What factors influence the organisational culture of a business? Here are six factors that are often cited as key influences on culture. Show
INFLUENCE OF THE FOUNDERThe influence of the founder of Ikea - Ingvar Kamprad - is perhaps one of the best examples of how organisational culture can be shaped by the founder of a business. Whilst a business may eventually grow to become a multinational, its culture is often formed or shaped by those who started it. The founders set the vision and core values of the business they create, which in turn shape how the organisational structure, rewards systems, approach to decision-making and more are determined. BUSINESS SIZE AND COMPLEXITYAs a business become larger and more complex, then it is perhaps inevitable that its culture is changed too. For example, a small or start-up business is likely to have a more informal approach to "how things are done". By contrast a larger, more complex business is likely to have a more formal approach to how things are done, including methods of communication, rules and procedures etc. REWARDSThe reward systems used by businesses can often be a significant influence on culture. For example, a business where employees are routinely paid through commission and/or performance-related bonuses might be expected to have a different approach to doing things than a business where employees are only paid a salary. As an example, the financial services industry is often held-up as an example of where rewards systems led to a strong culture of that encouraged excessive risk-taking. INDUSTRY / MARKETThis is linked to the influence of reward systems, since employee rewards are often based on the nature of the industry or market in which a business operates. Whilst most industries and markets are highly competitive these days, in some there is a different expectation as to how things are done. For example, some industries such as energy and pharmaceuticals are highly regulated, which therefore influences how decisions are made, what controls and checks are in place etc. In some markets, such as the creative industries, culture is shaped by the need to encourage creativity, innovation, team-work etc. ORGANISATIONAL STRUCTUREYou might ask - which comes first - the organisational structure or the culture? In reality, both influence each other! For example, a culture that is built on strong control from the centre will need different policies and controls compared with one where authority is distributed away from the centre. Similarly a business might develop quite informally into a structure with a flat hierarchy, where the organisation structure simply adapts to reflect the ways that the people in the business find works best. WORK ENVIRONMENTThere are many classic examples out there of work environments that have been deliberately designed to support the existing and/or desired culture. The famous Googleplex (the corporate headquarters complex of Google) and more recently Apple's new HQ are good examples. However, at a simpler level, the physical environment in which people work together must surely influence the culture at a business, not the least because of the impact on communication. Are functional teams housed in different parts of a building - or even different buildings? Are employees allowed to work remotely? Do staff "hot-desk" or do they have somewhere in the work environment to call their own? In each of my jobs before starting Blue Kite, I would look for ways to improve employee morale and strengthen the bonds of our team. At one company, I proposed group lunches in our conference room so we weren’t working through lunch alone at our desks. In another organization, I recommended a summer schedule to give our burned out team the chance to have every other Friday afternoon off. But, each of these recommendations fell on deaf ears and were never implemented. Why? Because they reflected my vision for what the culture should be instead of what mattered to the leaders of the organizations. Not only did I lack the power or authority to implement these ideas, but I also failed to get the necessary buy-in from the founder or company leadership. Why Founders Inspire Company CultureEvery company founder inspires the culture of the organization she creates – even if it’s unintentional. You see, when a business is created, the founder sets the rules. The founder makes decisions that reflects his values and beliefs. Everything from how the phone is answered to the way orders are filled for customers can reflect what matters to the founder. And while he might not have started the company with culture in mind, the founder launched his business to fulfill a vision. And that vision must be at the heart of what drives company culture. The problem is that oftentimes, company culture is created by default instead of by design. Company culture is often created by default instead of by design. Click To Tweet Although company founders may care about culture, they often lose sight of it as they focus on solving problems and growing the business. The story of Bullhorn’s culture is a great example of this. As the company grew, their culture got worse. They were more focused on building new products than focusing on their core offering. As a result, product quality slipped, customer support dwindled and long-time customers left. When Bullhorn’s very first customer said she was jumping ship, the CEO recognized he had a problem. So, he focused on getting back to the company’s original mission of creating an incredible customer experience. Everyone from the sales department to support team shifted their mindset to one of customer care. And the result? Since transforming their culture, Bullhorn’s growth rate has doubled and they’ve added 200 employees in the last year. Definition of Founder-Inspired CultureBullhorn’s story proves that culture is driven from the vision of the founder. When the founder’s focus shifts, so does the culture. That’s why when we help companies create or reboot their culture, we work with the founder. Essentially, company culture is a mirror for the founder. A founder-inspired culture reflects her strengths, beliefs, values and personality. It’s the embodiment of her vision for the company and it represents why the company exists. Essentially, founder-inspired culture gives companies the chance to create a culture that reflects the vision of the company’s creator – even if he is no longer there. Apple is the most famous example of this. Even though Steve Jobs is gone, his legacy, vision and values live on through the company. The key to this, of course, is to have a strong vision. Most of the time, founders know what they want their company culture to be deep down. It’s just a matter of identifying the qualities and attributes that are important to them. As a founder, it’s about getting back to your core “why” and remembering why you started the business in the first place. Unlocking your vision for the company is the key to creating an intentional, founder-inspired culture. Founders Must Communicate Vision to the TeamIdentifying the vision for your culture is a critical first step in creating a founder-inspired culture. But, that’s not enough. To truly create a founder-inspired culture, you must communicate your vision to the team. And, it’s not something you can do one time in a sweeping town hall meeting. Casting the vision for your company must be something you do daily throughout your regular communication with your team. We’ll be talking more about how to do this in the coming weeks. Got a question about how to communicate culture to your team? Leave a comment below and we’ll address it in our upcoming post. And don’t forget to subscribe so you’ll be the first to know when we talk about this! PrevPrevious5 Ways a Strong Culture Positively Impacts Your Business NextHow to Reinvent Your Company CultureNext Share This PostLaura ClickLaura Click is brand strategist, speaker, podcaster and the founder of Blue Kite. Learn more about Laura and her work at Blue Kite. Leave a Reply Cancel replyYour email address will not be published. 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Can you think of a firm whose culture is inspired by its founder founding members?Apple is the most famous example of this. Even though Steve Jobs is gone, his legacy, vision and values live on through the company. The key to this, of course, is to have a strong vision. Most of the time, founders know what they want their company culture to be deep down.
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