{"id":82099,"date":"2022-10-24T14:23:00","date_gmt":"2022-10-24T18:23:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=82099"},"modified":"2022-10-31T12:00:35","modified_gmt":"2022-10-31T16:00:35","slug":"elements-of-organizational-culture-2","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/elements-of-organizational-culture-2\/","title":{"rendered":"3 Elements of Organizational Culture That Set Companies Apart"},"content":{"rendered":"\n<p>Do organizations have callings just as individuals do? Does your company allow you to be yourself?<\/p>\n\n\n\n<p>In <em>Reinventing Organizations<\/em>, Fr\u00e9d\u00e9ric Laloux discusses three common elements of <a href=\"https:\/\/www.shortform.com\/blog\/strong-organizational-culture\/\">organizational culture<\/a> within <a href=\"https:\/\/www.shortform.com\/blog\/visionary-company\/\">visionary companies<\/a>: purpose, authenticity, and trust. Only this kind of organizational culture can foster the practices that set these exceptional companies apart from the rest.<\/p>\n\n\n\n<p>Keep reading to learn about three <a href=\"https:\/\/www.shortform.com\/blog\/elements-of-organizational-culture\/\">elements of organizational culture<\/a> that are present in visionary companies.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-culture-of-visionary-organizations\">The Culture of Visionary Organizations<\/h2>\n\n\n\n<p>The practices that define visionary organizations\u2014flexible roles, self-directed <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a>, a non-hierarchical sharing of power, and team-centered feedback and conflict resolution\u2014can be maintained only within a certain kind of culture. Though cultures are unique to every organization, Laloux identifies many commonalities among the companies included in his research. These elements of organizational culture include placing a meaningful purpose at the core of the company\u2019s mission, encouraging all employees to be their authentic selves at work, and building an air of <a href=\"https:\/\/www.shortform.com\/blog\/organizational-trust-and-transparency-and-transparency\/\">transparency and trust<\/a> that permeates the whole organization.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Marcus Buckingham and Ashley Goodall offer a contrary view in <a href=\"https:\/\/www.shortform.com\/app\/book\/nine-lies-about-work\"><em>Nine Lies About Work<\/em><\/a>. They argue that <a href=\"https:\/\/www.shortform.com\/app\/book\/nine-lies-about-work#lie-1-corporate-culture-is-important\">overemphasizing a company\u2019s culture can be harmful<\/a>, especially if the culture only addresses surface-level issues and makes employees feel the need to conform. Instead, Buckingham and Goodall place more value on healthy, <a href=\"https:\/\/www.shortform.com\/blog\/supportive-team\/\">supportive teams<\/a>.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Organizational Purpose<\/h3>\n\n\n\n<p>The strongest driver of the company\u2019s culture is its overriding purpose in the world. As Laloux explains, this purpose is not dictated from on high but emerges organically from the work the company does and the values of its members. <strong>This purpose replaces profitability as the reason for the company\u2019s existence while guiding how it interacts with competitors, clients, and the community at large<\/strong>. For example, a software company whose higher purpose is to raise computer literacy in impoverished areas might offer discounts to elementary schools and libraries, or partner with them to seek grants for funding.<\/p>\n\n\n\n<p>Laloux asserts that, from a visionary perspective, organizations have a calling, just as people do. While an organization\u2019s calling is initially determined by its founders, it can change. The needs of the world may align with the company\u2019s values in surprising ways, pushing the organization in new directions.<\/p>\n\n\n\n<p>The shift from \u201cprofit\u201d to \u201cpurpose\u201d as the prime motivator means that fear for survival is no longer an underlying factor. Laloux says that visionary organizations act from an attitude of abundance. When the mission is paramount, <strong>visionary companies will often aid their own competitors<\/strong>,<strong> if doing so helps them achieve their goals<\/strong>. To be sure, profits are necessary, but visionary organizations view them as a byproduct of fulfilling the company\u2019s purpose.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Authenticity<\/h3>\n\n\n\n<p>The culture of visionary organizations goes beyond merely furthering the company\u2019s mission. Laloux claims that these organizations put a priority on enabling their workers to grow into their own potential. <strong>Visionary companies are places where employees find a safe space to show up as themselves, be treated as adults, and flourish in an environment of healthy collaboration<\/strong>.<\/p>\n\n\n\n<p>Laloux points out that companies with visionary cultures encourage people to <a href=\"https:\/\/www.shortform.com\/blog\/living-in-the-present-moment\/\">be fully present<\/a>, quirks and all. With no hierarchy, colleagues relate to each other as adults and are able to see each other as people, not merely cogs in a machine.<\/p>\n\n\n\n<p><strong>In order for people to bring their whole selves, the company must be a safe space to do so<\/strong>. Laloux shows that visionary companies accomplish this by training everyone in leadership skills such as listening, coaching, gratitude, and authenticity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trust<\/h3>\n\n\n\n<p>These companies\u2019 high-minded ideals rely entirely on the trust between workers and the organization. Therefore, says Laloux, it\u2019s imperative that organizations demonstrate their trust by allowing everyone to act responsibly without a system of controls, in particular doing away with the compartmentalization of information. Laloux argues that <strong>total transparency is essential in <a href=\"https:\/\/www.shortform.com\/blog\/how-is-trust-earned\/\">building trust<\/a> between an organization and its members.<\/strong><\/p>\n\n\n\n<p>Transparency lets employees honestly evaluate their own teams and others while increasing their <a href=\"https:\/\/www.shortform.com\/blog\/the-endowment-effect\/\">sense of ownership<\/a> of the company\u2019s successes and failures.<\/p>\n\n\n\n<p>By distributing power, visionary companies make use of the whole organization\u2019s intelligence while forcing tough decisions on individuals and teams who otherwise would have been told what to do.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do organizations have callings just as individuals do? Does your company allow you to be yourself? In Reinventing Organizations, Fr\u00e9d\u00e9ric Laloux discusses three common elements of organizational culture within visionary companies: purpose, authenticity, and trust. Only this kind of organizational culture can foster the practices that set these exceptional companies apart from the rest. Keep reading to learn about three elements of organizational culture that are present in visionary companies.<\/p>\n","protected":false},"author":9,"featured_media":82107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,30],"tags":[775],"class_list":["post-82099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-work","tag-reinventing-organizations","","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>3 Elements of Organizational Culture That Set Companies Apart - Shortform Books<\/title>\n<meta name=\"description\" content=\"Visionary companies share three common elements of organizational culture: purpose, authenticity, and trust. Learn what difference they make.\" \/>\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\/elements-of-organizational-culture-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Elements of Organizational Culture That Set Companies Apart\" \/>\n<meta property=\"og:description\" content=\"Visionary companies share three common elements of organizational culture: purpose, authenticity, and trust. 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