15 min
- Why Company Culture Matters Now More Than Ever
- Building the Foundations of a Resilient Culture
- Scaling Culture in a Growing Organization
- Employee Engagement: The Lifeblood of Company Culture
- Navigating Global Cultures: Balancing Standardization and Local Adaptation
- Sustaining Culture Through Change
- Leadership's Essential Role in Shaping and Sustaining Culture
The concept of company culture has evolved from being a mere buzzword to a critical determinant of organizational success. According to a report by PwC, 67% of executives prioritize company culture over their organization’s strategy or operating model. Another study found culture is the best predictor of employee satisfaction, ahead of compensation and work-life balance.
When done right, culture becomes a force that propels an organization forward, driving employee engagement, productivity, and long-term success. But building and sustaining such a culture takes intentional effort. Let’s break down what it takes to create a dynamic, thriving company culture.
Why Company Culture Matters Now More Than Ever
Culture isn’t just a set of values written on a wall; it’s how those values are lived every day. In fact, a study found that 73% of employees believe building meaningful connections with colleagues is crucial for their success at work.
Building a company culture isnt about crafting a set of guidelines; instead, it is rooted in shared values that act as a unifying force. Leaders play a key role in consistently modeling and upholding these values, creating a culture that employees truly embrace. Leaderships ability to live out these values influences not only their teams but the entire organization. This organic development of culture ensures a natural integration of the companys mission and values.
A strong culture fosters this connection, helping employees feel more engaged and motivated. Without it, organizations risk becoming places where people just go through the motions—hurting productivity, innovation, and overall success
Building the Foundations of a Resilient Culture
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The Power of Shared Values
At its core, culture starts with shared values that unify and guide the entire organization. But these values are not meant to be just aspirational. It’s the responsibility of leadership to embody these values through their actions. Employees are far more likely to embrace a culture that is lived by their leaders, rather than one thats just stated.
When leaders live the culture, it ripples throughout the organization. It becomes less about enforcing rules and more about setting an example that others naturally follow. Over time, this organic approach builds a culture that is not only strong but resilient, adapting as the company grows.
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Empowering Employees to Own the Culture
While leadership sets the tone, culture-building is not a top-down process. Employees must feel empowered to own and contribute to the culture themselves. When employees take an active role in shaping culture, they feel a greater sense of belonging and responsibility.
Encouraging open feedback, creating spaces for employees to share their thoughts, and recognizing individual contributions are all ways to foster this shared ownership. When employees see that they have a voice and that their input matters, it strengthens their connection to the company
A thriving company culture is characterized by high employee engagement. This is achieved by prioritizing a space where employees feel valued, heard, and motivated to excel.
Engagement is not a one-time fix, but a continuous journey. Consistent communication, recognition for achievements, and opportunities for professional growth are essential drivers of engagement. Creating a psychologically safe environment where diverse perspectives are valued is crucial. Empowering employees to take ownership of their work and aligning individual goals with organizational objectives also contribute to increased engagement.Ensuring focus on inclusivity is another way of creating a sense of belonging. This goes beyond embracing diversity in backgrounds and experiences. Creating a psychologically safe space for open expression of diverse voices is paramount. When employees feel valued for their unique perspectives, they are more likely to be engaged and committed to the organizations success.
Scaling Culture in a Growing Organization
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Culture in Startups vs. Scaling Enterprises
Culture can often emerge naturally in smaller companies where everyone works closely together. But as organizations grow, maintaining that initial sense of culture requires more deliberate effort.
Systems and processes are necessary to reinforce cultural values at scale. However, these systems should be flexible enough to allow for organic growth. Over-systematizing culture, as cautioned by Harvard Business Review, can lead to stifling the very innovation and engagement that culture aims to promote. Finding the balance between structure and flexibility is key.
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The Crucial Role of Middle Management
Middle managers are the bridge between leadership and frontline employees. Their role in reinforcing company values day-to-day is pivotal. Middle management needs to be equipped, empowered, and aligned with the culture to ensure its consistency across all levels of the organization.
Investing in the development of middle managers is essential. Mentorship programs, leadership training, and providing autonomy are great ways to ensure they have the tools to lead effectively while fostering a culture that’s inclusive and empowering.
To further empower middle managers and ensure they are aligned with the company’s culture, consider implementing the following strategies:
Pair middle managers with experienced leaders to provide guidance and support.
