{"id":41517,"date":"2021-07-05T17:48:57","date_gmt":"2021-07-05T21:48:57","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=41517"},"modified":"2021-07-12T17:27:36","modified_gmt":"2021-07-12T21:27:36","slug":"building-a-company-culture","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/building-a-company-culture\/","title":{"rendered":"Building a Company Culture: What You Need to Know"},"content":{"rendered":"\n<p>Do you want to find out how to build a <a href=\"https:\/\/www.shortform.com\/blog\/building-a-positive-workplace-culture\/\">company culture<\/a>? What do you need to know about building a company culture successfully?<\/p>\n\n\n\n<p>A company culture is a mix of values, behaviors, processes, and priorities within a company. Building a company culture successfully can have huge benefits for a business.<\/p>\n\n\n\n<p>Learn more about building a company culture with a few practical steps.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Company Processes and Priorities<\/strong><\/h2>\n\n\n\n<p>Before we cover building a company culture, it\u2019s important to know about company processes and priorities:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Processes<\/strong><\/h3>\n\n\n\n<p>These are the ways employees communicate, coordinate, and make decisions.&nbsp;<\/p>\n\n\n\n<p>Unlike resources, processes don\u2019t appear on a balance sheet. But while less visible, processes facilitate the use of resources to solve problems. Processes include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The methods or systems by which products are developed and produced.<\/li><li>Methods of market research, budgeting, <a href=\"https:\/\/www.shortform.com\/blog\/personnel-development\/\">employee development<\/a>, compensation, <a href=\"https:\/\/www.shortform.com\/blog\/resource-allocation-examples\/\">resource allocation<\/a>, and so on.<\/li><\/ul>\n\n\n\n<p>Strong processes work regardless of who performs them (employees doing them are more or less interchangeable).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Priorities<\/strong><\/h3>\n\n\n\n<p>This may be the most important of the three factors determining capabilities. Priorities guide a company\u2019s decisions, including what the company invests in and chooses not to invest in. Leaders need to communicate clear <a href=\"https:\/\/www.shortform.com\/blog\/business-priority\/\">company priorities<\/a> so employees make decisions aligned with the company\u2019s priorities and strategy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Build a Company Culture&nbsp;<\/strong><\/h2>\n\n\n\n<p>People often think that perks and policies, such as casual dress, free food, company T-shirts, and bringing kids or dogs to work, define a company\u2019s culture. While these may reflect office culture, a culture itself is less visible.<\/p>\n\n\n\n<p>Organizational expert Edgar Schein of MIT defined culture as an ingrained way that employees go about their work\u2014it\u2019s a sense of the way a company does things, which becomes so automatic that people don\u2019t think of doing things any other way. This sense develops over time from working together and seeing what works (the first time something works, others repeat the process and it becomes the way to do it). Together, employees reach an understanding of the company\u2019s priorities and the processes for implementing them.&nbsp;<\/p>\n\n\n\n<p>Managers don\u2019t need to supervise everything because the organization essentially runs on its own. People instinctively do things in the prescribed way. <strong>Another way to define culture is as the combination of an organization\u2019s priorities and processes.<\/strong><\/p>\n\n\n\n<p>The animation studio Pixar is an example of a company with a strong culture. Its<strong> <\/strong><a href=\"https:\/\/www.shortform.com\/blog\/the-creative-process-2\/\">creative process<\/a> differs from that of other studios. Instead of a development group assigning ideas to directors to pursue, Pixar helps film directors refine their own ideas. Nearly everyone in the company provides no-holds-barred feedback on each film; the timetable takes a back seat to quality. The processes and priority of creating top-quality films have become a unique creative culture.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps for Building a Company Culture<\/strong><\/h2>\n\n\n\n<p>If you want to know how to build a company culture, it\u2019s important to have some practical steps for getting there.&nbsp;<\/p>\n\n\n\n<p>Many companies proactively create a culture, writing it down and talking about it frequently. For example, Netflix posts key elements of its culture online, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Not having a vacation policy: Employees may take off as much time as they want as long as they\u2019re doing great work and meeting their responsibilities.<\/li><li>Expecting all employees to be outstanding performers; those with merely \u201cadequate\u201d work will be let go.<\/li><li>Giving employees \u201cfreedom and responsibility,\u201d rather than operating on a <a href=\"https:\/\/www.shortform.com\/blog\/command-and-control-vs-trust-and-inspire\/\">command and control<\/a> model.<\/li><\/ul>\n\n\n\n<p>According to Schein of MIT, a company can <strong>create a culture by following these steps:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Identify a recurring problem.<\/li><li>Assign a group to figure out how to solve it (and have them keep trying until they come up with a good solution).<\/li><li>Every time this problem comes up, assign this team to solve it so that the process becomes instinctive; this way of doing things becomes the group\u2019s culture.<\/li><\/ul>\n\n\n\n<p><strong>If leaders define a culture but don\u2019t embody or enforce it, the company will evolve a different culture based on the priorities and processes that have worked and become embedded. Knowing this is essential when building a company culture successfully.&nbsp;<\/strong><\/p>\n\n\n\n<p>For example, the energy company Enron had a \u201cvision and values\u201d statement articulating four values: respect, integrity, communication, and excellence. However, starting with its leadership, Enron failed to live by these values, and the company collapsed amid scandal.<\/p>\n\n\n\n<p>To determine whether you are building a company culture successfully, ask yourself whether, when faced with making a decision, your employees have made the ones you wanted them to make (and whether you followed up with feedback). If leaders and managers are inconsistent or inattentive, poor decisions can evolve into a culture.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you want to find out how to build a company culture? What do you need to know about building a company culture successfully? A company culture is a mix of values, behaviors, processes, and priorities within a company. Building a company culture successfully can have huge benefits for a business. Learn more about building a company culture with a few practical steps.<\/p>\n","protected":false},"author":12,"featured_media":27938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[411],"class_list":["post-41517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-how-will-you-measure-your-life","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Building a Company Culture: What You Need to Know - Shortform Books<\/title>\n<meta name=\"description\" content=\"Successfully building a company culture is about fostering positive values and processes rather than offering exciting perks. Find out more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/building-a-company-culture\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building a Company Culture: What You Need to Know\" \/>\n<meta property=\"og:description\" content=\"Successfully building a company culture is about fostering positive values and processes rather than offering exciting perks. 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