Southwest Airlines, Wal-Mart and Tyson Foods have been the top three performers in the last two decades—in terms of financial returns. These firms exists in highly competitive industries but somehow found a way to be profitable. The sustained success of these firms had little to do with business advantages in the market place. Rather, business values and personal beliefs and vision of the leaders took these businesses to heights they could not attain otherwise.
Business culture is usually developed by the founder who is usually driven with a vision and is able to effectively share it. An effective business culture is paramount to success: Culture has a powerful effect on the performance and long-term effectiveness of a business.
This articles takes a brief peek at what is business culture.
What is business culture?
Culture is a way of doing things. It is the set of shared values and beliefs shared within the business. These values though developed within are communicated to external stakeholders like customers.
Culture of excellence
Great business cultures do not just happen but inspired by the leaders and communicated to all who interact with the business. If you have a culture of excellence, then you have to develop excellent attributes. Some attributes ingrained in a business of excellence are:
- Make decisions based on facts rather than assumptions
- Encourage all team members to confront hidden assumptions
- Say what they will do and do what they say
- Reward team members for taking chances
- Having a common goal and inspiring all team members to work hard towards that goal
When you have a culture of excellence, you attract people of excellence and repel mediocre people. People who do not fit in do not last very long in a business of excellence.
Lastly, excellent business leaders are consistent in their approach: Team members know what to expect of them. When a business’ internal team works efficiently, it is communicated to the external world and the business is reckoned as one people like to work with. This does not happen overnight but it takes intention on the part of the leader.
The short of all this is great business cultures are the result of having great leaders.