Doug Flaig, President of Stratus Building Solutions.
If your father or grandfather owned a business, the way he ran it was most likely much different from the way you run a business today. Traditionally, companies operated from a profit-driven mindset. The management styles typically featured top-down decision making, and the focus was short-term, usually quarterly, financial goals.
The owners developed strategies for their companies—blueprints that mapped out the route to reach their goals and grow their businesses.
In the 21st century, a lot has changed in the corporate world. Boardrooms are more diverse, decisions are often made as a group and many businesses have come to recognize that even the most well-crafted strategy won’t deliver the desired results unless it is backed by a strong company culture.
Understanding The Importance Of Culture
A company’s culture mirrors the values that define it, aligning your entire organization with a common purpose and shared vision. Your company’s culture shows the world who you are, not just what you sell. There are many reasons why developing a vibrant, organic inclusive culture is especially important in today’s climate.
A strong company culture is especially imperative if you want to reach Millennials and Generation-Z. They tend to spend their money with companies whose values align with their own. In the workforce, they want jobs that provide not only a paycheck but also a sense of purpose and to know that what they are doing makes a difference in the world. More and more, they are looking for organizations with a positive work environment, run by people of good character who understand the importance of work/life balance.
In today’s digital age, social media and online reviews can spread a company’s reputation and brand perception faster and farther than previous generations could have ever imagined. A well-defined, positive culture can enhance a company’s image and attract customers and clients who prefer associating with organizations that embody their values.
There’s also a growing recognition that a healthy company culture can have a direct impact on overall business performance. A strong culture fosters innovation, creativity and collaboration, leading to improved problem-solving and adaptability in the face of challenges.
As a result of these factors, I see companies investing resources in helping to understand, shape and promote their company culture. Successful companies are actively creating programs, initiatives and policies that align with their core values and resonate with employees’ expectations. Great leaders recognize that a strong culture is not only beneficial for employees but also plays a pivotal role in driving business success in today’s dynamic and competitive market.
How Culture Supports Strategy
Clearly, your business needs to execute strong strategies in order to reach its goals. But, if you build strategies in opposition to your core values, they will not succeed. Strategic plans gain more momentum and success when they align seamlessly with core values and cultural identity.
In other words, to empower your employees to drive your strategic initiatives, they must believe in them. When your culture and your strategies align, it can instill a sense of ownership, accountability and passion in your employees, inspiring them to work hard to help the company reach its goals.
Creating A Strong Culture
I believe that a strong culture starts with the behavior modeled by executive leadership. For example, if one of the company’s core values is integrity, but leadership “massages the numbers” to hit strategic targets, then the core value loses its meaning. Conversely, if accountability is a core value, and the leadership team owns a mistake when it makes one, it sends a reinforcing and clear message about that core value.
The first step is to create a strong and positive culture and make sure everyone knows and can recite the core values. It’s important to keep it simple. No one wants to recall 15 core values. Training in these areas should be part of the hiring and onboarding process. As you are interviewing candidates, make sure to look for someone who fits the company’s core values.
As a result of these changing dynamics and increased awareness, I believe that the ideal modern business is one that looks to strike a better balance between strategy and culture. They now understand that while a solid strategic plan is crucial, it is equally essential to foster a supportive and values-driven culture that aligns with the company’s vision and mission.
I encourage you to find ways for your strategy and culture to work hand in hand, for I’ve found that a strong cultural foundation can significantly enhance the effectiveness of your strategic initiatives.
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