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11 September 2024

Corporate culture is shaped by action

Corporate culture is a nuanced and living entity that emerges from people's actions and their mutual interaction. In the Startup-ministeriö podcast ”Menestyvän startupin yrityskulttuuri: sen luominen ja sudenkuoppien välttäminen” (A successful startup's culture: its creation and avoiding pitfalls), Jyri Engeström, Timo Ahopelto and Kristo Ovaska reflected on the importance of culture and its development potential for a company's success. They raised the question of whether culture can truly be created consciously, or if it is rather a naturally occurring phenomenon formed through the actions of the people working in the company. 

The discussion highlighted that just as a startup must find its place in the market – product-market fit – every employee must also fit the company culture. This means that culture has a direct impact on recruitment and who is hired. Fundamentally, culture is what employees do when no one is watching – it is the visible manifestation of the organisation's values, attitudes and operating methods. 

Kristo Ovaska compared the work community to a sports team that needs constant coaching and development to remain competitive. With this analogy, he emphasised that culture development is a continuous process of always striving for better.  

I believe that culture can be developed, but this does not happen through strategic plans and fancy slides alone. Culture development takes place in everyday activities, where every day one strives for better performance than the previous day. 

The right tools play a key role in this development. In knowledge work, these tools can be various systems and software that form a unified way of working, increase efficiency and improve collaboration. In management, tools can manifest as communication methods, coaching techniques or clear management structures that support the team in achieving its goals. Organisations can also create operational practices that promote a respectful and appreciative atmosphere. These tools and structures are an essential part of the foundation upon which a strong culture is built. 

However, steering culture in a certain direction is not always easy. Changes in operations and culture can meet resistance, especially when they require personal changes. Leaders may be tempted to try and please everyone, but long-term and sustainable culture development requires clear goals and a consistent direction. 

Toyota's lean philosophy offers valuable perspectives on the pursuit of excellence. Lean thinking emphasises the implementation of standardised operating methods, where a common standard serves as the basis for development. This standard is not necessarily the perfect solution, but it represents the best possible way of operating at that moment. Over time, the operating method is evaluated and further developed to continuously achieve better results. 

A culture based on clear values, shared standards and continuous improvement provides a solid foundation for the pursuit of excellence. However, it is important to understand that this does not happen by itself. Choosing and implementing the right tools and methods is crucial in developing culture. When an organisation adopts effective tools and clear processes that support everyday activities, it can create a culture that not only inspires employees but also promotes the company's success. Action happens through tools, and the importance of the right tools is emphasised in developing culture and achieving excellence. 

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