Corporate Culture: Who Really Needs It Anyway?

What is Corporate Culture?

Corporate culture consists of the values and attitudes of employees in the business or organization. A healthy corporate culture values each employee in the organization regardless of his/her job duties, which results in employees working as a team to meet the company's and their own personal needs. Culture is the self-sustaining pattern of behavior that determines how things are done. There is no single rubric for a “correct” company culture—every business is different—but a consistent and strong set of values is needed to remain competitive.

“Culture is simply a shared way of doing something with a passion.”

(Brian Chesky, Co-Founder, CEO, Airbnb)

“We believe that it’s really important to come up with core values that you can commit to. And by commit, we mean that you’re willing to hire and fire based on them. If you’re willing to do that, then you’re well on your way to building a company culture that is in line with the brand you want to build.”

(Tony Hsieh, CEO, Zappos)

Why is Corporate Culture Important?

Corporate culture has arguably always been important, but it’s only become a popular point of discussion in the past 20 years or so. Corporate culture is becoming a more popular consideration and development. More companies are shifting their attention to creating more thorough brand cultures, and preserving them through ongoing development. Studies have indicated measurable increases in turnover for companies with poor or non-existent corporate culture.

Studies show that, in general, 66% of the American workforce is disengaged or actively disengaged. A strong positive culture can enhance employee engagement by 30%, resulting in up to a 19% increase in operating income, and a 28% increase in earnings growth.

“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic.”

(Howard Schultz, CEO, Starbucks)

5 Types of Corporate Culture

Culture affects every aspect of your company, from the public’s perception of your brand to your employees’ job satisfaction to your bottom line. Because there’s so much at stake, it’s important that your corporate culture is adaptable and open to improvement – which starts with being able to articulate just what kind of culture your company has.

While no two cultures are exactly alike (the nuances are too great!), there are defining characteristics that tend to place organizational cultures into one of five categories, or types. While no one culture is the best or worst of the bunch – each has its pros and cons – there’s something to learn from companies that fall under any of these categories.

1.    Team-first Corporate Culture (“The Comrade”)

Team-oriented companies hire for culture fit first, skills and experience second. A company with a team-first corporate culture makes employees’ happiness its top priority. Frequent team outings, opportunities to provide meaningful feedback, and flexibility to accommodate employees’ family lives are common markers of a team-first culture. Netflix is a great example – their decision to offer unlimited family leave gives employees the autonomy to decide what’s right for them. Team-oriented companies hire for culture fit first, skills and experience second. Why? Because they know happy employees make for happier customers. It’s a great culture for any customer service-focused company to embody, because employees are more likely to be satisfied with their work and eager to show their gratitude by going the extra mile for customers.

Zappos is famous for its fun and nurturing culture, as well as its stellar customer service. As their CEO once famously said, “Zappos is a customer service company that just happens to sell shoes.” And the way they keep employees satisfied with their job is by not only letting them express themselves with whacky desk decor (which everyone loves), but by giving employees the autonomy to help customers the way they see fit, rather than following strict guidelines and scripts. Customers appreciate the straightforward, personable service.

“We believe that it’s really important to come up with core values that you can commit to. And by commit, we mean that you’re willing to hire and fire based on them. If you’re willing to do that, then you’re well on your way to building a company culture that is in line with the brand you want to build.”

(Tony Hsieh, CEO, Zappos)

Zappos has become almost as well known for its culture as it is for the shoes that it sells online. What does that culture look like? It starts with a cultural fit interview, which carries half the weight of whether the candidate is hired. New employees are offered $2,000 to quit after the first week of training if they decide the job isn’t for them. Ten core values are instilled in every team member. Employee raises come from workers who pass skills tests and exhibit increased capability, not from office politics. Portions of the budget are dedicated to employee team building and culture promotion. These ten core values that Zappo’s live by are:

? Deliver WOW Through Service

? Embrace and Drive Change

? Create Fun and A Little Weirdness

? Be Adventurous, Creative, and Open-Minded

? Pursue Growth and Learning

? Build Open and Honest Relationships with Communication

? Build a Positive Team and Family Spirit

? Do More with Less

? Be Passionate and Determined

? Be Humble

Zappos hires according to cultural fit first and foremost. It has established what the company culture is, and fitting into that culture is the most important thing managers look for when hiring. This promotes the culture and happy employees, which ultimately leads to happy customers.

2.    Elite Corporate Culture (“The Athlete”)

Companies with elite cultures are often out to change the world by untested means. An elite corporate culture hires only the best because it’s always pushing the envelope and needs employees to not merely keep up, but lead the way (think Google). Innovative and sometimes daring, companies with an elite culture hire confident, capable, competitive candidates. The result? Fast growth and making big splashes in the market. Companies with elite cultures are often out to change the world by untested means. Their customers are often other businesses that need their products to remain relevant and capable in a new environment—one often of the elite-cultured company’s creation.

