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 • https://bizbooknotes.wordpress.com/2011/10/29/what-is-corporate

-culture/

• http://whatis.techtarget.com/definition/corporate-culture • http://www.inc.com/encyclopedia/corporate-culture.html• http://businesscasestudies.co.uk• http://www.time.com • http://companyculture.com/141-the-benefits-of-a-good-organizatio

n-culture/

• http://www.gsb.stanford.edu/insights/charles-oreilly-finding-corporate-culture-drives-growth

• https://hbr.org/2013/05/six-components-of-culture

Homework: study resources on the Moodlesite