What is an Organizational Culture
On Startup Day, we need to examine how we can help Startups live long, thrive, and continue within the market. But before we answer this question, let's take a look at some of the most successful well-known startups:
Gore
W. L. Gore & Associates, Inc. is an American multinational manufacturing company specializing in the production of products based on fluoropolymers. It is a privately held company based in Newark, Delaware. It is best known as the developer of waterproof, breathable Gore-Tex fabrics. Gore has more than 11,000 employees, called Associates, with manufacturing facilities in the United States, Germany, United Kingdom, Japan, and China, and sales offices around the world.
Bill Gore built the company around a set of principles and beliefs that guide Gore associates in the decisions they make, the work they do, and their behavior toward others. They are the basis for a culture that binds together a worldwide organization1.
Zappos
Zappos.com, founded in 1999 by Nick Swinmurn, is an American online shoe and clothing retailer based in Las Vegas, Nevada. The remarkable startup was acquired by Amazon in 2009.
Zappos culture is an astonishing one that reflects on its customer service. The spirit of service is deeply rooted within the core of its employees. Thanks to their CEO Tony Hsieh, who makes sure employees are there because they want to, not because they have to2.
Shopify
Five team members working consistently in a coffee shop in Canada. Who would have thought this would grow into a base of 2000 employees? Yes, this is Shopify. Known as a popular online store builder, but distinguished for its killer culture built on strong values that have made this tremendous success possible.
Studying the above three startups, what they have in common is innovation and a healthy culture. For example, Zappos is known for its strong interviewing process. Half of the interview is based on skills and experience while the other half is making sure the candidate fits the culture.
In addition, the CEO offers candidates 2000$ after the first two weeks, in case the candidate wants to leave, to filter out those who stay only for economic reasons. As for Shopify, they have an internal praise tool called Unicorn that ensures good deeds wouldn’t go unnoticed3.
This tool even allows employees to offer cash bonuses to other employees whom they believe deserved. As for Gore, they work according to its company slogan – “We don’t manage people, we expect people to manage themselves”. Employees are referred to as ‘Apprentices’ and the company does not have managers, it has leaders.
All the above refers to culture as one of the main reasons for business success and continuity. But what do we mean by Organizational Culture? Let’s explore.
What is an Organizational Culture?
Have you ever entered an entity, only to find everything in place? The surrounding is very clean and neat. Employees are well and properly dressed. They talk to each other in a low voice. They smile at each other. Everyone is busy getting their tasks done. They greet customers politely and make sure to serve them well. The main job is to satisfy the customer. When you ask a question, you get an answer. No one replies “this is not my job”. What we have described above is a strong culture of service.
On the other hand, you enter a restaurant. The furniture is a bit stained. There is some dust covering the plastic flowers lying sadly on each table. You see some waiters standing together laughing and talking in a loud voice. One of them pushes the other jokingly. Then they start calling each other inappropriate names in a loud voice followed by echoing laughter. You and some other customers are trying to call any of them to help you with your order, yet, their sound together with the sound of the played music is loud enough to block your voice. What you have just witnessed is “Organizational Culture”.
To define the term "Organizational Culture" formally:
“Organizational culture is the collection of beliefs, values, and methods of interaction that create the environment of an organization. The organizational culture encompasses the foundational values of a company or business. It also reflects an organization’s expectations and philosophy and the experiences of the employees and leaders within it, often determining the group’s future direction4.”
Looking quite close at the definition above, it is obvious how important it is to create a healthy organizational culture. It is also clear that a strong culture is strong by the people, for the people. After all, the saying “Culture eats strategy for breakfast” by Peter Drucker has proven to be true in many instances.
1Gore, Accessed 30 May 2020, https://www.gore.com/about
2Zappos, 2019, How Zappos Grew Out of Just Shoes, Accessed 20 June 2021, https://www.zappos.com/about/stories/zappos-20th-birthday
3Allyson Eman, 2017, 5 Examples of Innovative Startups with Great Company Culture, Accessed 20 June 2021, https://www.ventureatlanta.org/startup-culture/
4 Indeed Editorial Team, 2021, What is Organizational Culture, Accessed 20 June 2021, https://www.indeed.com/career-advice/career-development/organizational-culture
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