SpaceX is a high-profile example of an innovative (and relatively young) company doing big things in aerospace manufacturing and space transport. Employees report feeling elated to literally launch rockets, but expectations are extremely high and 60 to 70-hour work weeks are the norm. Still, knowing that they’re doing meaningful, history-making work keeps most employees motivated.

"I don't believe in process. In fact, when I interview a potential employee and he or she says that 'it's all about the process,' I see that as a bad sign. The problem is that at a lot of big companies, process becomes a substitute for thinking. You're encouraged to behave like a little gear in a complex machine. Frankly, it allows you to keep people who aren't that smart, who aren't creative."

(Elon Musk)

3.    Horizontal Corporate Culture (“The Free Spirit”)

Titles don’t mean much in horizontal cultures. Horizontal corporate culture is common among startups because it makes for a collaborative, everyone-pitch-in mindset. These typically younger companies have a product or service they’re striving to provide, yet are more flexible and able to change based on market research or customer feedback. Though a smaller team size might limit their customer service capabilities, they do whatever they can to keep the customer happy—their success depends on it. Communication between the CEO and office assistant typically happens through conversations across their desks to one another rather than email or memos. This is the experimental phase, where risks are necessary and every hire must count. Horizontal cultures can suffer from a lack of direction and accountability. Collaboration is encouraged while still maintaining clearly defined goals and a knowledge of who’s primarily responsible for what. Horizontal structure shouldn’t mean no structure.

Basecamp is the perfect example of a successful company that maintains a startup-like mindset. Originally founded as 37Signals, Basecamp announced that it would focus exclusively on its most popular product and maintain its relative small size rather than grow into something much bigger and broader.

“Treating people right is fundamental to how we do business. We treat our customers as we’d want to be treated, we treat each other like family, and we treat ourselves to a good day’s work and a good night’s sleep. Our goals have always been the same: Have fun, do exceptional work, build the best product in the business, experiment, pay attention to the details, treat people right, tell the truth, have a positive impact on the world around us, give back, and keep learning.”

(Jason Fried, CEO, Basecamp)

4.    Conventional Corporate Culture (“The Traditionalist”)

Traditional companies have clearly defined hierarchies and are still grappling with the learning curve for communicating through new mediums. Companies where a tie and/or slacks are expected are, most likely, of the conventional sort. In fact, any dress code at all is indicative of a more traditional culture, as are a numbers-focused approach and risk-averse decision making. Your local bank or car dealership likely embodies these traits. The customer, while crucial, is not necessarily always right—the bottom line takes precedence. But in recent years, these companies have seen a major shift in how they operate. That’s a direct result of the digital age, which has brought about new forms of communication through social media and software as a service (SaaS). Today, traditional companies still have clearly defined hierarchies, yet many are grappling with the learning curve for communicating through new mediums that can blur those lines. Facing this challenge can be a big opportunity for learning and growth, as long as it’s not resisted by management. While new office technology is often low on management’s list of concerns, more traditional companies are starting to experiment with it as more millennials enter higher-up positions.

Founded in 1892, GE is about as traditional as they come and is well-known for its cut-and-dry management practices. Just recently, however, it eliminated its traditional performance review in favor of more frequent conversations between management and employees and is even launching an app to help facilitate feedback. It’s the perfect example of an old-school company embracing technology and change.

“Soft culture matters as much as hard numbers. And if your company’s culture is to mean anything, you have to hang — publicly — those in your midst who would destroy it. It’s a grim image, we know. But the fact is, creating a healthy, high-integrity organizational culture is not puppies and rainbows. And yet, for some reason, too many leaders think a company’s values can be relegated to a five-minute conversation between HR and a new employee. Or they think culture is about picking which words — do we “honor” our customers or “respect” them? — to engrave on a plaque in the lobby. What nonsense.

(Jack Welch)

5.    Progressive Corporate Culture (“The Nomad”)

Uncertainty is the definitive trait of a transitional culture, because employees often don’t know what to expect next. Uncertainty is the definitive trait of a progressive culture, because employees often don’t know what to expect next. Customers are often separate from the company’s audience, because these companies usually have investors or advertisers to answer to. But it’s not all doom and gloom. A major transition can also be a great chance to get clear on the company’s shifted goals or mission and answer employees’ most pressing questions. Managing expectations and addressing rumors that pop up through constant communication are the best things a company can do to prevent employees from fleeing or cowering. Change can be scary, but it can also be good, and smart employees know this. They embrace change and see it as an opportunity to make improvements and try out new ideas. And hopefully, they rally their colleagues to get on board.

