By John Jeffreys
Let me define culture as "the way things are done around here". If your organisation has existed for some period of time, there will be "war stories" that will be repeated about how it copes with various issues. These war stories, which are probably repeated from time to time by both owners and employees alike, describe the attributes of the organisation through the way that it has dealt with a particular situation.
Sometimes these are stories of success and describe, say, how the business improved its sales or its relationships with a customer. In other situations it may be a story about how a customer was lost and how the organisation dealt with the loss according to its culture. Or, perhaps, the enterprise did not deal with the matter in a way that was in accordance with "the way things are done around here". From these accounts of past events, new employees learn how the organisation goes about its business. Further, it reinforces the accepted attitudes and behaviour of the organisation to those who already work in it.
I have been a partner in four accounting firms. Two of those were very large accounting firms (including one of the big four). Three of those firms had strong cultures and one did not. It was no surprise to me that three of those firms had good profitability and one did not. The three firms with a strong idea of who they were knew what they were about and had a clear focus on how they conducted themselves in front of clients and in the community in general. They knew the formula of how to make money and they made sure their people conducted themselves according to the organisation's standards.
However, having a distinctive culture is not always a guarantee of profitability and success. An organisation can have an attitude of not caring or laziness. It can have an overly social feel about it that does not promote productivity. These attitudes can be quite strong and can be very difficult to change.
Typically, in order to change these types of organisations into more profitable enterprises, an outside person is brought in who has no "investment" in the existing way things are done. This person then tries to implement change. Sometimes that is done (or attempted) very quickly and dramatically. Other times, it must be a long slow process. The person undertaking that change must determine which is the best approach.
Here are some questions that you can ask yourself about the culture of your organisation.
What are the more frequently repeated war stories of your business?
Is it focused on customer service?
Is the customer truly king or queen in your organisation or is that just something that people parrot as something that they should say?
Do people in your organisation enjoy coming to work?
Do they feel motivated and inspired to do a good job no matter what it is?
Do people in your organisation freely make suggestions for improvement?
Do your people recommend your business as a place to be employed to other people?
Is "the way things are done around here" obvious to suppliers and customers?
If you were to ask your customers or suppliers the key thing that they noticed about your people, what would they say?
Do your staff know the rules, both written and unwritten, about the way that they should conduct themselves in certain circumstances?
Is there a sexist or racist attitude, even to a small extent in your organisation?
What kind of poor or bad behaviour do you tolerate?
Your answer to these questions will reveal a lot about "the way things are done around here".
Wishing you easier business.
John Jeffreys
John Jeffreys wants you, the business owner or manager, to have an easier life. John Jeffreys helps you to achieve this by drawing on his 30 years business experience as a Chartered Accountant and partner in major accounting firms. For instant access to videos, audios and software products, visit http://www.businessease.com.au
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