Strong Corporate Culture — The Most Powerful Engine For Successful Start-Ups

The Fundamentals

Culture itself is a complex term and has many aspects in different contexts. We will use it as the alloy of different norms, beliefs, and behavioural habits within a group of people respectively organisations. Culture has its fundamentals, which from an organisational point of view are even more specific.

  • Be brave and learn fast — we familiarise ourselves with the newest trends and we use cutting edge technologies, as well as data-driven decision making, which gives us the opportunity to automate and modernise an entire business segment.
  • Transparency is not a cliché — we have transparent internal and external communication channels. In our case, this increases the flow of information within the company and respectively our productivity. It as well contributes to the better understanding of the needs of our customers. The transparency is practically helping us not only to increase the trust of our customers but also to improve their experience and make our services more holistic.

Culture as organisational glue

The whole is more than its parts and the strong corporate culture is the manifestation of the unity in organisations. As Eric Flamholtz and Yvonne Randle (Eric G. Flamholtz and Yvonne Randle, 2011) claim, organisational culture functions as “organisational glue”. This prevents start-ups from building isolated working clusters, where people avoid interaction with others. The corporate culture makes them more flexible and agile as an entirety. Young companies with a strong culture are more prepared for market changes and are able to react more adequately on customer’s feedback. They have better coordination and strait communication channels, which are essential most notably in critical situations. This, as a result, has a constructive effect on the development of the product or service itself.

Performance improvement

Performance is one of the main quality metrics of a company’s development and the corporate culture has a direct impact on many of its aspects. One of the main reasons for entrepreneurs to establish a strong culture is its direct influence on personal productivity. This grows enormously in the appropriate environment and increases the efficiency not only of individual employees but also on the company as a whole. These processes are quantitatively measurable by different KPIs, nevertheless, they are significant for the ability to perform and respectively for the quality of the product or service that the company offers. Even further, these advantages, of course, have an impact on the financial performance as well, which is just as important for a company as the fuel for an engine. Already in the ’90s Kotter and Heskett (1992) showed in their long-term study a significant correlation between corporate culture and financial growth.

Higher company’s attractiveness

Only from excellent people respectively, excellent teams could an excellent performance be expected. Building a strong positive culture is vital for start-ups in terms of attracting good employees and exceptional talents. Being attractive also saves additional costs for long and obstinately recruiting processes. It increases employee loyalty and contributes to the long term sustainability of the company’s spirit. The people are the factor that constitutes a company the most and are respectively one of the most valuable assets. Happy employees are also the evangelists of a company and they are those, who promote the product most of all.

To sum it up

This short summary does not claim any exhaustiveness of all aspects related to the corporate culture, as it is our take on what we at eCollect consider to be the core of a successful organisation. It shows the enormous potential of the organisational behaviour and its orientation and highlights the importance of catering to it as your company grows and becomes more complex. We observe that our vision and strong values guarantee us many advantages in terms of performance and help us face the challenges during dynamic growth phases. We initiate prosperously new processes, use modern technologies and maintain transparent communication channels. This is our story. What is yours?

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