Company culture – how do we build and maintain it in line with values?

Why is it important?

Company culture is not just a reflection of leadership, but the result of interactions between all stakeholders. A strong and positive company culture brings greater employee motivation and engagement, lower staff turnover, higher productivity and greater innovation.

The Deloitte Global Human Capital Trends survey (2024) shows that 94% of leaders believe that company culture is key to success, but only 19% believe they have the right culture in place.

Companies with a clear and positive culture achieve:

• up to 30% higher productivity,
• 40% less staff turnover,
• 20% higher customer satisfaction rate.

Building company culture

A strong and healthy company culture doesn't develop on its own - it requires planned construction and constant attention. It is important that the culture is built gradually, with clear steps that both management and employees can implement on a daily basis. The key building blocks of a company culture are:

• Vision, values ​​and goals – they must be clearly defined, authentic and reflected in the daily operations of the company (Practical tip: Develop values ​​together with employees and present them in visible places in the company, on the intranet or in introductory presentations for new employees. Example: In a small IT company, they have defined “openness to ideas” as a value, which means that every employee can suggest improvements that are regularly discussed by management).
• Leading by example – leadership must be the first ambassador and role model of the culture (Practical tip: To encourage collaboration, leaders should actively participate in projects themselves and regularly praise teamwork and create opportunities for joint solution-finding).
• Communication and transparency – establish an open flow of information that builds trust and reduces misunderstandings (Practical tip: Introduce weekly short meetings or monthly internal newsletters where you share key decisions, challenges and achievements).
• Recognition and reward – behaviors that reflect the company's values ​​should be recognized and encouraged (Example: In a manufacturing company, employees who suggest process improvements are rewarded with additional benefits or symbolic gifts).
• Development and learning – investing in people strengthens commitment and long-term success (Practical tip: Organize regular internal workshops, online courses or “knowledge exchanges” between employees, departments).

The process of changing company culture

When we believe that we do not have the right company culture in place, we embark on a process of change. The process of changing culture in companies takes place in three steps, namely:

• Step 1: Culture Analysis – We identify the characteristics of the company’s existing culture – how employees think, feel and believe. We use document analysis, observation, interviews, focus groups and questionnaires. The results provide the basis for a discussion about why the culture is the way it is and what would make sense to change.
• Step 2: Culture Assessment – ​​We examine the company’s vision, values, and goals and identify any similarities or differences between them and the existing company culture. They may be aligned or not entirely consistent with each other.
• Step 3: Culture Design – Based on the findings from the previous phases, we design the desired company culture. If the existing and desired culture match, we focus on maintaining it; otherwise, we plan the change process.

Challenges in maintaining company culture

Companies often face a fragmented culture, especially during rapid growth or mergers. If management does not ensure that values ​​are aligned, conflicts of interest and loss of trust can occur. Regular monitoring and adjustment of the culture is therefore essential (e.g. through short internal surveys, one-on-one conversations, or external support to help objectively look at the state of the culture).

In younger companies, especially start-ups, culture is often formed organically – from the values ​​of the founders. In more mature companies, however, it needs to be consciously built and nurtured so that it is not lost as they expand or change their structure.

Company culture is not something that can be simply copied from others. It is unique, stemming from the vision, values, goals, and people in the organization. The right culture connects employees, motivates, and guides them. As Steven Bartlett said: “ If the company culture is strong, new people will follow it. If the company culture is weak, the culture will follow the new people .”

For companies looking to strengthen their culture, it is crucial to regularly monitor it, maintain its alignment with the company's values, and change it as needed.

If you are facing entrepreneurial challenges that you do not yet have the answer to, we at the Koroška Network Business Incubator (MPIK), which operates within the framework of RRA Koroška, are happy to provide you with help and support. Among other things, we offer a free mentoring and consulting program . More info at www.rra-koroska.si/mpik .