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James M. Lynch

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What the Heck Is Corporate Culture?

Posted: 07/ 1/11 04:50 PM ET

"We know what training is, but what the heck is 'culture'?" Those words were spoken by the new owners of the company I had spent 10 years helping to build from a small regional player to the recognized national industry leader. These corporate leaders were referring of course to my job title as Chief Training Officer, in charge of training and cultural development.

I was at once relieved and scared by their reaction to the 'culture' reference and shook my head as I could see the end was near. The relief came from the fact that we were finally selling the business and I could move on, full-time, to expanding my own coaching practice and finding clients that I could help grow and develop the way I'd done it there.

I was scared because it was clear to me that the new owners of the company didn't realize that what made us a success as a company wasn't just our employees, contracts, reputation and cash flow. What made us great as a company was our culture. In fact I had, as training officer, asked the question many times over the years, and the answer to the question "what's the best part of our company?" was almost always: "The culture."

As a coach marketing myself to new companies I had to pull back, though, from saying 'Culture Coach for hire' and just say 'Executive Coach.' It seemed to me that people understood when I told them that I was an executive coach, or a performance coach or even a life coach, but when I told them I was a Culture Coach I was usually met with a blank stare.

I realized that in order to have my vision realized and contribute to the way the world works, I'd have to come in as a more user friendly labeled type of coach and it's worked, so far. But again: culture?

Culture is an often overlooked and under appreciated tool for creating successful organizations
.

The Wikipedia definition of Corporate Culture is " ... an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization." Simple, eh? Maybe not.

As in the story of the CEO who says to the head of HR, "I've been hearing a lot about the value of an investment in corporate culture: go buy us one!" there is a bit of education to be shared on culture and the value for all businesses, even the smaller ones. Over the next few weeks I'm going to share some ideas on culture and hopefully get some feedback and ideas from readers.

I'd like to begin by asking anyone who has a managerial or ownership stake in a business to begin noticing what is the culture they've created in their workplace. Ask around, of your employees and customers, vendors and others, "How would you describe the culture of our company?." I'd be curious to hear the responses.

Don't think you have a culture? You do -- every business does. It's just a question of whether or not it works for you and if it's a conscious choice you're making.

It's not something you want to leave to chance and, if you're interested in growth or creating breakthroughs, focusing on culture can be the best investment you can make BEFORE investing in new employees, machines or marketing.

Start here to go there.

I welcome any discussion or comments here. It's a chance to say something good about your corporate culture or tell your horror stories. See you next week.

 
 
 

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02:26 PM on 07/04/2011
When I was in business school, one of my favorite management professors told us: "If you find yourself as a CEO or manager of a large division, remember to take care of the people at the bottom of your organizational chart. Because when the rubber meets the road, these are the people actually doing the work for your company. They are having the most direct customer contact. If those people are miserable or feel like you don't have their back, their poor performance, whether it is intentional or not, can ruin your company faster than you can build it"

As I entered the workforce, I was surprised to find the companies I worked for often placed the most stress on the people "at the bottom of the org chart". Often that is where they assign the blame when a customer complains, even if that person did everything they could with the resources available to them to prevent the issue.

I have come to realize that this is the best example of the difference between an educational environment and the corporate environment where profit, not common sense, is often the sole motivational factor for the decisions made by the organization. Doing the right thing for your employees and customers is often a more expensive route to take.
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James M. Lynch
Coach, Author, Seminar Leader
02:52 PM on 07/06/2011
Dino; I've got lots of stories about CEOs who want a coach to 'fix' their people but won't do any work on themselves. Bad beginning! As I mention in the story, the ignorance of culture by the new owners was the beginning of a down fall by focusing only on profit, not enough on people. You can't of course, ignore profit and run a 'feel good' company into the ground (or actually you can) but there is a lot of room in between two opposites. Glad to know you're out there with a solid grounding in the value of the people on the front line, no matter what challenges you face, I know we'll make a difference.
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phree
free your mind
01:17 PM on 07/04/2011
Corporate cultures can either make or break a company. This article is incredibly important for establishing the conversation. A dysfunctional corporate culture can seriously disrupt a company's profit stream and demoralize employees. Based on my own experiences working in very traditional, top-down autocratic corporate cultures where employees do not have a voice, I can say it is the #1 problem in dragging down the potential achievements of these organizations. Women are also excluded from top roles in decision making, a serious red flag in any company.

