Company culture can often be regarded as something only relevant to large businesses, however at the heart of any robust company lies a clear set of core values that guide decision-making and behaviour. Identifying these values and aligning them with your business goals serves as the initial step towards creating a positive culture within your SME.
Get it right and it has the potential to help you attract top-tier talent, elevate employee morale, increase productivity, and enhance customer satisfaction.
Understanding the Importance of company culture
Company culture represents the shared set of values, beliefs, and behaviours that define the identity of an organisation. It serves as the invisible force that guides how employees interact with each other, with customers, and with their work.
Identifying core values
To define your core values, it is essential to gather input from employees, leadership, and stakeholders. Questions such as "What do we stand for?" and "What principles are non-negotiable in our organisation?" are instrumental in this process. Once you have a list of potential values, it is imperative to narrow it down to a select few that truly resonate with your company's identity.
Aligning values with business goals
Your core values should not exist in isolation; they should be integrated into every facet of your business, from making hiring decisions to handling customer interactions. When your values are in alignment with your business objectives, they become a powerful tool for shaping your company culture.
Lead by example
Leadership plays a pivotal role in setting the tone for company culture. The behaviours and attitudes of leaders are closely observed by employees, and they often emulate what they witness. Consequently, it is crucial for leadership to lead by example.
Your leadership team should engage in open communication, actively listen to employee feedback, and exhibit empathy and respect.
Employee engagement strategies
Employee engagement extends beyond job satisfaction; it involves creating an environment where employees feel emotionally connected to their work and the organisation. The implementation of regular feedback sessions, recognition of achievements, and involvement of employees in decision-making processes can significantly enhance engagement.
One notable example of a UK-based company empowering employees with decision-making is the John Lewis Partnership who operate a unique employee ownership model where all employees are referred to as "Partners" and have a say in the company's decisions. This approach is deeply ingrained in their culture and governance structure. Features of their model include:
1. Employee Councils: The company has established a network of Employee Councils that represent different branches and departments. These councils meet regularly to discuss various aspects of the business, including business strategy, product selection, and customer service.
2. Partnership Forums: John Lewis Partnership holds Partnership Forums, where Partners can discuss and debate key business issues. These forums provide a platform for Partners to share their insights and ideas directly with the senior leadership team.
3. Profit Sharing: Partners at John Lewis receive a share of the company's annual profits. This not only provides a financial incentive but also reinforces the sense of ownership and responsibility among employees. The profit-sharing scheme is a result of collective decisions made by Partners.
4. Governance Structure: The company's governance structure includes a Chairman and a Board of Directors, but it also features a unique body called the Partnership Council, which comprises elected Partners who represent their colleagues. This Council plays a crucial role in decision-making at the highest levels of the company.
5. Feedback Mechanisms: John Lewis Partnership actively seeks feedback from its Partners through surveys, suggestion schemes, and regular meetings. This feedback is considered in the decision-making process and often leads to policy changes and improvements.
By giving their employees a genuine voice in the company's direction, John Lewis Partnership has created a culture of collaboration, innovation, and shared responsibility. This approach has not only contributed to their success but also set a positive example of how UK companies can empower their employees through active involvement in decision-making processes.
Other strategies
We’ve looked at leadership and empowering employees through inclusive decision making, but there’s plenty more ways to ensure your SME has a strong company culture. Other strategies include:
1. The Role of recognition
Recognition serves as a powerful motivator, reinforcing desired behaviours and inspiring employees to excel. Whether it's through verbal praise, awards, or incentives, acknowledging employees' efforts can significantly boost morale and cultivate a culture of excellence within your SME.
2. Creative ways to appreciate employees
Consider celebrating work anniversaries with personalised messages or small gifts. Create employee appreciation days or events where staff can unwind and bond outside of the workplace. Explore unique ways to show gratitude, such as handwritten thank-you notes or public recognition during team meetings. Tailoring your appreciation efforts to your company's culture and the preferences of your employees can make the gestures even more meaningful.
3. Learning and development
Investing in employee growth and development is not only a testament to your commitment to their success but also a vital component of building a strong company culture. Provide training programmes, mentorship opportunities, or access to educational resources that empower employees to continually improve their skills.
4. Work-Life balance
Recognising the importance of work-life balance can significantly contribute to a positive company culture. Acknowledging that employees have lives outside of work and respecting their need for balance is crucial. Striking this equilibrium ensures that employees remain motivated, productive, and committed to your SME without experiencing burnout.
5. Inclusivity and diversity
A culture that embraces inclusivity and diversity is one that fosters innovation and creativity. Create an inclusive environment where every employee feels valued, regardless of their background or identity. Establish diversity and inclusion programmes that promote equality and representation within your company.
In short…
Building a positive company culture within your SME is an ongoing journey that requires dedication, effort, and a strategic approach. The impact of a strong culture on growth and success cannot be overstated.
