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Companies & Corporate Culture Print

 

Imageby Steven B. McKinney

McKinney Consulting Inc.

 

Everyone wants a job. But what does it mean to want a job? What does it mean when members of a society refuse to re-elect a politician because of lack of jobs? What does it mean when we say that we 'deserve' a job?  And finally, what is our relationship today to the companies we work for?

Things weren't always like they are now. Prior to the industrial revolution, most members of Western societies made their own way in life. Either by working on a farm, or ranch, or by becoming an apprentice to some skilled master, individuals produced as much as they consumed and maybe a little more to purchase things they didn't make directly.  In such times, a job was definitely who and what you were. Jobs were very central to self-definition. One’s work often became even the source of one's name.

Then came the industrial revolution and the introduction of capital to the mix. Suddenly, individuals stopped relying on themselves and started relying on others, the owners of physical capital such as machinery, and factory facilities, to create jobs and supply them to the rest of society. Some time before that, companies were formed to mass the transactions of business under one roof and thereby save costs on repeated activities.  With the industrial revolution the company and the capital became synonymous and we have the world we see today, a world where all work is organized under companies.

So if companies are so important, and we all want to work for one, what do we really know about them? How much thought have we given what they are?  A corporation is a living entity. It is like a human being in every way but its inability to vote. I can make a company that will go on even after I die. The company pays taxes, it has an address, and it even has it's own legal rights completely separate from any human being associated with it.   We say companies have 'character' and companies have 'reputations' and that we 'trust' them.

And what do we mean when we say a company comes from a certain place? People always say, an American company, or a Korean company, or a Japanese company. But what meaning does that have today? American companies are often owned by foreigners, with most of the manufacturing in foreign countries and investing a majority of new capital in foreign countries. Korean companies such as Samsung Electronics, are mostly owned by foreigners, rely on non-Korean markets for growth, manufacture abroad, and import a significant part of their components. What makes one company foreign and one company Korean? Are we talking solely of the country of their origin, or are we talking of something more?

 So now we've seen just how much a company looks, acts, and lives as a living, almost breathing thing, without being associated with a human being at all. We trust it. We are loyal to it. We put our lives in its hands in so many ways. What is it that allows a company to remain constant long enough to gain our trust? What is it that builds the reputation of the company, the long term ability to constantly satisfy and make great things? It is culture. The culture of the company lives in the company and moves through the company like blood through veins. The culture of the company is what builds that company's particular processes, habits, and nature.

We know an American company by its culture. Similarly, we believe that to succeed in making a Samsung television a Samsung television no matter where in the world it is made, the Samsung culture must be present in the production facilities. It is not the home culture of the workers, but the culture of the company that plays the prime role in deciding if the product comes out the way the company intended.

 Therefore, it is the culture that decides if we trust a company. It is the culture that builds reputation, trust, and excellence in the company's mechanisms and transactions. It is the culture we believe in when we make a statement about quality or excellence of a specific company, not of a specific product. A company's culture is created early on and developed throughout the life of the company. It is ingrained deep in the company, and pervades everything the company does. But where does the culture itself come from?

Does leadership mandate culture? Can it be written on a piece of paper and become law? I think not. Culture comes from the daily beliefs, actions, and decisions of the company's stakeholders. That means that the decisions, beliefs, and dreams of the investors, managers, and most importantly each and every employee ultimately decide what a company's culture will be.

Where do you fit into all this? Notice how our two fictional characters John Kim and Steve Park have the same job titles and positions working in two different companies and how they fit within the different corporate cultures they work in.

Mr. Kim and Mr. Park work as buyer trainee/distributor positions within the corporate offices of their respective companies, Nike and Home Depot.  Mr. Kim’s job is to work with the buyer for men’s Cross Training Athletic shoes, distributing these products to the stores throughout the country.  Mr. Park has the same job and responsibilities but works for a buyer distributing all makes of hammers that Home Depot sales. Even though these positions are identical and salaries comparable, the corporate cultures they work in are quit different.

Mr. Kim’s typical workday is different from the moment that he gets up in the morning.  He has quite a variety of choices to make in his work attire.  He can wear basically any type of casual clothes he likes except no shorts in the wintertime, because it is too cold.  He prefers his Levi jeans and a nice tee shirt that it picked up as a memento at last years extreme Games he attended with other Nike employees. Of course they were working. Also, at Nike they really believe in the work/life balance of all their employees and offer flex work times.  You can choose to come in and work 8 to 5 p.m. or 10 to 7 p.m.  Mr. Kim is not a morning person and likes to stay up late at night, so he normally takes the 10 to 7 p.m. option.

On the other hand Mr. Park’s typical workday is well regimented in that his choices are limited.  All men in the corporate office must wear suits and usually white shirts with conservative ties.  The president dresses this way and everyone else is expected to do the same.  All management at the corporate office must be in their seats prior to 8 a.m. and even though 5 p.m. is the official quitting time, no one leaves at 5 or they would be considered not a company man or company woman. 

