What is Company Culture and How Can You Change It?

Changing a company's culture is a strategic process that requires clear definition, measurable goals, and accountability to significantly improve talent attraction and employee retention rates. A well-defined culture establishes a business's core identity and is a powerful tool for attracting like-minded talent.

What is Company Culture? Company culture refers to the shared values, beliefs, and behaviors that determine how a company's employees and management interact and handle business operations. It’s the social and psychological environment of an organization, influencing everything from decision-making and client relations to how teams collaborate. A positive culture is not just about perks; it's a fundamental business asset. According to industry assessments, companies with strong, positive cultures often see higher employee retention rates, as staff are more likely to stay where they feel aligned with the company's values.

What Are the Steps to Change Company Culture? Based on our assessment experience, successful cultural transformation follows a structured approach. It’s a reaction to market shifts or internal performance reviews and demands time and dedicated resources.

1. Define Core Beliefs and Behaviors: Start by revisiting your mission statement and values. Are they accurate? Work with leadership to translate these abstract values into specific, actionable behaviors that employees can understand and emulate daily.
2. Assess the Competitive Landscape: Analyze competitors' cultures. Is a rival's progressive approach yielding benefits? This isn't about copying but understanding market expectations. You can either adopt similar strengths or differentiate by building a unique, stronger culture.
3. Set Measurable Goals: Change driven by fleeting trends leads to confusion. Set realistic, data-driven goals for what you want the new culture to achieve. For example, aim to improve internal promotion rates by a certain percentage or increase employee satisfaction scores, measured through regular surveys.
4. Foster Accountability: If the previous culture was negative, leadership must acknowledge past mistakes openly. This builds trust and creates a more honest atmosphere, demonstrating a genuine commitment to positive change.
5. Allow Time for Growth: Cultural change is a marathon, not a sprint. Communicate the "why" behind the changes clearly to all team members, solicit their feedback, and be patient. Profitable results will follow, but building collaboration and certainty takes consistent effort.

What Are Common Types of Company Culture? Understanding different culture models can help you decide the best direction for your organization. Here is a comparison of five common types:

How Can a Clear Culture Benefit Your Business? The advantages of a deliberate culture extend far beyond the office walls. A strong culture establishes a clear brand identity, helping a company stand out in a crowded market. It demonstrates positive action, showing customers and employees that the company lives by its stated values. Ultimately, it attracts and retains individuals who share the company's ethos, creating a more cohesive and productive workforce. Companies that invest in a positive culture not only build a better employer brand but also create a sustainable competitive advantage.

To effectively change your company's culture, focus on clearly defining your values, setting measurable goals, and maintaining leadership accountability throughout the process.