The article carries definitions of corporate cultures, both from the practitioners' and from the academic point of view. The impact of corporate culture on the financial performance of the company is highlighted on the basis of a survey done in the US. Some common myths regarding corporate culture are then discussed with emphasis on the differences between implementation of strategy and corporate culture. The common reasons for the breakdown of cultures in today's corporate world have also been discussed. The article concludes with the processes that corporates need to execute in order to build rich corporate cultures, both for the long and short-term.
Before defining corporate culture, a proper understanding of culture is appropriate. One of the best definitions of culture was provided by Geert Hofstede (1980) in his book Culture's Consequences. According to him, "Culture is the collective programming of the mind that distinguishes the members of one group or category from another." Corporate Culture thus has to do with the programming of the mind of the people who work for a particular organization. In the words of Collen Barrett, CEO Southwest Airlines, "Corporate Culture is one of the most precious things a company has, so you must work harder on it than anything else." Howard Schultz CEO, Starbucks defines it as, " if people relate to the company they work for, if they form an emotional tie to it and buy into its dreams, they will pour their heart into making it better," while Thomas Ricks of US Marines says, "Culture is the glue that holds the organization together." In a survey conducted by Fortune Magazine, they found out that the one thing that sets top ranking companies apart is their rich culture. |
