Organizational Culture Change
Organizational culture and why we need it is a question I get asked often as an executive coach. Let's examine why it is so important and how it benefits your employees and your customers.
The definition of organizational culture is best summarized this way. It is the combination of beliefs, assumptions, values, and habits that make up the environment of your workplace. If that sounds like a mouthful, think of it this way instead: organizational culture refers to the way people in your business interact with one another, and with the customer.
Organizational culture is a part of every business, whether you are aware of it or not. That means every business has a choice. Either you actively define your organizational culture, building a set of values and customs, or you allow your culture to happen haphazardly. If you choose the second option, do not be surprised if your organizational culture turns out to be weak, ineffective, or even toxic.
That is the basic organizational culture definition, but what does all of this mean practically? How can organizational culture impact your bottom line? What good should your organizational culture do you? That is what I am going to address here.
Types of Organizational Culture
The first thing to consider is the basic types of organizational culture. No two businesses have quite the same culture, because none are made up of the same people. Indeed, your people ultimately make your culture unique.
With that said, there are certainly some basic types of organizational cultures. Specifically, these are some of the most common ones.
The Clan
Clan cultures are all about collaborative work. Specifically, in a clan culture, employees view themselves as part of a big family. Consequently, everyone is united by the same sense of purpose, and they work together to achieve the same ends. Clan cultures are bound together by the values of teamwork and open communication, and leadership happens through agreed-upon standards.
Adhocracy
The second type of organizational culture is the adhocracy, which is all about creative energy. Innovation and risk-taking are rewarded, and the people who tend to succeed are the ones with the most entrepreneurial mindsets. The primary values are being nimble, dynamic, and ready to embrace change.
Market Cultures
Market cultures are all about employees competing with one another to see who can yield the most impressive results. As a result, these are highly goal-oriented cultures, with leaders who can be fairly exacting, aggressive, and demanding. In a market culture, everyone wants to beat their rivals, period.
Hierarchy Culture
Finally, there is the hierarchy culture. Here, the dominant values are control and rigid adherence to structure. As a result, most large, stereotypical bureaucracies fall under this umbrella.
These are broad terms, but they should give you some idea of which bucket best describes your own organizational culture.
"Organizational culture is a part of every business, whether you are aware of it or not. The only real choice is whether you define it, or let it happen to you."
Why Is Organizational Culture Important?
Now that we have discussed the primary types of organizational culture, the next step is understanding what makes organizational culture so meaningful. Ultimately, why does any of this matter, anyway? There are a few reasons.
- It's important for recruiting and retaining top talent. Among millennial employees, culture is consistently one of the top factors in considering a new job or career change. People want to be part of a work environment that is healthy, positive, purposeful, and productive.
- Culture sets the tone for productivity. The kind of work environment you create determines the extent to which employees will collaborate and the extent to which they will be self-motivated.
- Your organizational culture impacts your employees, and it spills over into interactions with customers. A toxic culture can lead to lax standards of customer service, while a healthy and positive culture empowers employees to treat clients and customers respectfully.
These are just some of the reasons it is important for your business to be proactive and strategic in developing a strong sense of culture.
Bring Dr. Rick Goodman to your next leadership event to help your organization define and build the culture you actually want, not the one that happens by accident.
The Benefits of a Strong Culture
Drawing on the definition of organizational culture and why it matters, here are some of the concrete benefits a strong culture delivers.
- A strong culture can be a major selling point for potential employees, and a great way to attract new talent.
- Culture can help improve morale, engagement, and retention, helping you avoid the high costs of employee turnover.
- The right kind of culture empowers employees to do their most creative, productive, and collaborative work.
- A positive culture bleeds into interactions with customers, enhancing your team's ability to delight its clientele.
- In a positive culture, employees are more willing to go above and beyond in innovating new strategies and solutions.
These are just a few of the reasons it is worth being intentional about the kind of culture you build.
Watch: Building a Strong Organizational Culture
Dr. Rick Goodman explains what organizational culture actually is and how leaders can be intentional about building the right one.
Learn More About Building a Strong Culture
There is much your company can do to ensure a favorable culture. Above all, it starts with being intentional, outlining in real terms what a strong culture looks like for you, understanding that it may look different from one organization to the next.
Something else worth considering is hiring an executive coach who brings expertise in culture-building. Indeed, it happens to be a field I know well, and I would love to talk with you more about effective culture making.
About Dr. Rick Goodman, CSP
Dr. Rick Goodman is a Certified Speaking Professional, six-time Global Gurus Top 30 Leadership Expert, and author of five books including the Amazon number one bestseller The Solutions Oriented Leader. He has delivered more than 2,000 programs across all 50 states and 32 countries, helping organizations define and build the culture that drives real business results.
His keynote programs, workshops, and executive coaching engagements are customized and immediately actionable.
Continue Building Your Organizational Culture
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Build the Culture Your Organization Actually Needs
Dr. Rick Goodman is a Certified Speaking Professional and executive coach who helps organizations define, build, and strengthen their culture with practical, leadership-driven strategies rather than generic values statements.
Recognized six consecutive years as a Global Gurus Top 30 Leadership Expert. Author of five books. Certified Speaking Professional.
Organizational Culture: Questions Leaders and Organizations Ask Most
Common Questions About Defining and Building a Strong Culture
If your question is not answered below, call us at 1-954-218-5325 or email rick@rickgoodman.com.
Organizational culture is the combination of beliefs, assumptions, values, and habits that make up the environment of your workplace. In simple terms, it refers to the way people in your business interact with one another and with your customers.
There are four common types. Clan culture is collaborative, built around teamwork and a shared sense of purpose. Adhocracy is creative and entrepreneurial, rewarding innovation and risk-taking. Market culture is competitive and goal-oriented, with employees driven to outperform rivals. Hierarchy culture emphasizes control and structure, common in large, traditional organizations.
Culture matters because it directly affects recruiting and retention, since culture is consistently one of the top factors employees consider in a job or career change. It also sets the tone for productivity and collaboration, and it inevitably spills over into how employees treat customers.
Every business has a culture whether it is intentional or not. Companies that do not actively define their values and customs risk letting culture happen haphazardly, which frequently results in a weak, ineffective, or even toxic environment.
A strong culture becomes a major selling point for attracting talent, improves morale and retention, empowers employees to do more creative and collaborative work, and enhances customer interactions. It also makes employees more willing to innovate and go beyond the minimum.
Start by being intentional. Outline in real, specific terms what a strong culture looks like for your organization, since it will look different from one company to the next. Many leaders find that working with an executive coach accelerates this process significantly.
Dr. Rick Goodman works as an executive coach and keynote speaker helping organizations define, build, and strengthen their organizational culture, drawing on decades of experience across industries and organization sizes. To start the conversation, visit the booking calendar or call 1-954-218-5325.