Corporate Culture

Dr. MRIDULA MISHRA

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 Learning Objective
Corporate Culture
Development of Corporate Culture
Benefits of a Strong Corporate Culture
Creating Strong Corporate Culture
Fundamental Components of Corporate
Culture
Corporate Values
Corporate Culture and Financial Success

Dr. MRIDULA MISHRA

 Corporate Culture
Corporate culture refers to the underlying
beliefs, values, and assumptions held by
individuals within an organization, and the
practices and behaviours that demonstrate
and support them

Culture reflects what the company

considers important and what it considers
unimportant

Dr. MRIDULA MISHRA

 Development of Corporate Culture
Conscious vs Unconscious
Conscious specific steps are taken to define
the intended culture
It is codified and used as the foundation for
the development of business strategies
The employees can better understand what is
expected of them in relation to the company
and how they can contribute to the big picture
The public has clear information of what is
expected from the company

Dr. MRIDULA MISHRA

 Development of Corporate
Culture
Unconscious the culture develops
organically based on the actions,
communications and personal values of the
senior leader or business founder
Inconsistencies between actions and
communications in the perceptions of the
employees and public can lead to a culture
different than the one assumed by the leader
Inconsistencies can lead to reduced
engagement levels

Dr. MRIDULA MISHRA

 What does it mean to have a
strong corporate culture?
Clear understanding of what the companys
mission, vision and values are

Pervasive and consistent messages

supporting the mission, vision and values
communications, business strategies and
actions and behaviours

Alignment of employees personal values

with corporate values

Dr. MRIDULA MISHRA

 Benefits of a strong corporate
culture

Employee engagement
Customer loyalty
Financial growth
Hiring
Trust and transparency
Other

Dr. MRIDULA MISHRA

 Strong Corporate Culture
Example

A strong corporate culture derives its

power from specific practices that
employees understand as symbolizing
and representing the culture
A strong corporate culture sets out an

intended experience for your customer

(Southwest Airlines
http://www.youtube.com/watch?v=tnOxvbGOTbM)
Strong cultures have powerful effects on
how a companys people work together
Dr. MRIDULA MISHRA
Creating a Strong Corporate
Culture

Dr. MRIDULA MISHRA

 Become Conscious about your
Culture

Take time to think about:

Who are we / what do we stand for?
What is our purpose?
How do we want to behave?
What is the objective of the company?
What experience do we want our
customers to have?
How do we want to differentiate our self
from our competition?

Dr. MRIDULA MISHRA

Codifying your Corporate Culture

Fundamental components:

Mission

Vision

Values

Dr. MRIDULA MISHRA

 Mission Statement
A corporate mission statement should
state the current objectives of the
company what are we currently working
toward achieving?

Mission statement should be brief, clear

and succinct

Mission statement should provide

opportunities for growth

Dr. MRIDULA MISHRA

 Vision Statement

The vision statement refers to where the

organization sees itself in the future

A vision statement should provide

inspiration, excitement and invoke a
compelling change or impact

Dr. MRIDULA MISHRA

 Corporate Values

Corporate values define the behaviours

and philosophies that guide the
organizations internal conduct as well as
its relationships with outsiders

Values must be well defined to enable

employees to understand expectations

Dr. MRIDULA MISHRA

 Corporate Values
Example
Maple Leaf Foods (excerpt of values)
Do what is right - By acting with integrity,
behaving responsibly, and treating people with
respect
Dare to be transparent, passionate and humble -
By having the self-confidence and courage to be
completely candid and direct; willing to
communicate openly in a trusting manner; acting
with passion, conviction and personal humility,
especially when delivering winning results
(Source: www.mapleleaf.com/en/corporate/careers/our-high-
performance-culture)

Dr. MRIDULA
 Other Formats

Four Seasons Hotels and Resorts

Corporate Mission
Who We Are
What We Believe
How We Succeed
How We Behave
(www.fourseasons.com/about_us/service_culture )

Corporate Values
Building Communities
Advancing Cancer Research
Supporting Sustainability
(www.fourseasons.com/about_us/corporate_values )

Dr. MRIDULA MISHRA

Creating a Strong Corporate
Culture

Dr. MRIDULA MISHRA

 Create Actions and
Strategies
Bring words to life
Connect intended culture to specific

business goals and objectives

Walk the talk
Create the standards
Build a powerful and consistent message

to employees and the public

Dr. MRIDULA MISHRA

 Communicate
Meet with staff and explain the meaning
behind the words. Have it connect to
their hearts and take on a personal
meaning to them
Communicate strategies
Use various communication mediums
Create conversations with staff and

acknowledge situations where employees

demonstrate the culture

Dr. MRIDULA MISHRA

 Customer Experience
Employees have a high level of
understanding of the culture to translate it
into the desired customer experience

Employees model specific practices that

symbolize and represent the culture

Customer experience will differentiate your

business from the competition

Dr. MRIDULA MISHRA

 Monitor and Evaluate

Informal feedback from employees and

customers
Questionnaires
Turnover
Internal communications
Length of day
Dress of staff
Stories

Dr. MRIDULA MISHRA

 Unsaid Rules

What are unsaid rules?

Inconsistencies between the intended culture

and managements actions that create new
beliefs by the staff or public

Managements perception vs staff / public

perception

Dr. MRIDULA MISHRA

 How to Get Back on
Track?
Communicate

Change strategies

Develop rituals

Celebrate cultural successes

Dr. MRIDULA MISHRA

What is your corporate culture?

Dr. MRIDULA MISHRA

 Corporate Culture and Financial
Success

Companies with strong corporate cultures

have been found to experience 3.5 times
the three-year average revenue growth
as compared to the S&P TSX 60
Composite Index (56% versus 16%)

The three year average asset growth was

nearly five times as high (63% versus
13%)

Dr. MRIDULA
 Corporate Culture and Financial
Success

WestJets culture has helped the

company have an average three-year
revenue growth of 105% prior to the
recession

Employee engagement as a result of the

culture has saved the company money
on expenditures such as advertising,
recruiting and customer reward programs

Dr. MRIDULA
 Corporate Culture and Financial
Success

Manulife Financial
Three year average revenue growth of 107%
Three year average asset growth 140%

Boston Pizza
Three year average revenue growth of 69.25%
in an industry that typically sees growth in the
4% range

(Source: Waterstone Human Capital Canadas Most Admired Corporate

Cultures)

Dr. MRIDULA
 Corporate Culture and Future
Trends
Savvy Gen Y and Z kids
Customers will control the business

relationship
Social networks will fuel the participatory

economy
Sustainability becomes a competitive

requirement
Work shifts from full-time to free agent

employment
Working in the cloud

Dr. MRIDULA MISHRA