Successful businesses are easily recognised by the way they work together seamlessly. This smooth operation is like the DNA of a business and plays a crucial role in decision-making and future direction. We call this the “culture” of a business, and dedicated employees embrace and embody it every day.
Culture refers to the shared beliefs, values, practices, and attitudes of a group. It is a vital component within a business because it shapes decision-making processes, ultimately influencing the success of the business.
Working on and developing your business culture brings several significant benefits:
- Attraction: It gives your business a magnetic quality, making it more appealing to talented individuals.
- Talent acquisition: It helps you attract and hire team members who fit well within your culture.
- Retention: It improves employee retention by fostering a positive and engaging work environment.
- Behavioural influence: It provides a framework to influence team behaviour and promote desired values.
- Decision-making: It provides a guiding direction for making important business decisions.
- Customer interactions: It influences every interaction with your customers, enhancing their experience.
- Strategic value: It adds substantial strategic value to your business, potentially increasing its valuation.
The significance of culture cannot be underestimated. In fact, there are businesses that have sold for double their commercial value due to their unique culture! As management guru Peter Drucker once said, “Culture eats strategy for breakfast!” In other words, even with a brilliant strategy, a business without a strong culture is likely to underachieve its potential.
So, how can you develop your business culture?
Here are some steps to follow:
- Identify values: As a business owner, identify your values, and do the same with any co-owners.
- Merge values: Spend time merging your values and prioritize them to create a unified set of Owner Values.
- Team involvement: Conduct a session with all team members to identify their values.
- Merge team values: Work together to merge each person’s values into a united set of Company Values.
- Wordsmithing: Collaborate with the team to refine your Value Names and write Descriptions for each value.
- Express values: Determine a way to express and display your values within your workspace.
- Establish standards: Work with the team to turn your Company Values into “Standards” or ‘Code of Conduct’ and share them with everyone.
- Transform into actions: Managers should work with each team member to translate the “Standards” into actionable steps for their specific roles.
- Performance indicators: Select actions that can be turned into Key Performance Indicators (KPIs) for each person.
- Review and feedback: Set KPI levels for each team member and establish a system for regular performance reviews.
Remember, it’s crucial for every individual in the business, from the owner to the most junior team member, to live and breathe the values. Each team member should feel empowered and confident enough to hold others accountable if the values are not upheld.
By following these steps, you can develop a thriving business culture that fosters engagement, productivity, and success.
If you want some help in building your business culture, contact Shannae Hewett on 55612643 to book a meeting to discuss how we can work with you to build yours.
Have a great day!
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