John really enjoys the free flowing casual upbeat tempo of his office.  Everyone is on a first name basis; even the president is referred to as Bill.  He often walks thru the different areas and asks questions on how we are doing and if there are any success stories of late.  He is very approachable and liked by all employees.  The other day he asked John (Mr. Kim) how his family was doing.  Also, John’s input on the distribution of his product is always welcome with open arms.  The culture here is that all people can contribute and are encouraged to do so.  We win together and die together.  We all must contribute to the success of the company.

 Mr. Park works in a corporate culture where there are many rules and regulations within a vertical structure.  The appropriateness of whom you speak to is carefully guarded.  It would be political suicide for Mr. Park to speak to the President about any issue unless he was specifically asked a question.  The buyer Mr. Park works for is a very regimented and makes all of the decisions himself.  Mr. Park is given the amount of a specific order and then is asked to do the paperwork to distribute according to the historical data.  His company supplies at least one case to the small stores, two cases to the medium stores, and the buyer will determine himself how many cases he wants to send to the larger stores.   The working schedule is tight and no one arrives late to work without having been given permission earlier.  People that are late three times or more are usually fired.

As you can see from these two extreme examples corporate culture is deeply rooted within a company and affects the lives of everyone associated with it. From the clothes that we purchase and wear, the attitude and method that we communicate, and even the schedule that we maintain; all manners of behavior are subject to the corporate culture of the company in which we are employed. Our families, wives, children, parents and friends are all affected by the corporate culture of our companies yet we fail to realize it.   

How can I affect it?  Make it better? Make it worse? Add my own personality into it? The best way to do this is to actually do your homework.  In your studies you spend a great deal of time researching and memorizing facts and figures of a given subject.  However, when it comes to studying for our careers most people fail.  The majority of the executives that I interview I have to give a grade of an F.  Most have done little to almost zero preparation for their careers or job hunt. 

Usually, we have to adjust and advise major changes to candidate’s resumes and cover letters to keep them up to par with today’s standards.  The Internet is full of free sites that you can go to seek advice and look for examples.  But the thing that almost all people fail to recognize is the search that they should do on the companies they are interested in or are being introduced to.  All companies are not for everyone; that is a ridiculous notion.  So, why do we not do our homework on such an important decision that really affects all parts of our life?  I don’t know the answer but I suspect we want the easy way out with limited work.  People often come to me and ask, please get me a job. “Where is my job?” They usually have not done any preparation and want a job to be just laid into their lap. 

Unfortunately, it is quite difficult for an individual member to make a serious change in a corporate culture. However, it is not impossible.  Let me explain using my own company as an example.  I am the founder, president and CEO of McKinney Consulting.  My deep-rooted beliefs and vision are engrained in everything that we do.  I have had employees that have not truly committed to the beliefs that McKinney is grounded on, so they have not survived. Using my company as example I will explain specifically about our corporate culture.

In the area where I was born and grew up we say "raised in a Christian home." So, I have Christian values that I live by and enjoy.  If you know this, and understand what Christian values are you will not be surprised about the corporate culture of my company.  I do not believe in forcing my will or beliefs on any one and I do not want others beliefs pushed on me. I believe that all men and women should have the right to worship whom and what they may accordingly to the dictates of their own heart.

 

Further more I believe in the Golden Rule of:  “Doing unto others as you would have them do unto you.”  Unlike some of my competitors I believe in treating my candidates just as well as I treat my clients with dignity and respect. Often, people in my business do not communicate enough with the candidates.  They do not tell them why they were rejected from a position or why someone else was hired.  We respond 100% to everyone that we are in contact with and often.  Today an individual may be a source of information. Tomorrow that person may be a candidate for one of our positions, and the next week they could actually be one of our clients.

Once I interviewed a lady to work for my company and I asked her to tell me one of the things that she did not like about our business.  She stated that her current boss encouraged to lie to candidates and clients to make the sale or close the deal an she did not like it and wanted to quit.  Obviously, the corporate culture of that company did not match with her ideal corporate culture.

Corporate culture is pervasive. It reaches into a company's ranks and determines even the smallest of characteristics of a company. Corporate culture's mechanism for affecting things is by creating attitudes in the employees, executives, and managers that affect decision-making. Corporate culture is as real a part of the corporation's assets (or liabilities) as any factory, machine, or technology.  When people make a decision, the culture is always in the backs of their minds affecting the outcome.  It is a real part of daily life inside the company as well.

 

About the author: Steven B. McKinney is the founder and president of McKinney Consulting Inc., Korea's most trusted executive search firm.  McKinney Consulting offers a comprehensive range of personalized, professional resource services to a wide cross-section of companies operating in Korea and Asia.  Mr. McKinney is a globally established commentator on international management.  He can be reached at This email address is being protected from spam bots, you need Javascript enabled to view it

 
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