What is company culture?

Company culture encompasses an organisation’s shared values, beliefs, attitudes, and practices. It shapes how team members interact, make decisions, and view their work.

In simple terms, culture is the way we do things. It involves how we define, prioritise, and solve problems. It’s about determining and prioritising what is important to us as an organisation. It also encompasses how we define success and failure, and how we handle them. Additionally, it determines what behavior gets rewarded and what gets punished.

How do the people around respond to the mistake? Does your team view this as a failure? Do you penalise the person who made the mistake? Or do you view the mistake as a learning opportunity for the team? Do you give the person the opportunity to rectify the mistake and allow the team to learn vicariously from this mistake?

A strong culture aligns with the company’s goals, motivates employees, and fosters a sense of belonging and purpose.

Let’s look into how you build a strong company culture as a leader.

1. Define your why—your how will follow

Your values and vision form the core of your “why.” They are the driving force behind your goals and decisions, shaping the direction and purpose of your business. When you have a clear understanding of your why, it provides a solid foundation for making decisions and taking actions that are aligned with your mission.

Your goals and values are crucial because they guide your everyday choices and behaviour. They serve as a compass, helping you stay on track and ensuring that your actions are consistent with your overall vision. These decisions and actions play a significant role in defining your company culture. When everyone in your organisation understands and embraces your why, it fosters a sense of unity and purpose, leading to a cohesive and motivated team.

By clearly defining your why, you create a strong sense of identity and direction for your business. This, in turn, influences how you operate and interact with both employees and customers. A well-defined why helps build a culture of authenticity, accountability, and commitment, as everyone works together towards common goals that are meaningful and impactful.

One company with a clear vision and mission is Patagonia. Their original mission statement was, “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” They have changed their mission into a simplified but impactful statement: We’re in the business to save our home planet. While there are nuanced differences, Patagonia remains one of the companies that embody the triple bottom line of profits, people, and the planet. Yvon Chouinard, the founder of Patagonia, was clear about what he wanted to achieve from the beginning—and that is why he formed the Patagonia culture.

Defining your why determines how you do things: how you define problems and opportunities, what you prioritise, what products and services you produce and sell, and how you do things—from research and development to operations to marketing and even communications. It’s the unspoken blueprint for your team—and it’s your why that defines it.

2. Lead by example

People will follow your actions more than your words. You can’t hold yourself to different rules and standards than the rest of your team. First, it’s unfair. Second, this kind of inequity will shape your culture—and it’s the fastest way to create a toxic environment.

3. Hire for cultural fit

It doesn’t matter if someone is the most qualified for the job—they can ruin a good thing if they can’t get along with the team. You can train for skills, but not for attitude.

Typically, people who share the same values and goals, or similar “whys,” will also share similar “hows.” But don’t mistake hiring like-minded people for hiring “yes” people—the ones who just agree with everything you say. You want to surround yourself with people who share your values and goals, but who are also motivated enough to ask questions, raise issues, learn from mistakes, and speak up when needed. The kind of culture you want is one where healthy discussions are encouraged and dissenting opinions are welcome, as these conversations lay the foundation for growth and development within your team.

Building a strong company culture from scratch requires dedication, unified thinking, and consistent execution. As the leader, it’s your responsibility to build and nurture the team culture. Patagonia exemplifies this approach—it all starts with commitment from the top and unwavering execution from day one.