Being Aware of ‘Business Culture Dilution’
Culture Dilution is a risk that businesses often don’t think about. Start-ups and SME’s that are striving for success need to understand ‘business culture dilution’ so they can put control measures in place to preserve the right culture that supports success.
“If the Business Culture is right, the Brand can grow and prosper”
Because for a growing business, the manner in which ‘day to day’ activities are conducted will only grow when the business maintains the right culture.
Learning about changing ‘Culture’
I had to learn what culture the business needed in order to grow through each different phase of the changing business life cycle. As my business grew, it became clearer what culture the business required to transcend into the next phase. I believe this is critical to cultivate success and growth.
The natural business progression from ‘concept -to- business startup’, and, ‘business startup -to- SME’ are generally similar, except when growth is involved…. because the business that has a single (1) employee is immediately diluted every time that another person is employed.
The person that creates a business brings with them the culture that is required to start the business; as the business matures, for it to become successful in the future, it is likely that the business culture must adapt to changes so that a growth culture is maintained.
What is important to understand is; “the culture of the 1st person to create a viable business will be diluted exponentially with every person that the business continues to employ in the future.”
What does ‘Culture’ have to do with business?
Business is driven by its Culture: “the culture that people are employed by”, “the culture for seeking out opportunities”, “the culture for delivering to promises”, and, “the culture that generates success”…… but ‘Culture’ is merely a component of the ‘Business Brand’.
“The Business Culture is ‘owned’ by the Business Brand simply because the Brand will be what the customer remembers”
When people talk about ‘Brand‘, they should understand that:
“Your Brand is the first exposure an individual has on you; who you are, what you are, and the promise that they feel you can offer to them in the future….this perception is equal among individuals and for businesses”
The Brand captures the “Big Picture” of the business……
- it’s people; how they interact and represent the business,
- it’s customers; the audience that generates user involvement,
- it’s suppliers; the contributors to business purpose,
- it’s investors; the fiscal risk takers,
- it’s transition through time; the business sustainability,
- how it is ultimately ‘trusted’ to perform in the future, and
- what is perceived as the ‘culture’.
- The Brand is what ‘make people come back’.
- The Culture is what ‘make people in the business do what they do’.
Creating a Growth Trajectory Culture
When mapping the future trajectory of a business, the culture of the business will become a key factor for achieving success, and, this may need to change in order to progress.
For instance, when a business begins, the sheer reason for its existence is because of the business culture created by its founder….. there could be a number of reasons for the businesses initial success.
For example: from an entrepreneurial attempt at a new start-up venture (an ambitious and entrepreneurial culture) or be it that a business was purchased to provide an opportunity for creating a valued return on investment (an investment and risk averse culture).
When it comes to understanding the culture that is required to create a growth trajectory; this all begins with understanding the customer and what the customer wants.
Written by Geoff Pike, Entrepreneur, Speaker & Business Mentor
LinkedIn: https://www.linkedin.com/in/geoff-pike-australia
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ABOUT GEOFF
Geoff founded a sole trader plumbing business in a remotely located and vastly underpopulated location in outback Australia. Starting business with only enough money to pay 4 weeks wages, Geoff persisted by growing the business into a multi-disciplined trade services company. Over a period of 12 years, the company Geoff established grew to employ a workforce of over 300 personnel covering an area almost half the size of Europe, receiving international award recognition with an annual revenue of over $30mil. Geoff knows what it takes to overcome adversity.