Why organizational culture matters to your small business

When you first launched your business, you likely had a specific goal in mind. You may have defined the reason for your company’s existence in your mission statement and described its ideal future in your vision statement. As the leader at the helm of a start-up, the core beliefs, values and standards you set out for your business in its early stages will set the tone for its organizational culture. Organizational culture is important. Here are a few reasons why it matters:

  • A strong organizational culture can help give employees direction. It serves as a compass for organizational action and can help guide employees on how to behave with colleagues, customers and management
  • A well-defined organizational culture can help you differentiate your company from its competitors
  • A supportive organizational culture can lead to increased loyalty among employees and reduced turnover

On the flip side, an organizational culture that is not compatible with its business goals can interfere with the success or even the existence of a company. So what can you do if you determine that your business’ current organizational culture is inhibiting its growth?

Follow these tips for implementing an organizational culture that works for your business

Recognize the need for change:  By recognizing that your business’ corporate culture may need a shake-up, you’ve already taken an important step in the right direction.

Keep the lines of communications open: Encourage discussion and communicate openly with employees about the business’ goals and vision.

Lead by example: It isn’t enough to just communicate the organization’s values, rules and beliefs to employees. Managers need to lead by example and show employees how they live the organizational culture; it needs to be reflected in their actions.

Recognize and reward employees who genuinely embrace the new standards.

There are many different types of business cultures, and the one your business adopts can affect everything from the public’s perception of your brand to your employees’ job satisfaction.

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