3 diffrent types of business culture and how they come about.

Jerry is a new hire with the BBB Company. It’s the end of his first week and he is confused. The way they function here is so different from the larger conglomerate he interned at.

There they deliberated on everything from the type of toilet paper to use to the next big customer they wanted to target. These deliberations included research, spread sheets and people defending their take on the issue.

At this newer start-up company they rarely have a sit down meeting! The lines of authority are blurry at best and decisions are made in minutes, some times with discussions that seem more like arguments.

Jerry finds himself frightened by the lack of structure yet intrigued by the fast pace and the willingness of leadership to accept mistakes.

He is experiencing two very different cultures! Neither is right or wrong, they just are!

So where does culture come from? Why is the culture of one so very different from the other?

I’ll give you a quick overview, but remember this is a huge topic and more than we can put into one article. By the way, salespeople, if you understand your customer’s culture, it can help you in your sales efforts.

1.) The first and most important influence on a company’s culture is the leadership!

If we listen to the leadership of a company or division, what do the say?
“We have to make our mistakes faster so we can figure out what works faster!”
“Our purpose is to preserve our assets and mistakes cost us assets, so no mistakes!”

Are we seeing two very different approaches to business? Would the difference in these two statements create two very different cultures? Absolutely!

Jerry’s previous job was with a company that was far more deliberate, taking a great deal of time to make choices and looking more at the potential for loss than gain in any change. It appears that preservation and stability are the standard course for them. Their focus is on a slower steady growth as the desired outcome. Typically, you will find this in an entrenched, well established company.

The new position that Jerry has taken is with a company that is looking to move quickly, make decisions on very little information, willing to take much larger risks; has a very steep and fast learning curve. You will often find this approach in start-ups, small business and some large corporations.

If you’re the one leading a company or a division, which method feels comfortable to you? What does it say about your leadership style? What impact does it have on the internal culture? Where would you place yourself on the scale between these two extremes?

2.) Is the culture the result of purposeful design or by happenstance?

Has the culture been formed from people figuring out how to work together and finding a way to get things done?

Has the culture been directed on purpose to fit a given vision of what leadership wants?

If we are very honest, most organizations tend to have formed their culture from happenstance.

The leader says and does certain things because that is who they are.

The people respond to it based on what they understand and experience each day. Very quickly certain habits, rituals and methodologies emerge and become the norm. It does not matter if they are beneficial, negative, positive or corrosive. It has been allowed to develop because leadership either does not have a plan or vision; or does not realize or know how to direct the culture.

With a strong leader and a great deal of good people, a happenstance culture can thrive and do exceptionally well, mainly because they are very focused. If the focus is undefined, you’ll experience a different picture and the company will have challenges.

Compare that to the purposeful culture where the leadership makes a very vivid picture and focus of who and what the organization will be. Not only does the leadership have this picture and focus, but it is their main objective to infuse this picture and focus into everyone in the organization. Everything the organization does is based on this picture and focus; it becomes the organization’s breath and blood!

General Electric went through such a change in the 90’s. The new leadership determined a new focus of being World Class #1 in everything they do. At the time they were doing well and were a conglomerate of hundreds of companies in all types of sizes and markets. The statement of World Class #1 caused them to view everything they did through different glasses. If a company could not become at least #2 in the world, it was sold, dismantled or absorbed. This freed up billions of dollars that was used to move the remaining companies to #1 status. The result, General Electric is a lean handful of world class companies that dominate their markets with even greater profit and growth than before!

That is the power of a purposeful designed culture!

How would you define your picture and focus?

3.) Some other factors that may affect an organization’s culture are the environment it is in. Some of these may be:

The physical location; are you in Manhattan, San Francisco, Mexico City, Beijing or Zap, North Dakota (population 30 people).

Yes, there can be a strong influence from the local culture and how they value and see things. The local cultures will emphasize various values and habits that come into the organization, yet strong leadership can direct the core culture.

The type of work or product can also have an effect.

If your organization is in the high tech industry with everyone working on keyboards, there are different elements that come into play.

On the other hand if you’re a manufacturing concern with welders working in 100 degree heat, this provides other elements that need to be considered.

The same with a high end financial Wall Street organization with billions of dollars ion revenue very different set of cultural elements are involved. Once more, strong leadership can direct the core culture.

The personalities, behaviors and values of leaders within the organization can have a very subtle and yet dramatic effect on an organization.

It may not always be the president or owner that directs the culture! If there are other strong leaders in the organization, they can influence and create the culture they want. It is possible that you may end up with several strong leaders fighting for that control. Here again, it is up to the leadership to direct the core culture.

The bottom line?

The leadership is responsible for the culture within an organization. They will create the culture by choice or by happenstance if not both. By far the best is by choice!

Our next article is “Why Change Culture”, What value could it have on an organization?

For more on how to work with culture and how we can assist, check out our web sites and blog at: www.BusArc.com www.BusArconline.com www.Hgoergerassoc.com www.BlogBusArc.blogspot.com

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