Developing A Corporate Culture As Competitive Advantage

By M. Isi Eromosele

Corporate culture has become an important topic in business primarily during the last two decades. While corporate culture is an intangible concept, it clearly plays a meaningful role in corporations, affecting employees and organizational operations throughout a firm.

While culture is not the only determinant of business success or failure, a positive culture can be a significant competitive advantage over organizations with which a firm competes.

People come from a variety of ethnic backgrounds and cultural heritages, have a variety of personalities, and have been shaped by a diverse range of experiences. When people from diverse backgrounds are brought together in a work environment, these factors will manifest themselves in an infinite variety of ways.

Over time a dominant set of norms will emerge, guiding the way in which work is accomplished within the organization. This phenomenon gives rise to the concept of corporate (or organizational) culture.

Corporate Culture Defined

There are many ways to define corporate culture because it is influenced heavily by factors such as the industry in which the company operates, its geographic location, events that have occurred during its history, the personalities of its employees, and their patterns of interaction.

A positive corporate culture typically encompasses several key elements.

First, it is fostered not merely by a mission statement, but by a clear corporate vision, which is a mental picture of the company’s desired future. Corporate visions are most effective when clearly communicated by top organizational leaders who exhibit strong values and have dynamic, charismatic personalities.

Second, corporate culture is supported by corporate values that are consistent with the purpose of the company and aligned with the personal values of organizational members. Corporate vision and values permeate all levels of the organization and are consistently modeled by top management.

Third, employees are highly valued at all levels of the organization (they are often referred to as ``associates’’ or ``team members’’), and there is extensive employee interaction both within and across functional departments.

Fourth, the culture is adaptable, adjusting quickly in response to external conditions and is consistent, treating all employees equally and fairly. Finally, corporate culture is perpetuated in some way, perhaps through tangible symbols, slogans, stories, or ceremonies that highlight corporate values.

Corporate culture is determined by levels of sociability (a measure of sincere friendliness among members of a community) and solidarity (a community’s ability to pursue shared objectives quickly and effectively). The combination of these dimensions gives rise to categories that are labeled as networked, mercenary, fragmented, and communal.

None of these categories is considered to be better than the others. Instead, they serve as a way for management to determine where their culture fits relative to other types of cultures.

A networked culture is distinguished by high sociability and low solidarity. Individuals in this type of culture feel like family and socialize often. Promotions are achieved and work is accomplished via informal networks or subcultures within the organization.

A mercenary culture has low sociability and high solidarity. Individuals do not interact socially but are united in supporting strategic business objectives. They do not tend to exhibit a strong degree of loyalty, staying only as long as their personal needs continue to be met.

A fragmented culture has low sociability and low solidarity. People in this type of organization rarely interact. They may work with their office doors shut or from home. This type of culture might be found in a law office or in a company that is downsizing.

Finally, a communal organization has high sociability and high solidarity. This type of culture is often found in small start-up companies. Members of such an organization work very closely together for long hours and will likely socialize together. They strongly identify with the corporate culture and have a high sense of fairness so that rewards are shared equally.

Building A Positive Culture

An organization that is able to maintain a positive culture is likely to enjoy many benefits. When organization members identify with the culture, the work environment tends to be more enjoyable, which boosts morale. This leads to increased levels of teamwork, sharing of information, and openness to new ideas.

The resulting increased interaction among employees activates learning and continuous improvement because information flows more freely throughout the organization. Additionally, such a culture helps to attract and retain top employees.

Today’s globally-competitive business environment has made a positive corporate culture a critical aspect of success for firms. No longer just a competitive advantage, it has become a prerequisite for success by having a great impact on employee productivity and morale.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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