Organisational culture. How to build it and why is it worth it?

Organisational culture is the foundation of any company, shaping its identity and influencing its day-to-day operations. Research conducted by Deloitte found that as many as 94% managers and 88% employees consider organisational culture to be one of the most important factors in a company's success. So how do you create a work environment that attracts talent and inspires innovation and growth?

What is organisational culture?

Organisational culture is the set of shared values, beliefs and behaviours that characterise a company and its employees. It goes far beyond official rules or regulations. It is an unwritten code that shapes the atmosphere in the workplace, influences decision-making and determines how the company interacts with customers and business partners.

Edgar Schein, a recognised expert on organisational culture, distinguishes three levels of this phenomenon:

 

1. Artefacts - visible elements such as the logo, office design or dress code.

2. Values - the officially declared principles and objectives of the organisation.

3. Basic assumptions - deeply ingrained, often unconscious beliefs and attitudes.

Organisational culture permeates every aspect of a company's operations. It affects recruitment processes, the way it communicates internally, its approach to innovation and its relationship with customers. A strong organisational culture can become a powerful tool in the hands of leaders, helping to achieve business goals and build competitive advantage.

Importance of organisational culture

Example of a company Zappos - known for its unique approach to customer service, perfectly illustrates the importance of company culture. Zappos offers new employees $2,000 to leave the company after their first month. Why? They only want to retain those who truly fit into their organisational culture. This unusual practice has created a team of extremely committed employees, and this has translated into exceptional customer service and financial success for the company.

Zappos goes even further in building its corporate culture. The company provides employees with four weeks of intensive customer service training before they actually start handling calls. Call centre employees never use scripts, and their only goal is customer satisfaction - no matter what. This WOW" philosophy in customer service has led to remarkable customer and employee loyalty. As Tony Hsieh, founder and CEO of Zappos, said:

"We are not an average company, our service is not average and we don't want our people to be average. We expect every employee to deliver a WOW."

Another example is Google, where a culture of innovation and experimentation has led to many groundbreaking products. The '20% time' policy, which allows employees to devote part of their working time to their own projects, has resulted in innovations such as Gmail and Google News. Google allows employees to experiment and actively encourages them to take risks and learn from their mistakes. The company has created an environment where employees feel safe to try new ideas. The approach to innovation is deeply rooted in Google's culture, as can be seen in one of their principles:

"Think 10x - instead of aiming for 10% improvement, try to improve something 10x."

The examples of Zappos and Google show how a strong and unique organisational culture can contribute to a company's success by increasing employee engagement, innovation and customer loyalty. Investing in building a positive organisational culture can bring significant long-term benefits.

How do you build an organisational culture?

Building a strong organisational culture requires a strategic approach and commitment at all levels of the organisation. Here are some key steps:

1. Define the company's values and mission - The foundations of organisational culture are clearly defined values and mission statements. These must go beyond empty slogans and reflect the organisation's actual beliefs and goals. The company Patagonia - an outdoor clothing manufacturer, has made environmental protection central to its mission. This translates into concrete actions, such as using recycled materials or dedicating 1% of annual revenues to environmental causes.
2. Involve employees in the culture creation process - Organisational culture cannot be imposed from above. Involving employees in its formation increases the sense of belonging and identification with the company. Buurtzorg Company of the Netherlands - operating in the healthcare industry, has abandoned the traditional hierarchy in favour of self-organised teams. Employees have a real say in decision-making, which directly translates into high job satisfaction and exceptional service quality.
3. Communicate values and expectations - Clear and consistent communication of values and expectations is important for building an organisational culture. Netflix is renowned for its culture of high performance and accountability. The company openly communicates its expectations of employees and emphasises that it only hires 'stars' in their fields. Transparency helps to attract the right candidates and maintain high labour standards.
4. Create consistent practices and rituals - Company practices and rituals help perpetuate the organisational culture. Salesforce - a leader in the CRM industry, holds regular 'V2MOM' (Vision, Values, Methods, Obstacles, Measures) meetings where employees share their goals and challenges. The sessions help keep activities consistent with the company's values and build a sense of community.
5. Set an example from the top - Leaders must be ambassadors of the organisational culture. Their behaviour and decisions should reflect the values of the company. CEO Microsoft - Satya Nadella, transformed the company's culture by emphasising empathy and collaboration. This approach has helped to significantly increase the company's value and improve its reputation.

Benefits of a strong organisational culture

Increased productivity and commitment

Employees who identify with a company's values show greater engagement and productivity. Research by Gallup found that companies with high levels of employee engagement achieve 21% higher profitability.

Improved talent retention

A strong organisational culture helps to attract and retain the best employees.

Increased innovation

An organisational culture that promotes openness and experimentation fosters innovation.

Improving brand reputation

A strong organisational culture translates into a positive external image of the company. Examples include Ben & Jerry'swhose social and environmental commitment is an integral part of its organisational culture, helping to build customer loyalty.

Greater resilience to crises

Companies with a strong organisational culture are better able to cope with crisis situations. An example is the response Airbnb for the COVID-19 pandemic, the company, guided by its values, quickly introduced host and guest support programmes, maintaining the trust of the community.

Building a strong organisational culture is a long-term and committed process. It requires consistency, authenticity and constant adaptation to changing conditions. However, the benefits of having an expressive and positive organisational culture far outweigh the outlay. Organisational culture can become an important success factor, attracting talent, inspiring innovation and building customer loyalty.