Types of Organization Culture: Which One is Your Company?

Culture influences every aspect of your business, from the public perception of your brand to the job satisfaction of your employees and your bottom line. Because so much is at stake, it is important that your culture is adaptable and open to improvement - which begins with your ability to articulate exactly what kind of culture your company has.

While there are no two cultures that are exactly the same (the nuances are too great!), there are defining characteristics that tend to place corporate cultures into one of five categories or types that we have outlined below. Often a company's industry dictates its culture to a certain extent, but that doesn't mean that your culture cannot be changed. Fortunately, culture is not static, but evolves.

So which of these five types of corporate culture best summarizes your company? Or do you have some elements of each? While no single culture is the best or worst - each has its advantages and disadvantages - there is something to learn from companies that fall into one of these categories.

Team-oriented corporate culture

Team-oriented companies hire for reasons of culture, which firstly fit the culture and secondly the skills and experience.

In a company with a corporate culture in which the team comes first, employee satisfaction is the top priority. Frequent team outings, the ability to provide meaningful feedback, and the flexibility to take into account the family life of the employees are common characteristics of a culture where the team comes first. Netflix is a great example-its recent decision to offer unlimited family leave gives employees the autonomy to decide what's right for them.

Team-oriented companies hire people because their culture suits them and their skills and experience. Why? Because they know that satisfied employees produce more satisfied customers. It's a great culture that every customer service oriented company should embody, because employees are happier with their work and show their gratitude by making even more effort for customers.

Zappos is famous for its entertaining and nurturing culture as well as its excellent customer service. As its CEO once said: "Zappos is a customer service company that happens to sell shoes". And the way they keep employees happy with their work is not only by giving them the ability to express themselves with funky desk decorations (which everyone loves), but also by giving employees the autonomy to help customers as they see fit, rather than following strict guidelines and scripts. Customers appreciate the uncomplicated, personal service.

Potential pitfalls: The larger the company, the more difficult it is to maintain this kind of culture. That's why it's a great strategy for any company to have a team member dedicated to maintaining that culture.

You may have a culture of team spirit if:

• Employees are friends with people from other departments
• Your team regularly meets outside of work
• You receive well thought-out feedback from employees in surveys
• People are proud of their jobs
  

Elite corporate culture

Companies with elite cultures are often out to change the world with untested means.

An elite corporate culture only hires the best because it always reaches its limits and needs employees who not only keep up but lead the way (think Google). Innovative and sometimes daring companies with an elite culture hire confident, capable and competitive candidates. The result? Rapid growth and big jumps in the market.

Companies with an elite culture are often out to change the world by unchecked means. Their clients are often other companies whose products must remain relevant and effective in a new environment - a company with an elite culture, often founded by the elite. (That's how groundbreaking what we are talking about is).

SpaceX is a high-profile example of an innovative (and relatively young) company doing great things in aerospace manufacturing and transportation. Employees report that they are excited about literally launching rockets, but expectations are extremely high, and 60-70 hour work weeks are the norm. Nevertheless, the knowledge that they are doing meaningful, history-making work keeps most employees motivated.

Potential pitfalls: Such intensity can lead to competition between employees and people who feel under pressure to be there all the time. Benefits such as team outings, peer-recognition programs and health initiatives can counteract this.

You could have an elite culture if:

• Employees are not afraid to question things that could be improved
• Employees make work their top priority and often work long hours
• Your top talent rises fast
• You have many highly qualified job applicants to choose from

Horizontal corporate culture

Titles do not mean much in horizontal cultures.

A horizontal corporate culture is widespread among start-ups because it creates a collaborative way of thinking that is supported by everyone. These usually younger companies have a product or service they want to offer, but are more flexible and able to change based on market research or customer feedback. Although a smaller team size may limit their customer service skills, they do everything they can to satisfy the customer - their success depends on it.

In horizontal cultures, where communication between the CEO and the office assistant typically takes place through conversations across desks rather than through emails or memos, titles don't mean much. This is the experimental phase where risk is necessary and every attitude must count.

Basecamp is the perfect example of a successful company that cultivates a startup-like mindset. Originally founded as 37Signals, Basecamp announced last year that it would focus exclusively on its most popular product and maintain its relatively small size rather than grow into something much bigger and bigger.

