In this video, dissect the corporate cultures of four organizations that are proactively taking a fresh approach in this area. Get details about the types of cultures that are prevalent in many of today’s organizations: learning culture, innovative culture, diverse culture, global culture, and digital culture.
- As companies are making drastic shifts in response to global influences and digital advances, their new goals require updated cultures, with different values, and different expectations. There are a variety of progressive culture models that are prevalent in many organizations today. Here are four of them. The first is a learning culture. Companies that follow this model focus on increasing knowledge, competence, and performance. The emphasis on learning blankets everything they do, their values, procedures, and all of their employee practices.
Education for them is a continuous process. The people who work in these companies are often passionate about learning and they are rewarded for those pursuits. One example of a learning culture would be Yelp, the online crowdsource review company. At Yelp, personal growth and development is a daily top priority. They invest heavily in helping their managers learn, but also teaching them to become better coaches and mentors for their direct reports. But education isn't just for managers at Yelp.
Everyone in the company is invited to hear guest speakers on Fridays at their learning lunches. Plus, they have a unique program called Yelp Beans that matches two people from diverse parts of the company to meet for a cup of coffee and help each other learn something they didn't know about a different department or function. The quest to learn more keeps the whole company moving forward with significant momentum. The second is a culture of innovation. These companies make innovation part of every business strategy, which means that innovation and innovative thinking infiltrates the entire organization.
A strong role model in this category would be Netflix, the streaming media and video on-demand company has become known as one of the most innovative companies in the world. Netflix has mastered the art of harvesting new ideas from employees by giving them just the right blend of freedom to come up with fresh concepts and the responsibility needed to bring them to life. That's exactly what catapulted the company to take a leadership role in digitally delivering entertainment and developing original content that scores top ratings and Emmy's.
Innovation is their competitive advantage. The third model is a customer-centric culture. These companies organize everything they do around customer satisfaction. They laser focus products, services, and employee efforts on creating happy, loyal customers. Employees have the authority to resolve problems for customers in an instant and they have the tools to make that happen. It's not just a function of the customer service department. It's ingrained in everyone, from the CEO, to the accountants, to the mail room.
One of the best examples of this culture is Amazon. It's even in their vision statement. They strive to become the Earth's most customer-centric company. Amazon CEO Jeff Bezos is often described as being customer obsessed. And he famously left an empty chair around a table at board meetings telling executives it was reserved for the most important person in the room, the customer. The fourth progressive model is the purpose-driven culture and it's one of the most recent.
This concept was described by a social scientist name Dr. Gustavo. He studied companies that maximized their impact on people and the planet, rather than simply trying to earn a profit. He referred to these force for good companies as implementing a culture of social capitalism. In contrast with profit-driven companies that worked to serve shareholders, organizations that follow social capitalism are driven by serving all of their stakeholders, employees, customers, and the local community, as well as financial stakeholders.
Companies with a culture of social capitalism adhere to a different type of belief. If they have high standards and work for the greater good, they can strengthen their brand in an almost bulletproof way. Customers become fiercely loyal and the revenue follows for longterm success. A company that's living this model is TOMS and they make an unusual pledge, for every product the consumer purchases, the organization donates one to a person in need.
This one for one idea started with shoes. You buy a pair, they give a pair away. Now, they're force for good has become so powerful, they have expanded the model from shoes to include things like eyeglasses, clean water, and even healthcare. And yes, that karmic capital is paying off to the tune of hundreds of millions of dollars. I've included in the resource document links to learn more about the companies I've mentioned here.
By understanding the fundamentals of progressive models, you can more easily identify culture trends in the current business environment and make smarter, more deliberate culture choices to benefit your organization.
- Defining organizational culture
- Reviewing traditional vs. progressive culture models
- Creating a cultural framework
- Changing company culture
- Leading organizational culture