Civilisation eats strategy for breakfast.

That's a mutual phrase originated by direction expert Peter Drucker, and made famous by Marker Fields, President at Ford.

The truth is, even the best plans and strategies tin be batty by toxic or unhealthy company cultures.

In club to assist yous build an inspiring and thriving civilisation, the Fellow team has compiled some important definitions, civilization types, and expert opinions in this mail service.

Keep scrolling to learn more virtually the 8 unlike types of cultures and place which one is yours:

  1. Caring workspaces
  2. Purpose-driven cultures
  3. Learning cultures
  4. Playful work environments
  5. Results-oriented cultures
  6. Authority cultures
  7. Safe and risk-conscious cultures
  8. Structured and methodical work environments

What is company civilisation?

Company civilisation tin be defined as the fix of cadre values and attitudes that characterize a company or organization. It determines the behaviours that are encouraged (or discouraged) within a group of people, and who is hired, fired, and promoted inside the organization.

As Netflix's CEO, Reed Hastings argues in the company'southward civilisation memo:

"The actual visitor values, as opposed to the squeamish-sounding values, are shown by who gets rewarded, promoted, or let go."

I common misconception that leaders have about company civilisation is that civilization is tied to company benefits such every bit free lunches and ping pong tables. As Reed Hastings explains, these things might help retain some employees, just exercise not determine your company culture.

"Great workplace is not espresso, lush benefits, sushi lunches, chiliad parties, or nice offices. We do some of these things, but only if they are efficient at attracting and retaining stunning colleagues," says Hastings. "We particularly value nine behaviours and skills in our colleagues, pregnant we rent and promote people who demonstrate these 9."

If you're curious about Netflix'southward nine cultural behaviours, they are judgement, communication, bear upon, curiosity, innovation, backbone, passion, honesty, and selflessness.

What makes Netflix'due south company culture so unique is that they rely on these core values to make important decisions, take career development conversations, and share constructive feedback.

Now that you take a clear understanding of what visitor culture means (and how companies such as Netflix put it into practise), let's talk nearly 8 unlike types of company civilization that exist across different industries.

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What are the viii types of visitor civilization?

In a study published in the Harvard Business organisation Review, civilization experts Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng found that eight characteristics emerge when you expect at civilization from 2 unlike dimensions:

  • How people interact (independence to interdependence)
  • People'southward response to change (flexibility to stability)

"By applying this fundamental insight about the dimensions of people interactions and response to change, nosotros have identified eight styles that use to both organizational cultures and individual leaders," says the report. "Each style has advantages and disadvantages, and no style is inherently better than another. An organizational culture can be divers past the absolute and relative strengths of each of the eight and by the degree of employee agreement nearly which styles characterize the system."

Hither are the eight types of company culture and real-life examples of each workplace surroundings shared by Groysberg, Lee, Toll, and Cheng in their written report:

i Caring workplaces

Caring cultures are collaborative and welcoming. They focus on mutual trust and relationship-building between teammates. These cultures encourage cross-functional collaboration where people with unlike skill sets back up one another.

  • 63% of companies in the sample ranked this mode of culture beginning or second to describe their organizational civilisation.
  • Instance: Walt Disney Company

According to the HBR study, Disney exemplifies the values and characteristics of a caring culture. Every bit Bob Iger, Chairman and old CEO of the Walt Disney Company wrote in his volume, The Ride of a Lifetime:

"Potent leadership embodies the fair and decent handling of people…Nothing is worse to an organization than a civilization of fear."

– Robert Iger

2 Purpose-driven cultures

Work environments that emphasize purpose put a lot of emphasis on altruism and contributing to the greater good. In these types of cultures, employees are united by their passion for the company mission, which is usually focused on sustainability and supporting global communities.

  • 9% of companies have a highly purpose-oriented culture, co-ordinate to the HBR study.
  • Example: Whole Foods

According to John Mackey, founder and CEO at Whole Foods, businesses have a much broader positive impact when they are based on a purpose that goes beyond generating profits and creating value for shareholders.

"Most of the greatest companies in the world as well have great purposes….Having a deeper, more transcendent purpose is highly energizing for all of the various interdependent stakeholders."

– John Mackey

iii Learning cultures

Cultures that value learning also put a high focus on creativity, innovation, and exploration. These companies encourage experimentation and brainstorming, besides every bit a deep sense of marvel in employees.

