Peter Drucker famously said, “Culture eats strategy for breakfast.” This powerful statement gives entrepreneurs and leaders a lot to think about when considering the influence of company culture on the success of their growth strategies. While strategy sets the course for an organization, it is culture that determines how effectively that strategy is implemented. And that is perhaps more important than the strategy itself. Verne Harnish, in his book “Scaling Up,” emphasizes the importance of having the right people and a strong culture as the foundation for growth.
But what does this mean in practice? And how do you create and maintain a company culture that not only enables growth but also accelerates it?
Culture: The Invisible Engine Behind Success
Every organization has a culture. It’s the sum of norms, values, habits, and behaviors that shape how people interact with each other and their work. A strong, positive company culture fosters engagement, creativity, and collaboration. It motivates employees to go beyond their job descriptions and creates an environment where change is embraced rather than feared.
When an organization grows, culture can be the powerful engine that accelerates strategy. This is one of the core principles in scaling-up companies. But if the culture doesn’t align with growth goals, it can become a barrier. Employees may resist new processes, internal conflicts can escalate, and overall productivity may decline.
How to Create and Maintain a Culture that Accelerates Growth
1. Core Values and Core Behaviors
Many companies have defined core values, but no core behaviors. Each core value should be supported by 3 to 4 specific behaviors. These behaviors should be clear enough that employees can be held accountable for them. Describing behavior makes a core value explicit, providing structure and direction, and forming the basis for giving feedback.
For example:
• Respect (core value example):
• You treat others with dignity.
• You are open to other opinions and viewpoints.
• You follow agreed-upon core values.
Learn more about implementing these principles in your organization in my book “Mijn Beste Team Ooit! In 7 Stappen naar Golden Leadership.”
2. Coaching: The Key to Cultural Change
Cultural change doesn’t happen overnight, especially in a fast-growing organization. This is where coaching comes into play. Coaching provides leaders and employees with the guidance and tools to actively shape culture and use it as an accelerator for the company’s growth strategy.
3. Leadership Coaching
Leaders are role models and play a crucial role in shaping culture. Their behavior and decisions directly impact how culture is experienced and passed down to employees. Leadership coaching helps develop emotional intelligence, communication skills, and the ability to give and receive feedback. This contributes to an open, supportive culture where employees feel heard and valued, increasing engagement and productivity.
4. Accountability for Behavior to Maintain Culture
Providing negative feedback with the goal of changing behavior is a skill often underestimated. If we know what we stand for as a company, it’s important to hold each other accountable for behavior, which preserves and strengthens culture.
Example:
A successful account manager generated a lot of revenue but acted arrogantly and often irritated colleagues. His behavior was tolerated out of fear of losing his sales, but over time, the management realized his conduct was damaging company culture. He was confronted, and eventually, when his behavior didn’t improve, he was let go.
5. Transparency and Clear Communication
Transparency strengthens trust and engagement. Open communication about strategy, success, and challenges ensures employees feel heard and motivated. It also ensures adjustments are made promptly when needed.
6. Letting Go of Mismatches
How long should you stick with an employee who can’t or won’t adapt to the company culture? Be clear about expectations, explain why they are important, and give a timeline for the required changes. If the changes don’t occur, it may be time to part ways.
Culture and Growth: Hand in Hand to Success
As an entrepreneur or leader, it’s crucial to focus on your organization’s culture, especially when aiming for growth. Coaching can help drive cultural change that not only enables growth but accelerates it. The result? A company ready to take on any challenge and continue growing.
Learn more about scaling up your business in “In 10 Steps to Grasp Growth and Uncertainty.” (Dutch only) Achieve better business results and avoid costly pitfalls.
