.
A good corporate culture that encourages growth is powerful
and its manifestations are far reaching. It is the underlying
soul and guiding force within an organization that creates
attitude alliance, or employee loyalty.
What Are The Signs Of A Good Corporate Culture?
Some of the constituents of culture are easily visible, like
the dress code, titles, incentives, bonuses and the working
environment, to name a few. However, in my opinion, the manifestations
of culture are, in reality, much more than what is visible.
It goes far beyond that. The proper corporate culture lies
in the higher realms of values and beliefs. This is the most
vital aspect of corporate culture. It is invisible and intangible,
in the sense that it cannot be seen, but its incorporation
can only be felt. It is this element that can lead an organization
to its success or downfall.
This is the foundation for all actions and decisions within
a team, department, or organization. It needs to be sustained
and the energy harnessed for driving the organization forward.
If Kenneth Lay, ex-CEO of Enron, and Ramalinga Raju, ex-Chairperson
of Satyam, had conducted the transactions of their companies
with honesty and integrity and focused on the well-being of
their employees and shareholders, would the companies have
ended up in these disastrous and tragic situations?
What does an Optimized Corporate Culture Look and
Feel Like?
A group's culture is very dynamic. Culture is created and
constantly reinforced on a daily basis through various means
like interactions with customers, handling of commitments,
the tone of emails, and resolving conflict. It is the small
and seemingly unimportant indications that contribute towards
the creation and sustenance of good corporate culture.
How Can Good Corporate Culture Be Created And Sustained?
Creating and sustaining a healthy, vibrant culture requires
daily and proactive communications. The top-down approach
has to be used to instill the mission, vision and values to
all rungs of the organization. When leaders fail to use these
values in their decision making or employee-handling processes,
the culture that is created within the group is often confused
and unclear.
A winning corporate culture is the keystone for maintaining
the highest levels of employee satisfaction, customer loyalty
and profitability. For this purpose, the culture needs to
be instilled in the hearts and minds of the entire workforce.
An organization needs to encourage such good values and principles
for the common good of all.
As much as I insist that the leaders need to model the desired
values and principles, I also emphasize that the responsibility
of sustaining the culture needs to be vested upon every employee.
A firm sense of purpose needs to be instilled within every
employee – and this means going beyond fixing those
elements of culture that are clearly visible. This includes
surpassing the team lunches and parties and looking beyond.
I compare this with an ailment. Treating the symptoms of an
ailment without understanding the root cause will not heal
the ailment completely – it is most definitely going
to re-appear in full force. In a similar manner, none of the
actions that aim at diagnosing the surface and clearly apparent
problem would permanently make a positive and lasting impact
on an organization’s culture.
The most powerful method to bring about a good corporate
culture is through conversation. Conversations have the power
to make the invisible visible. It acts as the force that drives
and sustains the culture that is intended and created by the
founder and management of the organization. It extends beyond
the normal business conversations that generally take place
in a board room meeting. All business leaders have to be educated
on how to have powerful conversations that generate the desired
culture with all staff. This is definitely not rocket science
– all it takes is an honest commitment from the leadership
team of an organization.
Corporate culture is an unwritten value-set that management
communicates directly to employees. Below is a check list
that needs to be followed to create a good corporate culture:
Always remember that working towards a common vision requires
effort and energy that is harnessed in the right direction.
The case of the ants is a simple example. They work together
with immaculate precision, propelled by a deeply instilled
culture that helps them to successfully do the job that is
assigned to them.
Drive yourself forward with the right values and beliefs.
Associate yourself with good corporate culture. Every drop
makes up the ocean; it is possible to make a difference –
one step at a time.
This article was authored by Pramila Mathew, M.Ed, MBA, an executive coach who helps individuals, groups, teams and organizations find the right solutions in the workplace. MMM Training Solutions conducts soft skills training and executive coaching anywhere in the world. We guarantee the effectiveness of our training.
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pramila.mathew@mmmts.com
