What makes for a strong corporate culture?

"Corporate culture" has become something of a buzz phrase in entrepreneurial circles, to the point that it may at some point make Merriam-Webster's list of newly defined terms. Businesses aren't just about producing and providing goods and services to the masses. They're also about the melding of personality types, company policies and behaviors that combine to make a work environment one of a kind, ideally more relatable and welcoming than the competition.

While corporate cultures are by their very nature different and form almost invariably, establishing a strong one requires keen insight and actively promoting the kinds of qualities that a business owner wants his or her company to reflect.

However, as a recent poll suggests, saying this and doing this are two very different things.

For example, according to a recent survey conducted by Deloitte, more than 85 percent of polled executives said they believed culture to be a key component of success in the business world. Indeed, almost the same share – 82 percent – indicated culture had the potential to provide a competitive advantage.

However, when the 7,000 execs from 130 countries were asked if they thought their company's culture was where they wanted it to be, just 12 percent believed it was.

Who is behind the corporate culture movement?
It isn't just business owners who are desirous of a strong company culture; millennials are as well, a group which government data shows now represents the largest employee generation in America, even bigger than baby boomers, many of whom are in or approaching retirement. Millennials frequently desire to work for one company in order to establish themselves professionally. But when the culture is poor – evidenced by unhappy workers, lack of engagement and openness, among other flaws – worker turnover tends to rise. Indeed, according to a recent study out of Columbia University that was cited by Entrepreneur, the turnover rate is over 48 percent among businesses with substandard cultures, but just 13 percent where they're considered strong or "rich."

Maya Thevenot, associate professor at Florida Atlantic University's College of Business, noted that for business owners to establish the kind of culture they want, they first must identify the one that presently exists.

"Establishing a strong culture of integrity, where people have common interests and shared values, begins with understanding and defining an organization's culture," Thevenot explained.

With these organizations in mind, advisory services firm Deloitte has produced a human resources tool that helps business owners identify their workplace's core components or characteristics, such as inclusion, commitment, determination, friendliness, work ethic and courage. This, in effect, serves as a "culture audit," or the evaluating of a company's personality traits.

As Forbes contributor Larry Alton points out, though, a culture audit doesn't necessarily require HR tools, so long as companies have the systems in place to identify its composition along with a method to apply corrections where there necessary. The Balance offers several tips.

"In the long run, building a culture of integrity and a strong sense of purpose guards organizations against risk," advised Thevenot. She added that a strong culture also gives organizations a competitive advantage, which by its very nature strengthens bottom lines.

What are the fruits of solid corporate cultures?
Entrepreneur magazine spotlighted several well-known organizations that have impressed in the corporate culture domain, highlighting policies that have led to improved company performance, increased retention and reduced stress by helping staff achieve a better work-life balance.

With a name like the Law Offices of Donald W. Hudspeth, P.C., you'd think that our services are exclusive to the legal domain. While our legal bona fides are extensive, what sets us apart is our suite of strategic planning services, including – but not limited to – asset protection, starting a business, dissolution, and helping business owners craft the tenets, principles and guidelines that can serve as the building blocks for a truly robust corporate culture.

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