Corporate Culture: Walking the Talk

By John A. Haas
Management Strategies Group

Most small business owners succeed because they identified a compelling niche product or service, took prudent risks and energetically focused efforts.

This Thing Called “Culture”

As employees are hired into various roles they learn “how things work around here.” These include operating policies and procedures, knowing what they can decide vs. get approval, risk-taking allowed or expected, in which people or functions the “power” resides, and so forth. These elements together contribute to defining the organization’s culture. It can’t be directly measured or seen, but it is ubiquitous and powerful.

By definition, every organization has a culture. It may be a consciously constructed set of norms, values and operating policies, or just evolve over time. New employees are indoctrinated into the culture. They may also influence the culture in ways that help or hinder progress, as they introduce accepted or encouraged behaviors from earlier work experience. Cultural shifts may happen without being noticed or intended.

All owner-managed businesses share one common characteristic: the entrepreneur defines and drives the organization’s culture. This is a fact, and need not be conscious or intentional. By its nature, the company is formed in the owner-manager’s image and reflects his or her values, behavior and management style.

Taking Hold of the Culture

As organizations grow, the owner-manager is forced to delegate more responsibilities. (Those that don’t or can’t are impeding growth.) With expanded scope, geographic presence and staffing levels, sub-cultures often develop. These are based on local leaders’ management styles; yet still operate within the larger corporate culture. This can produce variations in the “work ethic,” acceptable policies and procedures and perhaps the company’s image among customers, vendors or competitors.

To sustain growth, the owner-manager must change focus from hands-on decision maker to leader. (S)he becomes the chief cheerleader, marketer and “enabler.” The enlightened owner-manager will be visible to and support employees, taking pains to praise, mentor and especially celebrate successes. (S)he will encourage taking initiative and prudent risks in the interest of pursuing the mission and goals. Rewards will encourage and reinforce desired behavior and goal achievement. Company values will be defined, communicated and basis for taking action.

By consciously personifying these values in their daily behavior, the owner-manager reinforces and can continuously shape the desired culture.

Winter 2006 -Volume 17, Number 1

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