Retail Service Systems, founded by Scott Andrew, recently conducted a study that found toxic company culture to be the third-leading cause of employees quitting their jobs. On the flip side, a strong company culture can lead to innovation, growth, improved retention, and happier, more productive employees. However, creating a positive company culture requires consistent effort over time. Entrepreneurs can take several steps to help build the right company culture, starting with sharing their vision with their employees. By selling their vision to their team, entrepreneurs can ensure that their employees are passionate and aligned with the company’s goals.
Steve Jobs once said that simplicity can be harder to achieve than complexity, and this applies to establishing a company culture statement. Many entrepreneurs make the mistake of overcomplicating their messaging around company culture. As a company grows, it becomes even more critical to keep the company culture message simple and straightforward. The core culture and philosophy of a company can easily get lost as the company expands, hires more people, and faces new challenges. Keeping the culture message simple will help ensure that it stands out no matter what challenges arise.
Toxic individuals who are self-absorbed can quickly become a drain on a company’s positive momentum and culture. Getting rid of these “navel-gazers” is essential for a company’s culture to thrive. A study by Harvard Business School found that replacing a toxic worker who performed in the top 1% with an average worker could result in a two-to-one return on investment. Leaders must also take on the role of cheerleader, helping employees feel good about their work and giving them the confidence to succeed. By giving employees room to make mistakes and learn from them, leaders can empower their team to do their best work.
Effective business leaders use war stories to build camaraderie among their team members and foster a sense of pride in their company. These stories can become a crucial part of a company’s culture and help bring the team together. Even if leaders don’t participate in extreme activities like riding a bull, they can create their own war stories that unite their team and strengthen the company culture. Culture is vital to a company’s success, as it is the DNA of the organization. A strong culture can propel a company to great heights, while a weak culture can hinder its success, regardless of the quality of its product or service. Leaders should never underestimate the importance of fostering a strong and intentional company culture.
