{"id":339,"date":"2018-01-16T22:09:42","date_gmt":"2018-01-16T22:09:42","guid":{"rendered":"https:\/\/danielvlopes238992071.wordpress.com\/2018\/01\/16\/the-3-key-elements-of-company-culture-and-why-they-really-matter\/"},"modified":"2025-02-28T10:57:43","modified_gmt":"2025-02-28T18:57:43","slug":"the-3-key-elements-of-company-culture-and-why-they-really-matter","status":"publish","type":"post","link":"https:\/\/canopy.is\/blog\/2018\/01\/16\/the-3-key-elements-of-company-culture-and-why-they-really-matter\/","title":{"rendered":"The 3 Key Elements of Company Culture \u2014 And Why They Really Matter"},"content":{"rendered":"\n

Let\u2019s look past the buzzword and define the key elements of organizational culture.<\/h2>\n\n\n\n
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\u201cCulture<\/a>\u201d has become the ultimate buzzword these days.<\/p>\n\n\n\n

Everyone wants to \u201cimprove their company culture.\u201d I see the word frequently littered across the headlines of countless articles, book titles, and conference talk topics. Leaders also seem to talk about it all the time: CEOs say<\/a> company culture is their first or second-most-important priority as a leader.<\/p>\n\n\n\n

Yet for as much we seem to talk about it, do we really know what culture is?<\/p>\n\n\n\n

If we want to influence our company culture, we have to start with a keen understanding of what culture actually is.<\/p>\n\n\n\n

What is company culture, really?<\/h3>\n\n\n\n
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\u201cCulture is the way we do things around here.\u201d<\/p>\n<\/blockquote>\n\n\n\n

You may have heard this before. It\u2019s how prominent organizational consultants Terry Deal and Allan Kennedy defined<\/a> culture in the 1980s. Culture is the thing you can\u2019t necessarily touch and feel\u200a\u2014\u200ait\u2019s the invisible binds and unspoken rules that enforce \u201chow people do things around here.\u201d<\/p>\n\n\n\n

However, this definition can be insufficient at times. \u201cThe way we do things\u201d feels awfully vague and amorphous, especially when it comes to thinking about how to intentionally create a company culture we\u2019re proud of.<\/p>\n\n\n\n

As a result, our attempts to influence culture<\/a> get muddled. We conflate culture with surface-level relics, confusing culture with \u201cThings To Make People Feel Good.\u201d Think ping pong tables and happy hours and free lunches. Sure, those are part of \u201cthe way we do things\u201d\u200a\u2014\u200abut it doesn\u2019t explain why<\/em> you\u2019re doing those things. Culture includes that why.<\/p>\n\n\n\n

Let\u2019s take a look at culture a few levels deeper.<\/p>\n\n\n\n

Three levels of culture<\/h3>\n\n\n\n

Edgar Schein, another prominent organizational scholar, defined<\/a> culture as having three levels:<\/p>\n\n\n\n

Artifacts<\/h4>\n\n\n\n

This is the level of culture closest to the surface. Artifacts are things you can see, touch, smell. Ping pong tables, happy hours, and free lunches. It\u2019s also the office layout, the logo rebranding you just did, and your company holiday party. This is typically what we think of when it comes to company culture.<\/p>\n\n\n\n

Espoused values and beliefs<\/h4>\n\n\n\n

One level deeper is your espoused values and beliefs. These are the things you think you believe and say you believe. It\u2019s the mission statement you wrote together as a company, the code of conduct that\u2019s in your employee handbook, or the six core company values your CEO talks about during your all-staff meeting.<\/p>\n\n\n\n

Basic underlying assumptions<\/h4>\n\n\n\n

This is the final, core layer of culture. Basic underlying assumptions are the things you actually<\/em> believe. For example, at Canopy<\/a>, we have a basic underlying assumption that we must be honest, regardless of the personal cost. So when we made a big mistake<\/a> a few years ago, we proactively shared it with our customers, even it meant risking losing them. Our basic underlying assumption steered our decision-making and how \u201cwe do things around here\u201d\u200a\u2014\u200aultimately, driving our culture.<\/p>\n\n\n\n

Our basic underlying assumptions are the foundation of culture. If we can influence our basic underlying assumptions, we can influence culture.<\/p>\n\n\n\n

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Why this matters<\/h3>\n\n\n\n

More often than not, there\u2019s a misalignment between this final layer\u200a\u2014\u200athe basic underlying assumptions\u200a\u2014\u200aand the espoused values and beliefs and artifacts. The things you actually believe, versus the things you say you believe and the things you do to show it.<\/p>\n\n\n\n

Perhaps the most glaring case has been Uber. A company that no doubt had artifacts as \u201cproof\u201d that they valued their employees\u200a\u2014\u200alavish office parties and state-of-the-art offices. A company that had 14 cultural values<\/a> it touted, including that employees should \u201cbe themselves.\u201d And yet the basic underlying assumption persisted: Win at all costs, by any means necessary. We saw this in countless of examples<\/a> of questionable ethics and sexual harassment issues ignored. At its core, Uber\u2019s culture was rooted in this aggressive, toxic mindset\u200a\u2014\u200aand that manifested in how they treated their people, regardless of what superficial artifacts or espoused values they trumpeted.<\/p>\n\n\n\n

If you\u2019re looking to truly shift your company\u2019s culture, you have to zoom in on this last and final layer: Your basic underlying assumptions. What you truly believe\u200a\u2014\u200anot always what you say or outwardly show\u200a\u2014\u200ais what drives your company\u2019s culture.<\/strong> This should be your focus as a manager, CEO or employee.<\/p>\n\n\n\n

Changing your company culture<\/a> is not about just changing the artifacts. Getting beer taps installed in the kitchens doesn\u2019t make your culture more friendly. Nor does building an onsite gym mean your culture all of sudden cares about employees\u2019 health and well-being.<\/p>\n\n\n\n

Changing your company culture also isn\u2019t about just changing the espoused values and beliefs. Saying at all-company meetings, \u201cWe believe in honesty and transparency\u201d or writing \u201cWe believe in diversity and inclusion\u201d on your career website doesn\u2019t automatically make those things true. Changing your company culture is about tapping into the core beliefs of each individual, understanding what their basic underlying assumptions are, and creating an environment where those can be listened to, brought together, and reacted to.<\/p>\n\n\n\n

How do you exactly do this? Read How to Influence Company Culture as a Leader<\/a>.<\/p>\n\n\n\n

Until then, I hope we can take a minute to look past company culture as not a clich\u00e9\u200a\u2014\u200abut an opportunity to precise, perceptive lens to examine figure out how to make our organizations better.<\/p>\n\n\n\n

If we can understand company culture, we can improve it.<\/p>\n\n\n\n

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