There are many challenges that face executives and business leaders. Guiding and directing the way employees handle the business, transactions, relations with one another, and overall functions of the company are key parts of being in leadership. Establishing a well-defined organizational culture is vital to being successful in business development.
What is Organizational Culture?
All businesses and organizations create a way in which the employees relate to one another and the outside world. There is a set of expectations that are passed around by the environment of the business. This can include the way employees handle transactions, conflicts, customer service issues, policies, and many other aspects of the business. These expectations encompass everything that is written in the form of a policy, to the unwritten rules that have been established over the course of time.
Who is in Charge of Shaping the Organizational Culture of a Business?
It is best that these cultures are established by the leaders and executives of the business. If there is a lack of leadership, the culture will be defined and taught by the employees of the company. This is a dangerous way to allow your business to be run. It is best that as a CEO, you stay on top of the organizational culture of your company and intentionally shape it into what you want it to be.
How do Executives Shape Organizational Culture?
In order for the executives and leaders of a company to shape the organizational culture, there are few things they will need to put into place:
- Establish a vision: A vision statement is a powerful sentence that defines exactly what the purpose of a company is. A vision of the future helps all employees have a good understanding of what the business does and where it is going.
- Create a mission statement: Once the vision of the company has been created, a leader must create a mission for the business. These are specific goals the company will reach in an estimated amount of time. The mission for a company should be fairly specific and revised yearly. When the mission for the company has been established, it should be made known to all employees. This gives everyone specific goals to shoot for.
- Strategic business planning: When there is a well-defined vision and mission statement, strategic business planning for the business can take place. Every decision can be made with confidence when the question is asked, “Will this decision help the business meet its goals, or hinder it from meeting its goals?”
- Making of policies: Policies, procedures, and values are very important to shaping organizational culture. This defines how employees are to respond to one another and to their customers. When well defined, the decision making process becomes easier.
These are just a few of the things that you, as an executive, should be doing to shape the organizational culture of your business. Understanding the importance of this part of your company can be the difference between succeeding and failing at what you are trying to accomplish.
~ Written for us by our associate Gary Sorrell, Sorrell Associates, LLC. Copyright protected. All rights reserved.