Corporate Culture BSNS5600

Overview What is corporate culture? What are the benefits of a successful corporate culture? An adaptive corporate culture How is a corporate culture established ? Case studies Conclusion

Definition: Corporate culture refers to… The shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature Corporate culture is rooted in an organization's goals, strategies, structure, and approaches to labor, customers, investors, and the greater community. “How we do (or see) things around here”

Why is corporate culture important? Economic benefits At an economic level, a well-developed culture can increase performance and productivity. Research indicates the average employee contributes only 20% of their potential. One study indicates companies with well- developed cultures can increase revenues 3x, have stock prices 9x higher, and generate net incomes over 700% higher than average companies.

Why is corporate culture important? Recruiting Companies with an open, participative workplace, where staff are happy and enjoy their work, and provide opportunities for creativity and growth can attract and recruit top-level candidates. Existing workings may convince their friends to join Important in becoming an employer of choice

Why is corporate culture important? Retention and absenteeism When employees love the place they work they don’t want to leave and will be less likely to be absent from their jobs

Why is corporate culture important? Customer service A corporate culture that creates a happy, efficient, hard-working and successful team will have a positive impact on customer services

A strong and successful corporate culture employee satisfaction, happiness, high morale and motivation high-quality output and improved performance, trust, purpose, team loyalty, pride, and faith

An adaptive corporate culture Adaptive cultures are characterized by Risk-taking Openness to experimentation Innovation Individuals taking the initiative Fast decision-making and execution Being able see opportunities Adaptive cultures also minimize certain behaviors and “there’s less emphasis on being careful, predictable, avoiding conflict, and making your numbers” (O’Reilly, 20014, para 6, as cited in Holton, 2014). Many business experts believe that adaptive cultures are the most successful

How is corporate culture achieved? Leadership: Leaders in an organization need to be role models for the culture Structure: The structure of a company will have a big impact on the culture (flat and fast v a traditional hierarchy) Hold an offsite: Get workers offsite and start discussing & building the culture Prioritize and Focus: Decide what’s really important for your products and customers and focus on this (as a team) Always communicate: It is vital that the values and culture of an organization are regularly communicated to employees, customers etc

How is corporate culture achieved? Vision: A vision or mission statement provides an organization with direction and purpose Values: These guide the behaviors and attitudes that will help an organization achieve its vision. Practices Does a company practise what it preaches ‘walk the talk’ e.g. if the mission statement is to be totally customer-focused, is this what occurs? Narrative: a unique story e.g. Coca-Cola celebrates its past - also has World of Coke museum in Atlanta People: The people with the right ‘fit’ for the culture are key Place: Buildings, spaces

Case Studies: Apple

Summary of Apple Corporate Culture Doing the best poss. + never give up Hire people at the top of the fld or have the potntial Empowering: small team doing the gr8 thing Don’t think about the box: what’s the best poss. Collaboration between grps/teams Work hard; being flexi + adjustbl. Being part of sth meaningful

Case Studies: Zappos

Summary of Zappos Corporate Culture Wk life innovatn Happy Happy 2 see each othr Have fun Employ right people Fit in the cltr Gr8 + Contrbt 2 the cltr

Conclusion Definition of corporate culture Benefits for both employees and business An adaptive corporate culture The factors that establish a corporate culture Case studies

References corporate-culture/ corporate-culture/ organization-culture/ organization-culture/ corporate-culture-drives-growth corporate-culture-drives-growth

Homework: study resources on the Moodlesite