Potential pitfalls: Horizontal cultures can suffer from a lack of orientation and responsibility. Try to encourage cooperation while maintaining clearly defined goals and knowledge of who is primarily responsible for what. Horizontal structure should not mean no structure.

You can have a horizontal culture if:

• Team mates discuss new product ideas in the break room
• Everybody does a little bit of everything
• The CEO makes his own coffee
• You still have to prove the value of your product to the critics
  

Conventional corporate culture

Traditional companies have clearly defined hierarchies and are still struggling with the learning curve for communication via new media.

Companies where a tie and/or trousers are expected are most likely of the traditional kind. In fact, any dress code indicates a more traditional culture, as does a number-based approach and risk-averse decision-making. Your local bank or car dealership probably embodies these characteristics. The customer is crucial, but not necessarily always right - the end result comes first.

But in recent years, the way these companies operate has changed dramatically. This is a direct result of the digital age, which has brought new forms of communication through social media and Software as a Service (SaaS). Today, traditional companies still have clearly defined hierarchies, but many are struggling with the learning curve for communication via new media, which can blur these boundaries. Facing this challenge can be a great opportunity for learning and growth as long as management does not resist. While new office technology is often at the bottom of management's list of concerns, more traditional companies are beginning to experiment with it as more and more millennia move up the ranks.

Founded in 1892, GE is about as traditional as its predecessors and is known for its no-frills management practices. More recently, however, it has abandoned its traditional performance appraisal system in favor of more frequent meetings between management and employees, and is even launching an app to facilitate feedback. It's the perfect example of an old-school company that embraces technology and change.

Potential pitfalls: This very straightforward approach leaves little room for inspiration or experimentation, which can lead to employees lacking passion or resenting being micromanaged. This can be countered by getting employees to understand the larger mission of the company - and by putting more trust in employees to work towards it.

Perhaps you have a conventional culture:

• There are strict guidelines for most departments and roles
• People in different departments generally do not interact
• Important decisions are left to the CEO
• Your company displaces the market
  

Progressive corporate culture

Uncertainty is the key feature of a transition culture, as employees often do not know what to expect next.

Mergers, acquisitions or sudden changes in the marketplace can all contribute to a progressive culture. Uncertainty is the key feature of a progressive culture, as employees often do not know what to expect next (see almost every newspaper or magazine ever). The "customers" are often separated from the company's audience because these companies usually have investors or advertisers to whom they have to account.

But it's not all pessimism. A major change can also be a great opportunity to become aware of the company's changed goals or tasks and to answer the most pressing questions of the employees. Managing expectations and countering rumours that arise through constant communication is the best thing a company can do to keep employees from fleeing or crouching. Change can be scary, but it can also be good, and smart employees know that. They embrace change and see it as an opportunity to make improvements and try out new ideas. And hopefully, they rally their colleagues around them to come on board.

LinkedIn's $1.5 billion acquisition of Lynda.com is a recent example of a company in transition. Ultimately, it's a game that makes sense - the companies' goals are aligned, and LinkedIn users benefit from the partnership. LinkedIn still has much to prove to its shareholders (their shares fell after the company attributed its annual revenue forecast to the takeover), and it recently reorganized its sales team and changed its advertising methods. But by being straightforward and showing how these changes ultimately lead to greater benefits, both LinkedIn and Lynda.com can thrive.

Potential pitfalls: A progressive culture can scare employees for obvious reasons. Any change in management or ownership - even if it's good for the company - is not always seen as a good thing. Communication is essential to reduce these fears. It is also a good opportunity to hear feedback and concerns from employees and to retain top talent.

You may have a progressive culture if:

• Employees speak openly about the competition and possible acquisitions
• Your company has a high fluctuation rate
• Most of your money comes from advertisers, grants or donations
• Changes in the market affect your income
  

So what kind of corporate culture does your company identify most with? Or does it have characteristics of a few different types? Either way, it's a good bet to take the elements from everyone that work best for your company, and if something doesn't fit with your company's goals, leave it alone. Your corporate culture is not just passive, and with difficulty it can be adapted to your team.

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