Why Company Culture Matters for Business Success 

Let’s start with the basics. What is company culture, and why does it matter so much? Simply put, company culture is the collective mindset, values, and behaviours that shape how things get done in your business. The invisible force determines whether your team collaborates or competes, whether innovation thrives or fizzles, and whether your business adapts or stagnates. 

In my book, “$20K to 2 Million in 2 Years,” I talk about how culture is the lifeblood of any successful business. It’s not just about having a ping-pong table in the break room or a mission statement on the wall. It’s about creating an environment where your team feels empowered, engaged, and aligned with your vision. 

But here’s the catch: as your business grows and your goals evolve, your culture needs to keep up. What worked when you were a team of five might not work when you’re a team of fifty—or five hundred. If your culture is out of sync with your strategy, you’ll find it increasingly difficult to achieve your goals. 

Signs Your Company Culture Needs a Makeover 

So how do you know if your company culture needs a refresh? Here are some telltale signs: 

• Low morale: Your team seems disengaged, unmotivated, or even resentful. 

• High turnover: You’re constantly losing good people, and it’s costing you time and money. 

• Lack of innovation: New ideas are met with resistance, and your business feels stuck in a rut. 

• Internal conflict: Teams or individuals are working against each other instead of together. 

• Stagnant growth: Despite your best efforts, your business isn’t moving forward. 

If any of these sound familiar, it’s time for a culture check. Remember, the culture that got you here may not be the culture that gets you to the next level. 

Learning from the Best: Microsoft’s Culture Transformation 

Let’s take a page from one of the world’s most successful companies: Microsoft. When Satya Nadella took over as CEO, Microsoft was struggling. Internal competition, silos, and a resistance to change bogged down the company. Nadella recognised that the old culture was holding Microsoft back, especially as the technology landscape was evolving at breakneck speed. 

He made culture change his top priority. By shifting the focus to collaboration, innovation, and continuous learning, Nadella transformed Microsoft into a powerhouse of growth and creativity. The company regained its market relevance, became a leader in cloud computing and artificial intelligence, and saw its financial performance soar. 

Now, you might be thinking, “That’s great for Microsoft, but I run a small or medium-sized business. How does this apply to me?” Here’s the thing: SMEs are actually at an advantage. With smaller, more agile teams, you can implement cultural changes faster and see results sooner. If a giant like Microsoft can turn its culture around, so can you. 

How to Change Your Company Culture: A Step-by-Step Guide 

Changing company culture isn’t about sending out a memo or hosting a one-off workshop. It’s about making intentional, consistent changes to the way your business operates every day. Here’s a practical, actionable approach: 

1. Assess Your Current Culture

Start by taking an honest look at where you are right now. What’s working? What isn’t? Talk to your team, gather feedback, and look for patterns. Are people avoiding tough conversations? Is there a lack of accountability? Are new ideas welcomed or dismissed? 

This is where your problem-solving skills come into play. Don’t just look at the symptoms—dig deep to find the root causes. Sometimes, the issue isn’t obvious until you ask the right questions. 

2. Define the Culture You Want

Next, get clear on what kind of culture will help you achieve your business goals. Do you need more innovation? Better teamwork? Greater focus on customer service? Paint a vivid picture of what success looks like—not just in terms of numbers, but in how your team operates day-to-day. 

Link this vision back to your business strategy. In my experience, the most successful transformations happen when culture and strategy are aligned. If your goal is rapid growth, you need a culture that embraces change, rewards initiative, and supports calculated risk-taking. 

3. Identify Barriers and Root Causes

Why has your culture developed this way? Look beyond surface-level issues. Are your incentive structures encouraging the right behaviours? Are your policies and processes supporting or undermining your desired culture? Sometimes, it’s about the people—who are the influencers, and are they on board with the change? 

This is classic problem-solving, one of my core areas of expertise. Don’t just treat the symptoms—address the underlying issues that are holding your culture back. 

4. Communicate and Get Buy-In

Culture change won’t work unless your team is on board. Be transparent about why change is needed and how it will benefit everyone. Share your vision and invite input. People support what they help create. 

In my coaching work, I’ve seen firsthand how powerful it is when leaders listen as much as they talk. Create space for honest conversations and be willing to address tough issues head-on. If you want your team to embrace new values, you need to model them yourself. 

5. Take Action—And Be Consistent

Now comes the hard part: making real changes. This might mean updating policies, shifting team roles, or even letting go of people who are holding the business back. It’s not easy, but it’s necessary. 

Focus on small wins. Celebrate progress. Reinforce the behaviours you want to see. And remember, consistency is key. Culture isn’t changed by a single event—it’s shaped by daily actions and decisions. 

6. Be Patient and Persistent

Transformation takes time. There will be setbacks, and not everything will go according to plan. But if you stay committed, you’ll start to see shifts—in attitudes, in performance, and in results. 

As I often tell my clients, “Growth is a marathon, not a sprint.” The same goes for culture. Be patient, stay the course, and keep your eyes on the long-term prize. 

Practical Tips for Small and Medium Businesses 

• Lead by example: Your team will take their cues from you. Model the behaviours and attitudes you want to see. 

• Empower your team: Give people the autonomy to make decisions and take ownership of their work. 

• Recognise and reward positive behaviours: Celebrate wins, both big and small, to reinforce your desired culture. 

• Invest in development: Provide opportunities for learning and growth, both for individuals and teams. 

• Stay agile: Be willing to adapt as your business evolves. Culture is a living thing—it needs regular attention and care. 

Linking Culture Change to Business Growth 

In “$20K to 2 Million in 2 Years,” I share stories of business owners who transformed their companies by focusing on culture. One client, for example, was struggling with high turnover and stagnant sales. By realigning their culture around collaboration, accountability, and customer focus, they not only reduced turnover but also doubled their revenue in less than two years. 

The lesson? When you get your culture right, everything else becomes easier. Your team is more engaged, your customers are happier, and your business is better positioned for sustainable growth. 

Final Thoughts: Your Next Steps 

Revamping your company culture is one of the most powerful things you can do for your business. It’s not about chasing trends or copying what others are doing—it’s about building a workplace that supports your unique goals and values. 

If you’re ready to make a change, start today. Assess where you are, define where you want to go, and take action. With the right mindset and a clear strategy, you can shape the culture—and the business—you really need. 

Remember, culture is the foundation of everything you do. Invest in it, nurture it, and watch your business thrive.