The Challenge of Keeping the Business Culture During Growth

One of the most critical yet often underestimated aspects of any business growth is what we like to call “cultural preservation”. Maintaining the company’s culture and values, even as new staff members join and the structure of the business changes, is paramount.

In this article, you’ll learn:

What business culture is
Why preserving it is essential
Strategies for maintaining the business culture alive
Examples of success and failure in this area

A few weeks ago, we wrote an article about when to hire a new member as a response to your business growth plan. In that article, we briefly mentioned the integration and productivity aspects, where the cultural fit factor plays an important role. In this article, we deep dive into it.

But before we get there, it’s critical to touch base on a broader question: ‘What is business culture and why does it matter?”

The Essence of Business Culture

Business culture is a term that describes the combination of attitudes, behaviours, mission, values, and expectations that drive the leaders and the team members of an organisation daily. It means that culture goes far beyond written institutional norms, influencing the actions taken by the company’s team. In other words, it’s only culture if it’s practised. Otherwise, it’s just a list of good intentions present in institutional materials. In order to be part of the business culture, they must guide the posture and beliefs of individuals.

How is a Business Culture Born?

Business culture is born from the principles, beliefs and values of the founders and main leaders of the company. As definers of the management model by holding maximum power in the company, founders and leaders impose their personal convictions, their own way of making things happen. So, the principle of leading by example is taken to the maximum level when it comes to business culture.

The importance of business culture is unquestionable. Culture is the heartbeat of any organisation. It shapes how employees interact, make decisions, and achieve goals. A strong, well-defined culture can drive performance, foster loyalty, and enhance overall job satisfaction.

Why Cultural Preservation Matters

Consistency in Performance: A consistent culture ensures that all employees are aligned with the company’s goals and methods, leading to better performance and productivity.
Employee Engagement: A strong culture fosters a sense of belonging and purpose, which boosts employee morale and reduces turnover.
Brand Identity: The culture of a company is often reflected in its brand. Preserving culture helps maintain a consistent brand identity, which is crucial for customer trust and loyalty.

However, when the business expands, sustaining its culture becomes increasingly complex.

The Challenge of Cultural Preservation

Growth inevitably brings change. New hires, new structures, and expanded operations can naturally dilute (or even disrupt) an existing culture. Which is understandable. After all, each new team member brings their own set of experiences, values, and expectations.

While this diversity can be an asset, it also poses a challenge: integrating these varied perspectives into the established cultural framework without losing the essence of what makes a business unique.

Research, commissioned by Leading Teams, pointed out that nearly half of Australian employees don’t know their company’s values, indicating a disconnect between what is stated and the actual business culture. Something that worsens when the business grows.

Strategies for Preserving Culture Amid Growth

Strong Leadership Commitment: That’s not a surprise. As we mentioned before, leading by example is key. Leadership must exemplify the company’s values. Leaders who consistently demonstrate cultural priorities set the tone for the entire organisation. Regular communication about the importance of culture and visible actions that reflect core values are crucial.

Rigorous Hiring Practices: Among the aspects discussed in the “When to Hire” article, hiring for cultural fit is essential. This doesn’t mean hiring clones but rather individuals whose values align with your business’s. Incorporating cultural fit assessments into the hiring process can help ensure new employees contribute positively to the existing culture.

Ongoing Cultural Reinforcement: Culture is not a set-and-forget asset; it requires ongoing effort. Regular training sessions, workshops, and team-building activities can help reinforce cultural values. Recognising and rewarding behaviours that exemplify your business’s culture also reinforces its importance. When it comes to preserving the culture, nothing is too much.

Inclusive Integration: New employees bring fresh perspectives that can enrich the culture if integrated thoughtfully. Encourage open dialogue about cultural values and provide platforms for newcomers to share their ideas. This inclusive approach can help evolve the culture positively while maintaining its core essence.

Successful case studies of cultural preservation during growth:

Zappos: The online shoe retailer maintained its focus on customer service and employee happiness even as it grew rapidly. CEO Tony Hsieh implemented unique practices like offering new hires $2,000 to quit if they weren’t a cultural fit, helping preserve their core values.
Vinomofo: This Australian wine company is recognised for living and breathing its purpose and mission. They base their culture around wanting everyone to experience good wine, being proud of their impact on the world, and having fun.
Patagonia: The outdoor clothing company has consistently prioritised environmental sustainability and activism throughout its growth. They’ve maintained these values by carefully selecting like-minded employees and partners, even as they’ve expanded globally.
Canva: This Australian global design platform is noted for creating a strong sense of community and balancing accountability with fun. They encourage every employee to share their knowledge and expertise.

Examples of failures in cultural preservation:

Uber: As the ride-sharing company grew rapidly, it faced numerous scandals related to a toxic work culture. The aggressive “growth at all costs” mentality led to ethical compromises and eventually forced leadership changes.
Wells Fargo: The bank’s intense focus on cross-selling and aggressive sales targets led to widespread fraud, with employees opening unauthorised accounts. This represented a significant departure from the company’s stated values of ethics and customer service.
Amazon: While successful in many ways, Amazon has faced criticism for losing touch with its initial customer-centric culture as it grew. Reports of intense working conditions in warehouses and high-pressure environments for corporate employees suggest a shift away from its original values.

Preserving the culture of a business is not a one-off task but an ongoing duty. And it’s particularly challenging when a business is growing. BridgePoint Group has extensive experience in helping companies navigate the complexities of growth, while maintaining their core values alive. If you have ambitious goals and understand the importance of culture for your business performance, we would be more than happy to help make your plans successful.