Linkedin's $1.5 billion acquisition of Lynda.com was one example of companies in transition. Ultimately, it’s a match that made sense—the companies’ goals are in alignment with one another, and LinkedIn’s users benefit from the partnership. LinkedIn still has a lot to prove to its stockholders (their shares fell after the company attributed its annual revenue forecast to the acquisition), and it reorganized its sales team and changed its advertising methods. But by being straightforward and showing how these changes will ultimately lead to greater benefits, both LinkedIn and Lynda.com can thrive.

“Ten years ago, had you asked me about culture and values I would have rolled my eyes and recited a line from Dilbert. But when I started as CEO I began to appreciate just how important they were. Culture and values provide the foundation upon which everything else is built. They are arguably our most important competitive advantage, and something that has grown to define us.”                    

                                                                                               (Jeff Weiner, CEO, Linkedin)

Two Examples of Great Corporate Cultures

Employees of Twitter can't stop raving about the company’s culture. Rooftop meetings, friendly coworkers and a team-oriented environment in which each person is motivated by the company’s goals have inspired that praise. Employees of Twitter can also expect free meals at the San Francisco headquarters, along with yoga classes and unlimited vacations for some. These and many other perks are not unheard of in the startup world. But what sets Twitter apart? Workers rave about being part of a company that is doing something that matters in the world, and there is a sense that no one leaves until the work gets done.

The four ways that Twitter engages its employees are:

? CEO-led Management Sessions. A big part of building a strong business starts with building strong managers. Just as Jack Welch personally taught courses at the famed GE University, the Twitter CEO leads a “Managing at Twitter” session at least once a quarter. The opportunity to spend this much time with the CEO to understand his management point-of-view sets the example of great management throughout the company.

? Measure it. Most companies conduct an employee satisfaction survey occasionally or at most once a year. Twitter executes their “pulse” survey every six months. Short and focused, the survey of approximately 15 questions measures current engagement levels and includes open ended questions to capture employees’ ideas for improvement. A monthly people dashboard also stays on top of attrition levels, learning impact, and organizational span of control.

? Focus on the Core. Traditional employee engagement efforts often fail because they are complicated and programmatic. Twitter values simplicity, which is why it developed just five core skills that every employee (from individual contributors to managers & leaders) is working toward. They aren’t just competencies, but, rather, skills that will be woven into how people are being evaluated and recognized. They are: Communication, Development, Direction, Change and Collaboration. Twitter wants people to learn every day. Establishing core skills to focus on helps employees with a context for doing so.

? Give authentic & fearless feedback. Providing future-oriented, ongoing performance-improving feedback is a critical skill—for everyone. Although there is currently a twice-a-year official performance review process at Twitter, the emphasis is increasingly on giving continuous feedback—up, down, and across. Quarterly learning labs have been launched to support employees in both giving & receiving feedback. You can’t beat having team members who are pleasant and friendly to each other, and are both good at and love what they are doing. No program, activity or set of rules tops having happy and fulfilled employees who feel that what they are doing matters.

Drew Estate broke virtually every unspoken rule in an industry defined by tradition to create a cigar that won a cult following. Then they parlayed that stronghold into a powerhouse brand whose success galvanized the cigar industry to rethink flavored cigars. And that was just the beginning.

“The Rebirth of Drew Estate” is about reinvention, but from a structural and infrastructural standpoint. It’s about going back to their roots and highlighting their core competencies, while at the same time defining best practices for their retail and distribution partners. The Drew Estate story is one of daring, heartbreak & success but, most of all, one of passion for cigars and the country of Nicaragua, where we have been making cigars since 1998.

Jonathan Drew & Marvin Samel (the Founders of Drew Estates), two frat brothers, are not your average cigar makers, their story does not start in Cuba, or with fathers in the cigar business. It started with a dream, and through their can-do spirit and never-say-die attitude made Drew Estate one of the premier cigar manufacturers on the planet. They started out small…. Small, as in a 16-square foot retail kiosk in the World Trade Center in NYC. The early days were fraught with peril, and the school of hard knocks. Picking themselves up, dusting themselves off and never backing down would become a trademark in the years to come for them & their fledgling cigar company, Drew Estate.

Drew Estate is credited with the social aspect of cigar smoking, not just dudes sitting in their leather chair alone at home. Premium cigar culture is about friendship and community. Keep it real. Keep it fun!” Every year, Drew Estate releases different artistic products that support its brands and the culture of cigar smoking. Art is so important to the Drew Estate culture. Art is built into the DNA of Drew Estate. Art is their expression and culture and time.

 “Fuck making the List, make the Legacy” is a fundamental business approach at Drew Estates that should be taught at Wharton Business school in the first-year curriculum.

The Importance of Employee Perks in Corporate Culture

While not the “panacea” for a meaningful corporate culture, employee perks certainly have their place as “props” to reinforce any desired corporate values. Companies with strong employee perks that reinforce a culture include:

Google:

? An unlimited supply of tasty meals and snacks, so you’re never hungry at work!