The owner/manager's ideology determines the workplace and mood for everyone below. Here's a great example: I work in a completely dysfunctional environment that is managed autocratically. This management style is killing our company and causing many, including myself, to leave despite very uncertain economic times. After 13 years working both part and full-time I have come to the conclusion that the company will never allow employees opportunities to innovate, lead or significantly profit from our achievements. Retirees are hanging on until they can retire and everyone else is working on an escape plan. Our company is dying precisely because the educated workforce it hired does not like being treated like children and micromanaged by autocrats. Will our company listen? Will they learn? Never. They will die clinging to an outmoded ideology.

Not a nice place to work, but a great place to learn "what not do to" if you run a company.
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James M. Lynch
Coach, Author, Seminar Leader
02:56 PM on 07/06/2011
Phree;
How often I've heard similar sentiments to yours from people in the work force. I really believe the cost of self inquiry is so great that they'd rather pay the cost of pushing a behemoth rather than sailing an ocean liner, with every oar rowing in the same direction. I hope you'll find something, and I know they're out there, where you can feel contributed to and appreciated and where your efforts make the company more successful in return.
James.
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phree
free your mind
07:36 PM on 07/06/2011
James:
Thanks for your kind reply. Actually, I am considering creating my own company because I am done working for dysfunctional organizations. I can see no benefit in working for others who do not appreciate your talents. Like you I have a background in psychology, teaching and coaching so I am hoping to help other companies thrive.

Thanks for writing the article! :-)
12:59 PM on 07/04/2011
I've been studying Appreciative Inquiry alot lately and love the idea of creating with the whole system a culture of successes based on strengths that are not only utiilzed, but encouraged by and valued at the workplace. Seems there's lots of evidence of this kind of culture dramatically affecting the bottom line.
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James M. Lynch
Coach, Author, Seminar Leader
02:58 PM on 07/06/2011
Annette,
I like the information you're sharing; good luck bringing this out. I know that Marcus Buckingham books and studies like 'Now Discover Your Strengths' and the whole concept of servant leadership have a great many champions. Newer companies, especially those who have primarily knowledge based workers, seem to grasp these ideas best.
Good luck and please keep me posted.
James.
04:54 PM on 07/06/2011
Thanks James! I am also studying servant leadership. Though new in this field, it intuitively feels right..probably resonates with my personal values. Good to know your experience tells you that newer companies are open to this kind of thinking.

I am putting feelers out to local companies about AI. Got a nibble at MasterCard. We'll see.

Annette
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Anne Naylor
Celebrant, Weddings and Other Blessings
01:06 AM on 07/02/2011
Hi James,

Culture is a good word I have been applying recently to certain communities. A culture in which people are more concerned about the opinions of others, and retaining their approval, is one that denies the individual their authenticity. There is a price to pay for that.

I know wonderful cultures in which people thrive as individuals. They tend to embody courage, compassion and integrity. Or the principles of corporate governance which are defined as accountability, transparency and probity.

Good conversation you have opened here!

Best,
Anne
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James M. Lynch
Coach, Author, Seminar Leader
10:51 PM on 07/02/2011
Anne;
Nice to hear from you.The conversation about culture are too often assumed. I think a more conscious corporate world would have prevented the mortgage meltdown, for instance. The good news is that more and more companies are making it a priority, like Google, and I'll share about that in the next part of the series.
You're absolutely right, though, that discussions of culture in all areas of life can provide rich results.
James.
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HMDMSR
Workers of the world, unite!
07:53 PM on 07/01/2011
It would be better to replace discussions of culture with studies of ideology. What ideologies are present in a particular workplace, is the question that needs to be asked and answered.
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James M. Lynch
Coach, Author, Seminar Leader
10:58 PM on 07/02/2011
HMDMSR
Why split hairs in terms? A corporate culture is a vision and it's manifestation in daily practice and results. The issue is whether the conversation actually occurs or is assumed and whether it values people as much as dollars. Let's all get behind that in our workplaces and we'll create advances . . .
James.
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HMDMSR
Workers of the world, unite!
11:15 PM on 07/02/2011
It's not splitting hairs. Ideology has a distinct meaning.

Why are Americans so tame and meek while they're in the workplace? Why is the workplace arranged the way it is, with flunky managers serving their masters, all at the expense of working folks? Why are there owners to begin with? Why are things the way they are, period?

All of these questions need to be addressed within a study of ideology.
06:59 PM on 07/01/2011
Same as gang culture: Everything for ME and f#$$k everyone else.
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James M. Lynch
Coach, Author, Seminar Leader
11:03 PM on 07/02/2011
ONrecess;
Thanks for commenting. I had to consider your remark for a bit to be able to 'get it' but I think you're onto something; they're both cultures of survival and that means they come from fear. I'm grateful for the companies I'm working with. One of my clients said yesterday, in fact, that they'd love to have me on full-time dealing with culture. I'll share more as we go about some companies that prize culture and create some good too.
All the best,
James