Wednesday, November 21, 2018

How is a Corporate Culture Defined?


Corporate Culture is a funny thing.  It is difficult to describe, yet it’s importance is undeniable.  Many believe that a culture is defined from the top and for the most part I do not disagree.  When the culture is set from the top it has the most chance of surviving.  However, unlike a lot of things in business, a culture cannot be defined by decree.  A CEO cannot just say what the culture of her organization will be, instead she and everyone under her must reinforce the culture through their actions.  For this reason, cultures usually develop over time.  This also means, that a culture can change but that the process often requires a concerted effort and will take significant time.  This is why it is extremely important for all levels of management to enforce and reinforce the culture that you want within the organization.

One question I hear a lot is “can a culture be defined from the bottom up?”.  I believe it can, but only to the point that the leadership allows it to and supports it.  Culture often needs to be enforced when different things influence our behaviors.  Let’s take a look at an example.

Many companies want to implement a “Fail Fast” culture.  In a fail fast culture, the goal is rapid learning, experimentation, and avoiding analysis paralysis.  Companies that want to adopt an fail fast culture want these benefits in order to innovate and hopefully grow a solution that meets a need in a creative new way.  Failing in this case is seen as simply part of the journey, so better to get through it and learn the lessons as quickly as possible so that they can move on the successes.  But there is more to failure than just the learning and exploration.  Failure has a lot of negatives associated with it too.  For one, failure can be extremely expensive.  I often see these negatives creep into the equation of culture because they can influence people’s behavior away from the culture.  This is why leadership is required to build a successful culture.  Leaders need to combat the negative influences to the culture they are trying to build.  This is one of the most important responsibilities of leadership in modern corporations.    

When only some leaders are supporting the culture and upper management doesn’t correct the situation, micro-cultures can form.  Micro-cultures within an organization form when there is an insulated group that can define and enforce their own culture with minimal outside influences.  This is why, it is very difficult to create a successful culture without the very top of the organization being on-board. Each layer of management needs to be supported by the layer above.  These micro-cultures can have devastating effects on the overall morale of the work force.  Micro-cultures can be a breeding ground of resentment.

Culture in all of its forms, macro and micro, is defined through the actions of the people that belong to it.  Culture cannot be declared and only survives by keeping the outside or negative influences at bay.  Leaders at all levels must help reinforce a culture or it will not take root.  The protection and cultivation of the "right" behaviors and the correction and redirection of "bad" behaviors falls squarely on the shoulders of management.  So while culture can be started from the bottom, without the support of management it has almost no chance to survive.