Corporate culture is an intangible asset and brings a lot of value to help engage employees. A business without culture, vision, core values , and strategies for sustainable development will not be able to survive in this changing economy.
The lifetime of the corporate culture can be longer than that of the leader of that business. We can see many companies have existed for more than a century, constantly developing and bringing good values to society. It is a corporate culture that is solidly built and taken seriously right from the start.
However, building a corporate culture requires many factors, as well as a long process. So, in this article, BEMO will help you see the elements that make up the corporate culture and the basic steps to build a culture for your own business.
1. Elements of the corporate culture
When building a sustainable corporate culture, you should pay attention to the following core elements:
- Vision: Vision is the orientation and business development goals the leader sets out before building the business and is determined to implement it. Vision is like a guideline for all activities: orienting employees to follow, promoting good values , and constantly developing. The vision must be suitable and feasible with the actual situation of each business.
- Core values: are the things that are specific to the company. To pursue the vision, the company needs to have core values, its own and different natures, for customers or employees to recognize. This is also the standard measure for all activities around the set goals of the business.
- People: The human factor is always the most important and necessary because without people who will share the strategies and core values and work to promote the goals? Without people, culture is not born, neither is corporate culture. A solid team creates a sustainable corporate culture since they adapt the overall direction of the organization. Hiring the right people will bring huge benefits because businesses can save costs. When finding the right candidate for the culture, the loyalty and dedication of employees are also more. Moreover, the new employee will bring new value never before to further perfect the company’s culture.
- Regulations/rules of the enterprise: General policies and regulations are considered characteristics of corporate culture and members of the organization must adhere to the general values. When the whole enterprise follows the general rules, it proves effective management and creates a consistent and understanding working environment.
- Cultural diversity: Human resources coming from different regions make a difference for corporate culture. Because they will have to exchange and learn regional values to understand each other better, this creates a culture of learning and supporting each other. And this is also a factor that businesses should consider to form the most appropriate corporate culture.
- Technology: When a business transforms digitally, it will create a professional, uniform, and modern working environment. This makes workplace culture operate smoothly, as well as attract more talented people to devote their capabilities.
The above are factors that have a strong impact on corporate culture, as well as contribute to building a long-term management system. But how to start building a corporate culture? Continue reading below.
2. How to build a sustainable corporate culture for small and medium businesses
To build a corporate culture, businesses should consider the following xix steps:
Step 1: Check the current organization assessment
First, companies need to assess the quality of their current culture, and this is not easy. Because culture is an intangible value, companies can only observe, or survey with employees. Therefore, if your company has the following signs, it is time to change the culture immediately:
- When recruiting for vacancies continuously: a sign that the corporate culture is having problems because the personnel feels inappropriate, or poor management affects employee psychology.
- Poor management level: this is said to be a factor that needs to be improved when building corporate culture because they will create bad habits for employees such as being late for work, lack of discipline, etc.
- Lack of internal communication is a sign that the culture needs to be changed because employees lack cohesion, departments do not get along and interact. This easily leads to conflicts when exchanging ideas, because employees have little communication to understand each other.
- Lack of employees’ opinions shows that the enterprise does not create conditions for employees to open, comment, and share to improve many policies and work processes. This is a non-creative, oppressive work environment.
And there are many other objective factors that businesses need to determine before building corporate culture.
Step 2: Unique ideas for corporate culture
Once the toxic factors affecting the general culture have been identified, the business should define the change criteria. Therefore, businesses need to have an idea of the criteria for internal culture and priority rates, such as:
- Level of interest in the company: 60%
- Business goal: 10%
- Training: 6%
- Comfort: 3%
- Efficiency: 90%
With such prioritization, businesses will be able to build important cultural elements first and improve core values faster.
Step 3: Choose core values
If you want to have a sustainable and consistent corporate culture, the business needs to have core values, instead of giving a few easy words. Therefore, businesses should ask questions to find their value:
- What is the mission, vision, goals?
- What factors will the business be known?
- Is the business goal consistent with the staff?
- What is the unique culture of the business? For example, a professional working environment, recognized employee achievements, excellent employee training, best customer service, etc.
Based on these core values you can more easily hire or fire employees. This helps your company select people who are deeply empathetic to the company’s culture. That can make all employees become “brand ambassadors” not just the Marketing and Customer Relations departments. Employees themselves can become goodwill ambassadors both inside and outside the company.
Step 4: A clear culture-building plan
A transformation plan, building culture is essential or the idea will stay on paper forever. Therefore, this step requires leadership to initiate, set a vision, motivate employees to trust company values, and build corporate culture together.
Successful corporate culture depends a lot on the leadership level because they are the locomotive leading employees to reach goals. Nothing convinces employees more than practical actions that bring actual results. Remember that if you have the right culture, you get everything, including a strong brand.
Step 5: Actual implementation
When everything prepared, it is time for businesses to follow the plan to build a culture with the following elements:
- Team participating in the project – Which department will participate and implement the first important factor. From there, businesses can calculate the time and workload for participating resources.
- Corporate culture communication – This helps employees understand the importance of changing the current culture, and how leaders must be the ones to convey cultural messages that support development for employees, as well as motivating them to breakthrough.
- Change the interior design, an open space – This will create a new working environment, and inspire employees to work with innovation. Besides, this creates confidence for employees to believe that the business is changing, and they will change too.
- Recruiting new talent – Building a new culture requires resources, and if possible, recruit more talent in charge. Since they will contribute new ideas from the outside, teaming up with veteran employees creates tremendous value.
- Build a suitable reward system – Redesigning a new reward model will be an opportunity for employees to work hard to adapt to the new culture. When new benefits are given along with accompanying criteria, employees will self-regulate their behavior to achieve that benefit. This is a very useful tool to help employees integrate into the corporate culture.
Step 6: Evaluate the results
Once you have implemented a new corporate culture in your organization, you should measure the results over time. Businesses can evaluate in the following ways:
- Do an employee satisfaction survey to know what is not perfect in the process of transforming corporate culture. The specialized department can use the email survey to collect information easily, edit it to suit the collective.
- In addition, enterprises can apply the employee turnover index (ETR), employee engagement index (eNPS), employee satisfaction index (ESI). With these three indicators, leaders can know where the corporate culture has a bottleneck, thereby making timely adjustments.
So the article has given the factors affecting corporate culture and six basic steps to build a new culture. Hopefully, BEMO helps businesses solve difficult management problems, and have a broader view.