Estimated reading time: 4 minutes

It’s Only Common Sense: Creating a Great Company Culture

Let me ask you a few questions:

1. Does everyone in your company know what your company’s vision is? If not everyone, then how many?
2. Does everyone in your company know what your company’s strategy is? If not everyone, then how many?
3. Does everyone in your company know who your ideal customer is? If not everyone, then how many?
4. Does everyone in your company have a sense of ownership in your company? If not everyone, then how many?
5. Does everyone in your company know what the company does? If not everyone, then how many?
6. Does everyone in the company have a good working knowledge of your industry and your company’s place in that industry? If not everyone, then how many?
7. Is everyone in your company proud of what you produce? If not everyone, then how many?
8. Do your associates feel that they are growing? Do they feel valued? Are they proud to be part of the company? That they are contributing? Are they challenged? Do they love where they work? Are they proud to be a part of your industry?

If you answered these questions honestly and you can say yes to all of them, then I guarantee that you have a great company. If you answered these questions honestly and said no to most of them, then you have your work cut out for you, but at least you know what you have to do.

If you answered these questions by saying you don’t know, then I can honestly tell you that your company is in trouble. I can also tell you that your company is having the following issues:

• A huge turnover rate
• You can’t find people to join your company
• If you do hire someone they leave in a short time
• Your employees are not engaged. They are just showing up, doing the job without passion, and punching out
• You are not producing the best product you should be producing
• No one’s having fun

The quality of your company culture is directly reflected in your bottom line and market dominance, says Daren Martin in his book, Architecting a Company of Owners.

In this short but very effective book (more of a PowerPoint, really), Martin demonstrates how to engage your associates, so they feel like they are owners of the company.

He claims that by changing your company’s culture you can increase your company’s net profitability by up to 72%—or even 756%. Well, maybe that’s hyperbole, but I can tell you this: You will make your company better by creating a culture where everyone is passionate about what the company is doing and their role in the company.

He continues, “If company culture showed up on a profit and loss statement it would be the first data point looked at by all executives.”

From personal observation, I know that most companies do not spend much time on improving that culture. In fact, most companies in our industry do not spend any time on developing their company’s culture and engaging their employees so they feel like they are passionate owners of the company.

It shows now more than ever when we are having such a hard time finding the right people, or any people for that matter, to fill our positions.

Low employee engagement is the biggest indicator that a company’s culture is broken, Martin says.

Here are some things you can do right now to reset and improve your company’s culture:

1. Define your company’s strategy and mission.
2. Talk to your employees. Get out on the floor; let them see you and let them ask you questions. Engage with them.
3. Have one-on-one talks with them. If the company is a large one, then train your managers and supervisors to have good and effective one-on-ones with them.
4. Have effective performance reviews with them. Make sure that during these reviews you show them their future path. Find out what they would like to do in your company and together set a path to that goal. Show them their future.
5. Make sure that every employee knows about your industry, product, and the company’s position in that industry.
6. Show them your customers’ end products. Demonstrate to them how your product is important and how their work on your product is important.
7. Make them feel like they matter.
8. Make them feel like they are an important part of your company, the industry, and the world. They should feel like significant contributors.
9. Hold monthly all-hands meetings to let them know how the company is doing and how they as “owners” are doing.

In this culture, it’s all about caring, compassion, and communication. If you can create a great company culture, you will create a great company.

It’s only common sense.

Dan Beaulieu is president of D.B. Management Group.