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An effective corporate culture creates an environment where a company and its people can thrive. The problem has always been in accurately defining culture in order to manage its component characteristics for strategic advantage. (Difficult stuff!)
To help get a better handle on culture, in part one of this article I offered a characterization of culture based on its strategic significance: Corporate culture can be thought of as the series of employee beliefs, attitudes and modes of behavior that collectively define a company's character and which determine its ability to achieve optimal operational efficiencies and sustainable growth.
But what specific "employee beliefs, attitudes and modes of behavior" mark cultures that are able to spawn substantive and enduring growth? In short, what makes an effective, high-performance culture? Three Key Traits of Effective Cultures
Based on my recent book research and consulting work, there appear to be three core traits common to effective cultures. Let's look at each one. 1. There is clarity of vision, mission and values among employees throughout the enterprise. In productive cultures, all workers understand what is driving the organization strategically. Employees recognize what the firm's strategic priorities are, what its competitive differentiators are, and how it is positioned in the marketplace vis-à-vis competitors. Understanding where their company is now, and where it's heading, helps managers at all levels better deal with the company's stakeholders: customers, suppliers, business partners, etc. Beyond vision and mission, a strong value system is central to effective cultures. When employees genuinely embrace the ideals on which the firm is based, they approach their day-to-day business dealings and relationships productively and positively.
2. Employees at all levels understand their individual and inter-dependent roles in attaining the corporate vision. Effective cultures are marked by coordinated, team-based interactions. Employees in different departments and business units work in sync to complete tasks and to advance growth and process improvement objectives -– furthering the corporate vision. Consider the simple process of handling a customer complaint. In dynamic cultures, a customer service representative knows that a significant product complaint received from a buyer must be immediately communicated through the organization. The rep knows to alert sales. The sales manager knows to contact marketing. The marketing manager recognizes the need to possibly alert manufacturing operations or finance. By their nature, all corporate functions are linked. In effective cultures they are tightly linked. Employees recognize how their function interfaces with others throughout the enterprise, and they coordinate their efforts accordingly. Tying back to point No. 1, understanding what business philosophies are driving the company's mission helps employees coordinate their efforts and energies.
3. There is strong alignment between employee attitudes and strategic goals and objectives. This is a key characteristic of high-performance cultures. When people feel that their individual objectives (i.e., personal, professional, lifestyle) are being advanced in their current job, they are more likely to have positive attitudes and be productive and loyal. To forge effective cultures, leaders must periodically assess the link between valued employees' job responsibilities and their personal and career objectives. Do those employees feel they're on a solid track? Do they feel they're advancing in terms of knowledge and experience and personal growth? When people do not feel that their current jobs are putting them closer to their future objectives, they get frustrated. With frustration comes angst and an incipient inclination to look elsewhere in pursuit of their personal goals.
Communication: The Common Denominator
There is a common thread running through each of the aforementioned cultural issues: communication. Focusing on the three key traits from a communication perspective can help leaders determine whether or not theirs is a productive corporate culture.
Clearly, every corporate culture is different. Each one possesses its own defining nuances. In a sense, the three key traits are not descriptive characteristics as much as they are crucial conditions to foster growth and operational excellence.
One thing is clear. People spell the difference between profitable and unprofitable companies. The fact that culture is decidedly people-oriented underscores its importance in ensuring corporate success.
Return to Growing Concerns for more articles by Mr. Clemente.
MARK N. CLEMENTE consults with companies and professionals in the areas of sales and marketing, organization development, and leadership. A former director of communications for Coopers & Lybrand, he is the author of four books and dozens of journal articles on management development and corporate growth. His clients have included professionals from Big Five and middle-market accounting and management consultancies, as well as Fortune 500 companies. Mark speaks worldwide before professional and academic groups, and holds a master’s degree in strategic communication and leadership. Visit his firm’s website at www.clementeonline.com or contact him at mark@clementeonline.com or by calling 201-444-9830.
2002 SmartPros Ltd. All Rights Reserved.
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