Companies with culture are living, breathing things. Just like people and animals, companies evolve over time, and they outgrow their current culture.
Corporate climates shift, new talent is born, and competitors are always on the lookout for the weakest prey. It's survival of the fittest, and if companies don't evolve, they will become obsolete.
Just ask Ross Perot.
In the 1970s, one of the hottest and fastest-growing companies in history was Electronic Data Systems. Its founder, Perot, took tremendous pride in meeting and knowing the name of every employee. However, he noted with deep dismay to a reporter one day: “I got on the elevator the other day, and there was an employee there I had never seen before.”
Interestingly, EDS would go on to be bought out not once, but twice, by General Motors (and later spun back off) and then to Hewlett Packard. After some years, the company was dissolved, and the employees integrated into HP.
The early success of EDS was attributed to its copying of IBM’s strict culture and extensive hiring of former military officers. Over time, that culture morphed repeatedly to meet the demands of its new markets, while maintaining a strong reputation and profitability.
What Doesn’t Kill You...
Many people are familiar with the oft-referenced (and misquoted) statement by German philosopher, Friedrich Nietzsche: “That which does not kill us, makes us stronger.” The reality of today’s marketplace is that change is a constant, and insanely rapid change is the norm for successful companies. That very reality of change is one reason culture is so important, and the culture of high-growth companies both nurtures and embraces change.
If we revisit our earlier discussion of Pike’s view on culture, we are reminded of the three key elements of culture that he claims are fundamental requirements:
- Autonomy
- Mastery
- Purpose
Looking at these in the light of the issue of growth and change, we can see another dimension of the importance of all three elements. In fact, if growth and change are included in the purpose, the first two aspects of a healthy culture will facilitate and empower the effort to change and evolve during growth.
Waking Up to Change
On the other hand, many companies are founded and reach their first growth plateaus without a lot of attention to the role of culture. Even companies that have achieved an enviable level of success may find that very success causing a number of issues that could affect their survival.
If you are running or managing such a company, step back and evaluate the cause of the internal pain points in your organization. While it is easy to blame old and inefficient computer systems, outdated marketing strategies, bad employees or even the physical aspects of an office, an ineffective culture will often be the root of most problems.
Before addressing real and pressing operational issues in a high-growth organization, take time to evaluate the health of your culture. Empowered employees who are working autonomously and gaining mastery over their functions will act proactively to prevent many of those seemingly intractable problems before they stunt your company's growth.
Proper culture is not a “feel-good thing” or an optional priority. Rather, it is at the core of long-term, sustainable success. If your culture is outdated, take action or go extinct.
If you want a successful company culture, you have to build it from the ground up. Learn how by downloading the first part of our free Company Culture eBook series, Creating A Culture That Matters: Laying The Foundation For A Great Business Culture!
