Lesson 26: Why Company Culture is Critical

Why Creating & Building a Scalable Culture is Critical

If there is one area of your business to invest in, it’s your culture. You’ve already learned that culture drives employee engagement, leading to greater employee productivity and a stronger business overall.

You’ve also learned that culture can be difficult to define and challenging to measure. Eighty-seven percent of organizations cite culture and engagement as one of their top challenges. With fuzzy metrics on the true effect of culture on the bottom line, it tempts many companies to focus their efforts somewhere else.

While executives are unsure of how to establish culture successfully, they keenly know of its massive value. In fact, 91% of executives believe improving their company’s culture would increase the company’s overall value. Yet only 15% of them say their company culture is where it needs to be.

One of the top thought leaders on culture transformation, Hung Pham, is someone we look to for helping companies form their own culture. Pham is the founder of Culture Summit, a conference that brings together hundreds of culture champions and thought leaders to share actionable insights and strategies on building culture from the bottom up.

Here are five key takeaways from research he and others have worked on recently.

1. Focus on people

According to Janelle Gale, VP of HR at Facebook, “To scale company culture, focus first on your most important product your people.”
The most valuable resource your company has is the people that comprise it. Yet, according to Gallup, only 32% of U.S. employees were engaged at work in 2015. As you recall in “Company Culture 101,” you need to make sure that your employees are the right fit for your team — that they feel like they belong to a community within your company.

For Facebook, this starts when a new employee comes on board. Gale says, “Each new person who joins the company goes through the same orientation program where they hear from our leaders, and we tell them: this is your company now. This is a signature moment that connects every new employee to Facebook’s mission, vision, values, and culture.” A warning though: you can’t just say it and not live by it — people can see right through that. What you’ll have on your hands then are disengaged detractors.

2. Define your brand story

You already know that your brand story is a powerful tool for attracting customers, but what we often miss is the fact it can even be a more powerful tool for creating culture. A brand story shapes how your employees see the company and their place within it. It gives them a purpose for what they do.

“Employees want to be part of the story of your company – so define that story through a common language as you grow,” says Dan Spaulding, VP of people & culture at Zillow Group. “Whether it is core values, company mission, or workplace norms, you have to intentionally make sure that people at all levels understand and embrace the concepts.”

He adds, “They can’t be words on a wall they need to start every meeting, anchor business decisions, and show up in your daily habits. Doing this well reminds your long-time employees of what they set out to do and helps your new employees feel confident they know how to navigate your culture.”

3. Establish a team mentality

Although composed of individuals, your culture should bring all your employees together and should encourage them to work as a team. It’s important that everyone does what’s best for the team and the company, especially when conflicts arise.

Tatyana Mammut, head of product at Amazon Web Services, believes that having a common vision keeps top leaders aligned.
When looking back at her own experience, she says, “We’ve learned how to disagree productively and keep our teams moving forward in a unified way, even when our experiences and perspectives clash. No matter what our individual interests are, it’s important to stay focused on a consistent culture in the face of fast growth, so the leadership must have a unified vision and a common set of values and principles.”

4. Reinforce company mission and values

As you grow and scale, it will become more important to reinforce the company’s mission and values. Even though you’ve created a mission and set values early on, it doesn’t mean that everyone knows what they really are at their core. From time to time, it’s worth it to restate company values and make sure that all your employees are familiar with them. It is also smart to make sure that the company’s mission and values are accessible and visible throughout the office. Just remember that the visual without the leaders embodying these ideals creates an immediate disconnect.

5. Keep culture consistent

As they say, change is the only constant. This is especially true of companies as they grow and evolve. Your culture needs to grow along with you. “While culture can and should be fluid, your company values should remain constant and consistent over time,” says Gina O’Reilly, COO at Nitro.

“Ultimately, your values will define your culture,” she continues. “Since culture is the sum of how your employees behave, the right talent and team are crucial to shaping a positive culture. Rather than seeking good ‘culture fit’ during the hiring process, which can mean different things to different people, focus on how prospective candidates align with your core values to ensure you’re making the best decisions for your business.”

6. Prepare for growth

“The core of great culture is your values and the stories you tell,” says Didier Elzinga, CEO at Culture Amp. “As you scale, one of the key things to do is make sure you listen to your people. Growing fast is hard and can lead to what we call the ‘Culture Crunch.’ One of these effects is how people adjust to changes in their role as the organization changes.”

Make no mistake — you will have to prepare for things to change as your company grows and scales. Let your culture guide you and your employees through the metamorphosis. “You can’t make your culture go up and to the right,” says Elzinga, “but you can peer around the corner and see what challenges await you, so you are better prepared for them.”

7. Be transparent and communicative

In a small company, it’s relatively easy to have good communication. Once you grow and several employees, it becomes increasingly difficult to maintain that communication and ensure that everyone is always in the loop. This is even further complicated when you add offices in different locations. So how do you make sure it preserves your company culture? Communication!
Consider having a channel of communication that keeps everyone in the know. Provide a fun and social element for employees to stay in touch.

Transparency is also key when promoting and scaling a good company culture. You can’t expect to have a positive and consistent company culture when employees are uninformed about all relevant information regarding the company. People want to know what they are working towards.

Provide feedback channels.

In line with communication, getting employee feedback is an important element in any business, and it is crucial to maintain this when scaling up. It becomes easy to lose touch when your company is growing and growing. Feedback channels are an excellent way to stay grounded and make sure you always know of all issues–and all positive things! You can hold weekly video meetings, send out surveys to get a pulse of things, and have regular social outings and activities.

Establish traditions.

Establishing company traditions works wonders for unifying all employees and can be a fun and social way to increase engagement. Traditions should reflect your unique company culture and contribute to fostering a positive and collaborative work environment. As you scale, employees will remember what your company is all about.

Summary

There are a lot of things to focus on as your company grows. Don’t forget that people will always be the most important. The relationships you create and the way you treat your people will say more about who you are than any press release or news article ever will. If you keep these things in mind, you’ll be well on your way to scaling in a way that allows you to keep your relationships and your company strong. Never forget who you are and what your original mission was.

Maybe consider an annual retreat and/or holiday celebration? Or a monthly social outing, like mini golf or bowling? Why not implement a “Fun Friday”? Really, anything that makes sense for your own company and culture as it grows, and transforms will work.