Corporate culture: what is it and how does it benefit you?

Kenneth Smit editorial | 18-01-2019

The concept of corporate culture is described as a pattern of norms, values, expectations and goals within an organization. Is that all, or is there more? What exactly does it mean, and what benefit do we get from it?

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We often talk about it, but we can't really put our finger on it: the corporate culture. We know that it affects the performance and therefore results of our company, but we do not know exactly how. The concept of corporate culture is described as a pattern of norms, values, expectations and goals within an organization. Is that all, or is there more? What exactly does it mean, and what benefit do we get from it?

The definition of corporate culture

For the term corporate culture There are many different definitions available. Ultimately, it is based on understanding culture. According to Geert Hofstede, who is internationally known in the field of cultural studies, culture represents the collective mental programming of a group or category of people, which distinguishes them from others. A group with the same norms and values. That is actually a very nice description with which we can explain the term corporate culture. A group feeling within a department or company that ensures better or worse performance than competitors who can and do the same on paper. The strength of the collective, which means that an on-paper mediocre team such as Leicester City can suddenly become champions of England. That's corporate culture. A strong corporate culture can ensure that the organization distinguishes itself from other groups with a different culture. So it is, as it were, the collective mindset of the company. A mindset of values, norms, rituals and symbols.

What good does it do us?

The results of your company depend largely on the prevailing corporate culture. The importance is therefore immediately clear. Unfortunately, many organizations still underestimate the phenomenon. Particularly because it falls under the 'soft' factors that are difficult to influence and define. Culture cannot easily be encompassed, included in guidelines or influenced. We have already mentioned the example of Leicester City. Trainer Claudio Renieri recently described the corporate culture within his team very aptly in a few words: 'we know that our quality is inferior to a large number of our competitors. The moment we think we are better than others, we are faced with a 4-0 defeat.' A wonderful description. We know our limitations and therefore fight for every meter. It is immediately clear which type of player will not fit within that culture (and therefore the team). It is not without reason that corporate culture is increasingly a reason not to hire applicants and even increasingly a reason for leaving. Young employees in particular are more likely to leave a company if they do not feel a match in terms of norms, values ​​and motivation. An application process is therefore becoming increasingly important. Not only to assess someone's intelligence through an assessment, but especially to match the 'soft' variables, such as corporate culture.

How do you recognize or build a strong corporate culture?

Does your company have a clear and strong corporate culture that contributes to success? To answer that question, it is first important to identify the prevailing culture and assess whether it meets the desired situation. A strong corporate culture can be recognized by a number of variables:

 Connecting management

Managers and leaders who set a good example and consciously support or even direct the corporate culture are of great importance. Managers who connect departments and people and put together their team based on complementary qualities and ambitions.

The 'we' feeling

If the Dutch team wins, then they are 'our boys'. We have won. But if they lose, THEY have done poorly. What is the language of your organization and between departments when things are not going well? If they still talk about 'we', then you are probably dealing with a strong corporate culture.

The team composition

A strong culture depends on the composition of the team and the mutual respect of the team members. People know and respect each other's strengths as well as weaknesses. Clashing personalities can greatly strengthen your team and culture, provided they can treat each other respectfully.

Business Improvement

What's your secret? How do you contribute to the corporate culture within your organization? Your employees form the dynamic connection between strategy, organization and culture. Our business improvement training can help you get the most out of your people and build a strong corporate culture.

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