? Feel free to bring your dog into the office, they’re always welcome at Google HQ..

? When a Google employee passes away, their spouse is given half their salary for 10 years.

Microsoft:

? Employees are given a free membership at ProSports Club.

? There is an on-campus health center that staff are free to drop in at.

? A variety of entertainment in the office, including Xbox, pool tables and arcade machines.

Apple:

? Provides financial assistance to the family of an Apple employee who has passed away.

? Mothers can take up to 18 weeks maternity leave, whereas fathers can take 6 weeks of paternity leave.

? Every few weeks they hold an event called “Beer bash” where they serve free beer and have live bands playing.

McDonalds:

? There is a company car program which includes insurance, maintenance and repair.

? Whenever an employee reaches a work anniversary (5 years,10, 15, 20, etc.) they are rewarded with an extra week of holiday.

? After every 10 years of service to the company, employees are able to take an 8 week sabbatical.

Starbucks:

? Employees can get a tuition fee reimbursement for Arizona State University’s online program that covers two years of classes.

? A 30% in store discount and one pound of coffee or tea free each week.

? A sponsored retirement plan.

Nestle:

? Discounts on nestle products, cinema tickets and mobile phones.

? Up to 90% of dining at a selection of locations.

? Air, hotel and car rentals.

Marriott:

? Healthcare benefits for employees who work 30+ hours a week.

? Significant discounts on rooms at Marriott hotels for family and friends and once you have worked there for 25 years you get free Marriott accommodation for life.

? They frequently recruit and promote from within the company.

SouthWest.com:

? Free flights with SouthWest Airlines.

? Discounts and guest passes for family and friends.

? Annual employee events.

Disney:

? Access to Mickey’s Retreat, which is a place for employees to relax during downtime at work.

? A huge variety of discounts for the parks, hotel, dining, etc.

? Behind the scenes tours and talks.

3M:

? Weight management program reimbursement.

? Online health classes.

? Financial and legal consultation.

Cisco:

? A baby gift program to welcome new additions to employee’s families.

? They have a “fun fund” for team celebrations and team building exercises.

? They also offer wellness programs for employees and their spouse.

Mattel:

? Every Friday is a half day.

? In Italy they are allowed to take two half days a week to take part in English lessons.

? Employees are offered paid time off to attend school-related events and to participate in volunteering through Mattel’s Children’s Foundation.

Building a Corporate Culture at Seychelle Media

As a relatively new Digital Marketing Agency, we have the opportunity to build a corporate culture from scratch. We have begun the process, with our current team of around 24 members, of building that culture around 4 core values:

? ROI-Centric: We don’t like “fluff”. Every idea, every campaign and every possible client recommendation must be single-minded in purpose; “Will this make our client money?” This may seem obvious. But, in a digital world often polluted by nonsensical “awareness” campaigns and other forms of “digital fluff”, we’ve found our niche in only delivering ROI-based customer acquisition strategies on behalf of our “for-profit” clients. Everything we do is founded on one underlying guiding tenant: conversion!

? Curiosity: Albert Einstein was once quoted as saying “I am neither clever nor especially gifted. I am only very, very curious.” We don’t proclaim to have every answer. Who does? We do however, have an insatiable curiosity. A curiosity that drives us to find the right questions to ask in the pursuit of our client’s ROI objectives. We believe that innovation drives profitability but curiosity is the key driver in innovation. That hold true for our clients and for the manner in which we question and challenge each other internally.

? Creativity: We are a passionate bunch. We love to dream. We also love to think. And we’re inspired by the creative genius we see our team output daily. We are a group of “wild minds” and “disciplined eyes”. At the core of our strategy is identifying and hiring the most talented creative thinkers possible and molding them into brilliant ROI machines. We do not encourage “out of the box” thinking; we simply refuse to acknowledge that any box exists.

? Disruption: Disruption for the sake of being disruptive is folly. We believe that true disruptive innovation is born out of our other three values; a quest for ROI, insatiable curiosity and unbridled creativity. Disruption isn’t just about “how to do it different”. It’s about having the vision to see where something is likely to go and arriving before anyone else does with a plan that no one else thought of.

The underlying philosophy guiding our entire evolution and corporate culture, the “glue” if you will, is the delivery of what we call “NLS” (Next-level-sh*t.) Pardon our language; but it’s what we do. We vow to earn our clients’ business every day by delivering to them next-level strategy, technology, design & implementation. No matter what, we vow to never lose this commitment to ourselves and to our clients.

Do we always deliver “NLS” to our clients and in our internal interactions with each other? No, we don’t – not yet. We fall short on occasion. The good news is that we immediately recognize these shortfalls and address them openly, transparently and with unbridled passion. However, we DO always use the “NLS” measuring stick to determine where we fall short and where we need to focus time, energy and resources to improve and exceed our “NLS” commitment.