Offer development programs focused on cultural values, communication, and decision making.
Grant middle managers greater decision-making authority within their areas of responsibility.
Employee Engagement: The Lifeblood of Company Culture
Engagement is the most visible sign of a thriving company culture. When employees are engaged, they’re not just doing their jobs—they’re fully invested in the success of the company. Gallup research shows that highly engaged teams are 21% more profitable, and engagement directly links to productivity, retention, and overall morale.
The Role of Communication
Effective communication is the bedrock of engagement. Leaders who maintain an open line of communication with their teams build trust and transparency. Regular updates, one-on-one meetings, and public recognition for achievements go a long way in making employees feel valued and heard.
Leaders should also foster an environment of psychological safety, where employees feel comfortable sharing ideas without fear of judgment. Creating such a space ensures diverse perspectives are brought to the table, which only strengthens the company.
Aligning Individual Goals with Organizational Objectives
For employees to stay motivated, there needs to be a clear connection between their personal growth and the company’s broader goals. Managers play a crucial role in helping employees see how their work contributes to the organization’s success.
Providing opportunities for professional development, mentorship, and cross-functional projects helps employees feel invested in their own growth as well as the company’s.
Navigating Global Cultures: Balancing Standardization and Local Adaptation
In today’s global marketplace, companies often operate across diverse regions with varied cultural norms and values. A one-size-fits-all approach to company culture simply doesn’t work. Successful organizations must strike a balance between standardizing core values and adapting them to fit local customs and preferences​.
PwC’s 2021 Global Culture Survey found that successful global companies balance standardization and localization. A more nuanced approach, where the organization’s core values remain constant, but their expression and implementation adapt to the local context is the preferred approach.
This approach not only helps navigate potential cultural barriers but also enriches the company culture by incorporating a diversity of thought and perspectives. By embracing cultural agility and a flexible mindset, leaders can cultivate a truly inclusive and dynamic work environment that resonates with employees across different regions.
The story of Haier, one of the world’s leading home appliance companies, demonstrates how culture can shape global success. By embracing both global and local cultural elements, Haier has maintained a cohesive company culture while adapting to local markets​. This flexible approach has allowed them to cultivate strong, diverse teams that thrive in different regions.
To navigate cultural differences, organizations should aim for cultural agility—the ability to adapt and integrate a company’s core values within a local context. This allows employees from different regions to feel included and aligned with the larger organization.
“A ‘one-size-fits-all’ approach to company culture can lead to misunderstandings and resistance.”
Sustaining Culture Through Change
Change is inevitable. Whether through mergers, rapid growth, or external market shifts, organizations must be prepared to navigate change without losing sight of their core culture. In fact, during times of uncertainty, a strong company culture can serve as a stabilizing force for employees.
Leadership’s Role During Change
Whether it’s due to rapid growth, market shifts, or internal restructuring, to mitigate challenges, leaders must maintain open communication, reinforce core values, and provide employees with a clear vision for the future. By demonstrating resilience and adaptability, leaders can help employees navigate change while preserving the organization’s cultural identity.
Open communication during times of change is crucial. Employees need to understand the “why” behind the change and how it will affect them. Leaders who communicate transparently and involve employees in the process create a sense of security and trust. By reinforcing core values and providing a clear vision for the future, leaders help the company maintain its cultural identity through even the most challenging times.
Leadership's Essential Role in Shaping and Sustaining Culture
Effective culture building requires a steadfast commitment from senior leadership. Leaders set the tone for the company culture by modeling desired behaviors, fostering open communication, and actively listening to employee feedback. Viewing culture as a dynamic, evolving entity allows leaders to adapt their approach to meet the organization’s changing needs, ensuring sustained success.
At Kingsley Gate, we recognize that leadership and culture are deeply intertwined. Our research in conjunction with FT Longitude “Bad Decisions: Why Companies Miss the Most Important Factor in Executive Hiring” highlights the importance of understanding the nuanced interplay between decision making and culture. By helping organizations identify leaders who are not only aligned with their core values but also capable of driving cultural evolution, Kingsley Gate ensures that companies are well-positioned to navigate change and thrive in a competitive landscape.
Ultimately, leadership is not just about setting the direction—it’s about creating a culture that engages, empowers, and propels the entire organization toward long-term success. With the right leaders in place, supported by a resilient and adaptive culture, companies can achieve their strategic goals and maintain a competitive edge in an ever-evolving landscape.
