What is Company Culture?

Culture is one of those topics that everyone believes is important, but very few people can define what it is. As a “strategy guy”, the quote often attributed to Peter Drucker that “culture eats strategy for breakfast” certainly gets my attention. The simplest definition of culture is “the way we do things around here.” Strategies and plans are relatively easy to develop, but if they conflict with the established culture, then they are likely to fail.

Longtime MIT Sloan School of Management professor Edgar Schein said that culture is to an organization what character is to an individual. He developed a model for culture with three layers: artifacts, espoused values, and basic assumptions. From what I have seen in companies that I have worked with, I think a model similar to Schein’s can be helpful, but with perhaps a bit more actionable and workable approach. Like Schein, I think of three layers that define culture: Purpose, People, and Process.

Building a great culture doesn’t happen by accident. It takes thought, planning, and action. Companies that have great cultures may not have used the framework I’ve described in the article linked below, but I hope this can be helpful to you as you build a great culture in your business. Let me know if I can help.

Read the full article here.

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