Build a Corporate Culture That Works

This month an interesting article was published on HBR about Building a corporate culture that works. Below you can find an introduction on what the article is about

Effective management of corporate culture is crucial for achieving business success. However, many companies struggle to clearly define their culture in a way that truly impacts employee behavior.

1. Practical Scenarios: Instead of relying on abstract values like integrity and respect, companies should articulate culture through real-world dilemmas. This approach provides clear guidance on how to address common challenges faced by employees.

2. Actionable Culture: Culture should be actionable. By testing existing principles in real-life scenarios, companies can ensure they help employees make informed decisions. For instance, Amazon's "Have a backbone: Disagree and commit" principle offers clear direction on when to voice opinions.

3. Memorable Imagery: Use vivid, concrete images to describe culture. Amazon's "two-pizza rule" (teams should be small enough to be fed with two pizzas) is a striking example that helps employees remember and act on cultural principles.

4. Cultural Fit in Hiring: Hiring practices should align with cultural values. For example, Patagonia looks for employees who have a passion for the outdoors to ensure a strong cultural fit. It's essential to reinforce desired behaviors through hiring and firing decisions to avoid negative influences.

5. Culture as a Driver of Strategy: Culture should support strategic objectives. HubSpot's focus on adaptability and innovation informs hiring choices and empowers employees, creating a culture of continuous learning and flexibility.

6. Flexibility with Boundaries: Recognize that no culture can address all situations. There will be times when values like transparency need to be balanced with other concerns, such as individual privacy. Setting clear limits on cultural principles helps avoid rigidity.

In conclusion, culture acts as the personality of a group and should guide behavior through clear, actionable principles. Leadership plays a crucial role in modeling these values for the culture to thrive effectively. By emphasizing real-life challenges, vivid imagery, and strategic alignment, companies can cultivate a corporate culture that truly drives success.