Why Is It Important to Define Your Corporate Culture?
Have you had an employee quit, and when asked why they are leaving their answer is “better opportunity”, “more money”, or “I found something better”. I am here to tell you that 90% of those employees left because of you and your company’s culture (or lack of culture). As we discussed in our previous article, turnover is a company’s largest hidden expense. Not defining, and living your culture daily, is killing your bottom line.
What Is Corporate Culture?
What is culture? Corporate culture is the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.
Intentional vs. Accidental Corporate Culture
When corporate culture is not defined, it develops organically (accidentally) over time from the traits of the people the company hires. As a business owner you want to intentionally create and define your culture by hiring employees that share the same belief system as the culture you have established, and live your culture every day in your business decisions.
Define Corporate Culture by Acting Out Vision and Mission
Now you are asking yourself, how do I define my corporate culture? It’s actually quite simple, your culture is defined by your vision and mission for your organization and living those out in each business decision.
What Are Vision and Mission Statements?
In order to take a deeper look at culture, let’s go over the basics of what vision and mission statements are. A mission statement defines the company’s business, it’s objectives and its method to reach those objectives. A vision statement describes the desired future position of the company. Elements of the vision and mission statements are often combined to provide a statement of the company’s purposes, goals and values. Your mission statement describes what a company wants to do now, a vision statement outlines what your company wants to be in the future. A mission statement is intended to clarify the what and who of a company, while a vision statement adds the why and how.
Hire Employees Who Match Your Vision and Mission
Looking at all of the elements of vision and mission statements of an organization it is now clearer to see how they impact the organizations culture. The next step to creating culture is hiring employees who exhibit traits that match your organizations vision and mission. For example, you have a vision to provide the best customer service in your industry and you have a mission to grow your business by 50% annually you would want to hire employees that have traits that match the vision and mission. Therefore, when you are hiring you want to look for individuals with the following traits:
- Customer Service Focused
By defining the vision and mission, you can hire employees that exhibit the valued traits, therefore creating your corporate culture to match the vision and mission of the company.
Define Vision and Mission > Hire Employees Who Are a Fit
Take a moment to respond to the following:
- Create a vision statement for your company.
- Create a mission statement for your company.
- What traits in your own character (and/or current employees) fit the vision and mission statements you just created?
- What traits are missing in your own character (and/or current employees) that are a necessary match to your vision and mission statements?
- How will your company fill in the missing character traits that are needed to actualize your mission and vision?