Six Components of Organizational Culture
Every culture is unique, shaped by a multitude of factors. At Strengthscape, we’ve identified six essential components that form the foundation of a strong and winning organizational culture.
Vision & Mission
The cornerstone of any great culture is clear vision and mission statements. These statements do more than outline organizational values; they guide daily decisions and behaviors, helping align customers, suppliers, and other stakeholders. They create a recognizable brand and ensure that every company interaction reflects these core principles.
Core Values
With a solid vision and mission in place, the next step is defining core values. These values act as guidelines for the behaviors and mindsets needed to achieve the organization’s goals. Clearly communicated values create a standardized language for the company, ensuring consistency in how employees interact both internally and externally.
Actions
Values are only as good as the actions that reinforce them. If an organization values its people as its greatest assets, it must invest in their development and recognize their contributions. Actions such as a robust reward system and performance appraisals should reinforce these values, embedding them into the day-to-day operations and strategic reviews of the business.
Employees
Culture is driven by employees who share or are willing to embrace organizational values. World-leading companies enforce strict recruitment policies to find candidates who not only possess the necessary skills but also fit well with the existing culture. Research suggests that culturally aligned candidates are more likely to accept lower salaries and departments with such alignment experience lower turnover rates.
Storytelling
Every organization has a unique story that is a powerful tool for shaping culture. Whether these stories are formal or informal, identifying, shaping, and communicating them effectively can reinforce and enrich the cultural narrative. This makes the culture more tangible and relatable to all stakeholders.
Environment
The physical and geographical environment significantly influences organizational culture. For example, open workspaces encourage collaboration and are a hallmark of companies that value teamwork and transparency. Similarly, the regional location of a company can impact its culture, either reinforcing or contradicting the desired organizational behaviors.
These six components are not just elements but are active, dynamic parts of building and sustaining a culture that wins. While numerous other factors can influence organizational culture, focusing on these foundational aspects can greatly enhance the ability to shape a culture that aligns with strategic objectives and promotes a cohesive and productive work environment.
Conclusion
In conclusion, a strong organizational culture is built on a clear vision and mission, well-defined values, intentional actions, selective recruitment, powerful storytelling, and a conducive environment. Together, these create a robust framework for cultivating an environment where both the organization and its employees can thrive.
