Instructions for building corporate culture from A – Z

Corporate culture is the foundation for the sustainable development of any business. Besides, this is also a factor that many candidates focus on when looking for a new working environment. So why is corporate culture important, what are the typical types of culture and what culture do companies in Vietnam have?

1. Assess the current culture of the business

If your company is showing the following signs of a toxic culture, immediately put them on the “blacklist” to find ways to improve:

  • Continuous recruitment: This is both a sign of poor human resource management and a sign of employees who are satisfied and not attached to the business but quit their jobs.
  • Bad habits of both managers and employees: Poor discipline, often coming to work late, completing deadlines late, arriving at the office on time but starting work late,…
  • Poor internal communication: You step into the office and realize that everyone in your workplace is quiet, no laughing, no communication, absolutely no interaction.
  • Managers and employees are two separate groups: Rarely interact with each other, if they do, it is only one-way communication.
  • Many meetings are long, disciplinary measures are introduced but not followed by everyone, and there is little recognition or reward for employee achievements.
  • People don’t speak up to discuss ideas during the meeting, but gossip and make noise right after the meeting ends
  • The fear can be clearly felt: The room door slams, everyone stays silent when the boss passes, avoids to share the elevator with the boss,…

7 Rules for Creating a Company Culture People Love

2. Determine expectations about corporate culture

When starting to build a corporate culture, think carefully about what you want to create, starting with your company’s own strengths and characteristics. When culture is developed based on existing things, leaders will know what to do to make things best.

You can refer to the 8 typical cultural types in the world presented above. And here is the percentage of businesses choosing them as the top 2 trends they are interested in:

  • Caring-culture: 63%
  • Purpose (purpose-culture): 9%
  • Learning (learning-culture): 7%
  • Enjoyment (enjoyment-culture): 2%
  • Results (results-culture): 89%
  • Authoritarian culture: 4%
  • Order-culture: 15%

Note that you do not necessarily have to apply one and only one type of culture, but can smoothly combine them with each other. For example, service businesses are not simply focusing on building a Caring-culture image that is familiar and close to customers, but are combining Results-culture by setting sales goals and implementing them.

The 4 Types of Organizational Culture & Their Benefits

>>>Read more: Which industries allow/disallow foreign investors to do business in Vietnam?

3. Identify the factors that make up corporate culture

Nowadays, many companies use fancy and flashy words to talk about their culture. Enron – a powerful American energy corporation used the following four words to talk about its core values: Integrity, Communication, Respect, Excellence. As a result, this corporation collapsed in 2002 due to concealment, falsification of books and fraud, creating one of the most shocking economic cases in American history.

Therefore, core values should only be things that are truly valuable and valued in the business. Some questions to help you determine the core values of your business:

  • What are the company’s mission, vision and long-term goals?
  • How do you want your company to be known?
  • Are the company’s business goals consistent with the personal values of its employees?
  • What is the company’s cultural goal?
  • Identify the factors that make up corporate culture

4. Plan to build and communicate corporate culture

Once you have identified the ideal culture for your business and also have an understanding of the culture that exists in your business, it is time to think about how to bridge the gap between them. These gaps should be evaluated according to four criteria: working style, decision making, communication, and treatment.

The business action plan will include specific goals, activities, timelines, milestones and responsibilities. In addition, you also need to determine what to prioritize, what resources are needed, when it will be completed, and who is responsible for each task.

5. Start implementing corporate culture

#first. Establish a unit in charge of corporate culture: Enterprise leadership needs to directly direct and monitor the process of implementing culture in their enterprise. The board in charge may include management representatives of each department and a number of assistants.

#2. Announce and communicate corporate culture to all employees: After issuing general rules and regulations, organize conversations between leaders and employees about the company’s cultural values.

#3. Cultural stability and development: Cultural development also needs to be maintained long-term, if not this is a process that requires persistent cultivation. Recruit the right people, not the best people but the most suitable people.

6. Measure the effectiveness of implementing corporate culture

Similar to sales or ROI, after a period of implementation, corporate culture should be carefully evaluated by managers. Regularly measuring this factor will help you promptly resolve outstanding problems and build a healthier corporate culture for your company.

Some effective measurement methods:

  • Employee Turnover Rate (ETR) – Rate of employees quitting their job
  • Employee Net Promoter Scores (eNPS) – An index measuring employee engagement
  • Employee Satisfaction Index (ESI) – Employee satisfaction index

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