  • 7% of organizations rank this inventive mode highly, according to the study.
  • Instance: Tesla

According to the HBR study, Tesla is an example of a learning (or innovative) culture, as Elon Musk (CEO and co-founder) invites employees to be as imaginative as possible:

"Failure is an pick here. If things are not failing, you are not innovating."

– Elon Musk

4 Playful work environments

Companies with a playful culture are characterized by high morale, employee engagement, and fun. In playful work environments, leaders emphasize spontaneity and a sense of humour.

  • Only two% of companies rank enjoyment at the meridian of their cultural profile.
  • Example: Zappos

Co-ordinate to Tony Hsieh, CEO at Zappos, i of the visitor's core values is "create fun and a little weirdness."

"We've actually passed on a lot of smart, talented people that we know can make an firsthand bear on on our top or bottom line only if they're not good for our civilisation then nosotros won't hire them for that reason alone."

– Tony Hsieh

5 Results-oriented cultures

A event driven civilisation focuses on goals and results. These companies are outcome-oriented and put a high accent on winning. Leaders in these cultures tend to focus on employee performance and drive.

  • This style is shared past 89% of companies, according to HBR.
  • Example: GSK

According to the HBR study, GlaxoSmithKline (GSK) exemplifies the blazon of workplace civilization that is driven by outcomes and results.

"I've tried to keep us focused on a very clear strategy of modernizing ourselves."

—Sir Andrew Witty

Authority cultures tend to be characterized by strong and confident leadership. In this blazon of work environment, leaders emphasize confidence, boldness, and decisiveness.

  • 4% of companies rank this manner highly.
  • Example: Huawei

Ren Zhengfei, the CEO of Huawei, highlights this by stating that the company has a "wolf spirit":

"In the battle with lions, wolves have terrifying abilities. With a strong desire to win and no fright of losing, they stick to the goal firmly, making the lions exhausted in every possible fashion."

– Ren Zhengfei

7 Safe and risk-conscious cultures

Risk-conscious companies rank safety at the top of their culture profile. These companies place a loftier value on planning, preparedness, and caution. Leaders in these organizations are characterized by being realistic and planning ahead.

  • eight% of companies in the sample used this way to draw their culture.
  • Case: Lloyd'southward of London

According to the HBR study, Lloyd'southward of London is a visitor where employees are rewarded for being take a chance-conscious and careful. Inga Beale, a British businesswoman and the former CEO of Lloyd's of London confirmed this argument by saying:

"To protect themselves, businesses should spend time understanding what specific threats they may exist exposed to and speak to experts who can help."

— Inga Beale

8 Structured and methodical work environments

Finally, some types of cultures prioritize order and structure. In these work environments, employees are rewarded for following rules and sticking to the company's shared norms. Similarly, leaders tend to emphasize traditional procedures and costumes.

  • 15% of cultures draw themselves as methodical and structured.
  • Example: Securities and Substitution Commission (SEC)

Jay Clayton, an American attorney serving every bit the Chairman of the U.South. Securities and Exchange Commission (SEC), stated that rule-making is a key role of the committee:

"When we are setting the rules for the securities markets, there are many rules we, the SEC, must follow."

—Jay Clayton

Benefits of agreement company civilization

Learning nearly the unlike types of company civilisation can be beneficial for both executives and managers in your organization. According to the study mentioned above, understanding where your culture ranks in this framework can help you recognize a demand for change in your organization.

"When aligned with strategy and leadership, a strong culture drives positive organizational outcomes."

Finally, agreement your visitor civilisation and values will be essential when hiring and developing new leaders for the future:

"Candidates for recruitment should be evaluated on their alignment with the target. A single model that can assess both organizational culture and individual leadership styles is critical for this activity."

Summary

Company culture is defined as the fix of core values, attitudes, and behaviours that characterize a company or organization. Co-ordinate to civilisation experts Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng, understanding your company civilisation and what is valued when hiring, promoting, and firing employees is an essential function of improving organizational performance.

If y'all are a new manager or leader, starting time by becoming familiar with your organizational values and culture. This will help you decide what types of behaviours are encouraged and rewarded, as well as the kinds of values that you should look out for when hiring new squad members.

"Successful leaders volition finish regarding culture with frustration and instead use it every bit a primal management tool."

Sources

  • The Leader's Guide to Corporate Culture by Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng
  • Harvard Business Review: The 8 Types of Company Culture