Culture is a critical factor in your business’ success or failure. Culture is not something tangible and is hard to describe. A positive entrepreneurial culture will provide the company with the food it needs to grow healthily; a negative culture will poison everything your organisation tries to achieve. Growth is one of 8 factors building the value of a business
In an owner, driven business, the proprietor makes all decisions, and control the transactions. As the firm is highly reliant on its owner, the risk of a business losing its profitability following a succession is highest. This company is not yet ready to sell. A potential buyer would certainly value the company below 33 % of its potential value.
In a people-driven business, the main contributors and the owner share decisions and transactions, reducing succession-related failure, but the risk is still high since the key employees could leave, and thus take valuable information, and even customers, with them. This business is almost ready to sell, but a potential buyer would value this company at less than 66 % of its potential value.
In a company driven by process-the business is run by systems to ensure that operations continue as planned, with or without the owner or key employees, so the firm is set up well to run itself. This type of company has more inherent value than the first two levels and is in sellable condition. It could reach up to 90% of its potential value
In a culture driven company, the activity is run by both people and systems. We consider level four as close to a “pure investment” as a business can come. Its culture indoctrinates new hires into an environment of continuous improvement, based on systems. The result is what we call, a “Culture of Excellence.” This type of business has the least chance of succession related failure and is therefore considered the most valuable to a prospective buyer.
We would describe a culture of excellence as the shared values and codes of conduct that bind everyone together in a company to define how employees interact with each other, how they behave with customers, suppliers, and other external stakeholders. The leaders set out the right culture and make it a priority to meet their goals.
A real culture will help your enterprise – whatever its size – to achieve its aims, thanks to the enthusiastic support of staff who embrace the vision of their leaders. Because culture pervades everything the business does, this positivity and engagement will be apparent to both your existing customers and the prospects which will provide the company with its future growth. It will also help attract new talent and foster loyalty throughout the organisation.
Your business’ culture is critical. It is the key to ensuring you have talented employees committed to your business’ purpose to secure the business and loyalty of your customers.
There is no right or wrong recipe to build a real culture success because every company is different, but if you follow the four-step process “IDEA” it will help you achieve those goals:
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The first step in building a positive business culture is to investigate the current state of the firm, understanding:
Now that you have a right understanding of your culture, you can think about what needs to change and how you will achieve that:
There are two keys to success in communicating the vision and the culture you want to achieve – be clear and be consistent.
Start with an execution plan that sets clear and measurable targets:
During the change process to a new culture, you will certainly have both successes and failures. Monitoring them is crucial to adapt your strategy carefully, and make sure you implement the culture you aspire to.
Don’t be afraid to adapt, while continuing to communicate so that people know what’s going on effectively to enhance the value of your company through a culture of excellence.
Can your business survive without you?
If you wish to build up the value of your business and would want to explore what you could do to make it sellable, please do not hesitate to call Jean-Bertrand de Lartigue on +44 1656 766 363 or email him, email@example.com