Culture plays a pivotal role in the success of any organization. It influences everything from daily interactions to long-term strategic execution.
However, what many organizations don’t realize is that their current culture type might not align with or fully support their strategic goals.
This article explores the various types of company cultures and offers insights on assessing and reshaping culture to become a powerful, strategic tool that drives success.
67% of leaders believe their organization is good at crafting strategy, but only 47% believe their organization is good at implementing strategy. (Cascade)
Features that Impact Organizational Culture
A few factors shape company culture and help define the environment and behaviors within the workplace. These influences impact how employees interact, perform, and align with the company’s goals.
Let’s take a closer look at some of the key features that shape and influence culture and the range of impacts each can have.
How Employees are Treated
Respect and support foster trust and engagement. In contrast, neglect or poor treatment can lead to disengagement and turnover.
The Company’s Mission
A clear mission aligns employees with organizational goals, while a vague mission can lead to confusion and lack of direction.
How Decisions are Made
Collaborative decision-making fosters inclusion and autonomy. Meanwhile, top-down or opaque decisions can breed distrust and a lack of ownership.
How People Communicate
Open, transparent communication promotes collaboration. Restricted or unclear communication creates silos and misalignment.
Work Expectations, Style, and Volume
Clear expectations around workload and flexibility enhance productivity and well-being, while unrealistic demands can lead to burnout and stress.
Types of Company Culture
Organizations aren’t one-size-fits-all when it comes to culture. There are many culture types, each reflecting different values, priorities, and ways of working. Understanding these types can help organizations recognize their own culture and determine if it aligns with their strategic objectives.
Below are some of the primary and secondary types of organizational cultures, offering a range of possibilities that organizations can adopt to thrive.
Primary Types of Culture
The following culture types are based on the Competing Values Framework developed by Kim S. Cameron and Robert E. Quinn.
Adhocracy Culture
Focuses on innovation, flexibility, and risk-taking, encouraging creativity and constant change to drive growth.
Clan Culture
Prioritizes collaboration and employee well-being, creating a supportive, family-like environment that fosters teamwork and loyalty.
Hierarchy Culture
Values structure, rules, and processes, emphasizing stability and efficiency with a clear chain of command and standardized procedures.
Market Culture
Competitive and results-driven, focused on achieving goals, performance, and market share in a high-pressure environment.
Other Types of Culture
These cultures often incorporate a combination of elements from the four primary types.
Strong Leadership
Driven by charismatic leaders whose vision and influence inspire and guide the organization’s direction.
Customer First
Centers on customer satisfaction, using feedback and market trends to shape operations and product development.
Role-Based
Aligns employees with roles based on their strengths, optimizing individual performance and overall success.
Task-Based
Assigns tasks based on skill set, encouraging employees to contribute across functions for greater flexibility.
Purpose Culture
Focused on a shared mission or cause, often non-monetary, uniting employees around a higher purpose.
Values-Based
Built around core values like inclusivity or creativity, deeply embedded in every aspect of the organization.
While there are distinct categories of company culture, many organizations find their culture is a mix of the types we’ve mentioned above. Can you identify your current company culture in one (or more) of these?
Crafting Your Culture
Using culture strategically requires understanding which elements align with your ethos and goals. Building a strong culture starts at the top—leadership must define the vision, values, and guiding principles. Here are key factors to consider:
Mission, Vision, and Values
These should be reflected in your culture to provide a framework for decision-making and behavior.
Customer Experience
Ensure your internal culture supports how you want customers to feel when engaging with your brand.
Employee Preferences
Consider your team’s communication style and interaction preferences, ensuring your culture promotes collaboration and trust.
External Influences
Be aware of industry trends, competition, and societal changes that may impact your culture.
Key Question to Ask
Organizations should start by asking: What culture gives my company the best chance to succeed?
For example, a company that thrives on innovation may benefit from a culture that supports risk-taking and creativity. At the same time, a mission-driven organization may need a culture centered on purpose and social impact.
Once you've defined your ideal culture, you’ll want to take these basic steps to implement it:
Get Buy-In & Feedback
Engage your team in the process to ensure they feel aligned with the vision.
Communicate Consistently
Embed your culture in all communications and materials, ensuring it’s clear at every touchpoint.
Lead by Example
Ensure leadership’s actions reflect the culture you’re working to cultivate. Consistency is crucial.
The right culture type for your company is the one that provides the best foundation to drive success since it will shape every decision, from leadership to customer interactions. This isn't just a strategic choice—it's the engine that makes the strategy work.
Ultimately, by aligning your culture with your goals and nurturing it from the top down, you lay the foundation for achieving those goals and driving sustainable growth for the long haul.
References
- https://www.cascade.app/blog/51-strategy-statistics
- https://www.betterup.com/blog/what-is-company-culture
- https://www.forbes.com/sites/tracylawrence/article/organizational-culture/
- https://www.atlassian.com/blog/teamwork/types-of-corporate-culture
- https://worldofwork.io/2019/10/cameron-quinns-competing-values-culture-model/
- https://www.workhuman.com/blog/types-of-organizational-cultures/
Dive Deeper
Take a deep-dive into this topic and gain expert, working knowledge by joining us for the program that inspired it!
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