Leadership and Productivity

Vital Elements of an Effective Corporate Culture

by Asiyeh Attar

Corporate culture refers to the beliefs, values, behaviors and practices that influence how a corporation handle business and how the employees interact with themselves and customers. These beliefs and principles of management contribute to the distinctive social and psychological environment of the company. The culture of a corporation is as a product of factors such as the market, environment, technology and history. Corporate culture is not always clearly defined or expressed but implied and is developed over the years. It is expressed in dress codes, office hours, hiring decisions, teamwork skills and customer services. 


Elements of Corporate Culture

There are some certain characteristics that all successful corporate cultures have whether they were shaped intentionally or grown organically over the years. James Cole in Harvard Business Review identified six important characteristics of a successful culture.

  • Vision: A clear Vision and Mission statement is essential for a great corporate culture. The vision and mission statement entails what the company is about and from a simple vision statement to a comprehensive corporate manifesto or charter, the vision of the company inspires and affects the decisions the employees make. A good vision statement is a powerful tool and can help orient the customers, stakeholders and employees
  • Values: The company’s values are very important in guiding the day-to-day activities in the company. The core values offer the guidelines and rules that dictate how the employees behave and how business transactions are handled. For example, Google’s values are best described by their famous phrase “Don’t be Evil” and the ten things we know to be true
  • Practices: The practices are the methods through which the company implements its values guided by ethics. It is important that the corporation’s values are embedded in its practices
  • People: The people recruited by the company are those that can improve and reflect their culture overall and leaders who understand what is leadership. The people that should work in the corporation are those that share its core values and its vision
  • Narrative: A powerful narration also strengthens the corporation’s culture. A story like that of Steve Jobs and Apple inspires people and make a strong corporate culture
  • Place: The location of the corporation is also important in cultivating a strong culture because places shape cultures. Some architecture designs are better conducive to some office practices, for example, open offices foster a better relationship between employees than separate offices


How to Create an Effective Corporate Culture for your Business

According to James L. Heskett, corporate culture can account for 20% - 30% of the differential in corporation performance when cultured corporations are compared to their remarkably uncultured competitions. An effective corporate culture is important to improve your company’s performance, here are some tips to help in creating a good corporate culture.

  • You need a strong vision statement that best describes your business and inspires both your employees and your customers.
  • Create values that will guide your business well, make sure your vision reflects in your values. Ensure everyone knows and understands the values
  • It is important to practices the company’s values, doing this will help strengthen the culture
  • Recruit talented and smart people that reflect and can improve the company’s culture. Make sure they are screened well before hiring.
  • You may need a strong narration that can inspire your employees, stakeholders and customers. The story that best does this is how the corporation was formed.
  • Effective communication is also very important to create a strong culture
  • Establish teams and ensure employees understand the importance of teamwork.


Benefits of Great Corporate Culture

  • A good relationship between workers such that they will be able to exchange constructive criticism.
  • Increase in the employee’s productivity. Employees are happy to work in a conducive environment, this will increase their performance and work-life balance.
  • This will, in turn, lead to an increase in the company’s productivity. There will be an improvement in how the employees handle business.
  • Better customers’ services. A great culture helps improve the company’s interaction with their customers.
  • A good corporate culture informs you of how to motivate your team and how to be successful and productive at it.



Written by Asiyeh Attar

Junior Copywriter at Ubrik Media.

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