Catalyst Management Consultants

>cmc<

>CATALYST MANAGEMENT CONSULTANTS<

>Corporate Culture<

What is it?

Like people, businesses have character. This is not surprising since businesses are run by people and the people at the top set the agenda. The word ‘character’ becomes the word ‘culture’ when talking about business. Character/culture is a way of being and behaving that becomes consistent and therefore predictable. In that sense a business is like a human being.

Character/culture is difficult to define on paper but you can observe how it operates and you can ‘feel’ it.

Where does it come from?

Culture stems originally from the nature and character of the company founder. Over time the behaviour of the company will reflect that character unless there are changes at the top of the business hierarchy. It there are new owners they may wish to change the character of the business, particularly if it is underperforming. Some company cultures have become so entrenched that they cannot be altered without effectively destroying the company – the John Lewis Partnership for example.

Why is it important?

Corporate culture concerns a company’s personal identity, something equally important to individuals. The identity may well draw on moral and business philosophy. It follows that business employees will broadly need to accept the culture since it will have a personal impact on their lives.

Changing the corporate culture is therefore not to be undertaken lightly. Perhaps, not surprisingly, this aspect of business thinking, if badly handled, can result in business failure. It is one of the biggest reasons for business failure in fact, and that is why it is an important subject to understand.

What corporate culture is not

Culture is not another word for ‘branding’ or the business ‘mission’ statement. Both of these arise from the corporate culture but are not ‘personal or identity’ statements or aspects of behaviour.

How can corporate culture be threatened?

These are the main reasons a business can face a culture clash:

1.	The company is underperforming under its current culture and new management/owners arrive.
2.	The company is performing well and the shareholders sell out at a profit.
3.	There is a significant change in the size of the business through expansion or redundancy.
4.	A new CEO is appointed.
5.	The company becomes unpopular with its customer or supplier base.
6.	Someone within the company does something significant which is inconsistent with its established character.
7.	The company diversifies its product range into radically new or different markets.

These changes listed above can apply to any size of business.

CMC can advise on the impact of these changes on the established dynamics, relationships and psychology of your business, and therefore its emerging bottom line profit or loss after these changes. CMC can also, from our consultants’ varied personal experience, indicate the likely outcomes from dramatic changes in culture before the event occurs, and thereby help you avoid potential pitfalls others have fallen into.