"Corporate culture matters. How management chooses to treat its people impacts everything for better or for worse." - Simon Sinek

In 2022, I was invited to a virtual summit for Latina entrepreneurs looking to scale their startups to new heights. When it was my turn to address the audience, I provided them with this checklist of 5 steps to evaluate the corporate culture of their ventures. It's a topic that is often overlooked but has a significant impact on the success of any organization, and therefore should not be neglected.

Why is it important to assess your company's culture?

Now, you might be wondering, why is it essential to evaluate your company's culture? Perhaps the question should be, why wouldn't you want to know how to shape the ideal environment to enhance your human talents' performance and, consequently, their results? Whether you're in the early stages of your business or have been in the market for some time, your company's culture is a crucial factor in your business success. This aligns with the thinking of 94% of entrepreneurs.

Assessing corporate culture is vital because it provides a clear insight into how the organization operates at its core. When properly assessed and managed, it becomes a valuable asset that drives success and sustainable growth for the organization. Happy employees are up to 20% more productive than their less satisfied counterparts.

Moreover, if you don't want to be part of the 63% of American companies dealing with employee turnover issues, paying attention to your company's culture is a must! According to studies by Morgan Philips Group, millennials make up nearly 35% of the current workforce, and this generation is 70% more likely to change jobs if the workplace environment doesn't allow them to scale their skills and progress.

Do you want to attract the best talent, retain them, enhance their performance, and maximize your profits? Start by assessing your company's culture using my 5-step checklist.

5 steps to evaluate your company's culture

Step 1: Check your recruitment process

Begin by looking at who you're attracting and hiring in your organization. Are you recruiting individuals who share your values and vision? Does your selection process consider both technical skills and the cultural fit of candidates? Is it transparent from the start?

Understanding what to evaluate and adjust in your recruitment process is essential for building a strong and consistent corporate culture. By attracting the right people from the beginning, you're laying the foundation for a culture that aligns with your values.

Step 2: Evaluate the fluidity and agility of your leadership and that of your managers

Next stop is leadership. How can you expect your human resources to be creative and empowered if your leaders are restrictive and hierarchical? It's essential to realize that leaders play a critical role in shaping corporate culture.

So, in step 2, assess the leadership style of your managers. Do they encourage innovation, collaboration, and autonomous decision-making? Do they promote open and transparent communication within the team? Are you investing in leadership skills development among your managers?

The fluidity and agility of your leaders are crucial traits to align their behavior with the desired culture.

Step 3: Review your incentive program (or its absence)

The third step is to explore how you reward your human talent. We often associate incentives with money, but it's essential to learn that money isn't the only reward that motivates people. In fact, you could give your employees the freedom to set their salaries... and surprise! Studies show that it wouldn't make them happier in their jobs.

The reality is that money doesn't buy happiness; it's a means to access opportunities that do. I talk more about this and managing your finances as a couple in this 15-minute MAC 15 video.

Evaluate how you recognize and appreciate your human resources' achievements and contributions. Are you offering professional development opportunities that motivate them to grow within the company? Recognizing effort and providing growth options are essential elements of a healthy corporate culture.

Step 4: Observe how your team interacts with each other

Analyze your team's dynamics. How team members interact and relate to each other significantly impacts corporate culture and reflects it.

Observe internal communication, collaboration, and conflict resolution among your team members. Is effective and open communication taking place? Are human talents collaborating effectively on projects and capable of solving problems together? How are conflicts and disagreements handled within the team?

A solid corporate culture facilitates open communication, collaboration, and constructive conflict resolution among its members. In the short and long term, this favors the reduction of bottlenecks in processes.

Step 5: Continuously evaluate and adjust

Once you've completed the first four steps, you'll understand that corporate culture is not static. It can evolve over time, and it is essential to assess it regularly.

A good way to do this is to seek insights from the people who operate within your company's work environment daily. You can conduct surveys with your human resources, organize discussion groups, and seek feedback to understand how they feel about the current culture and how it can be improved.

To ensure that this has a positive impact on the dynamics of your entrepreneurship, you must be open. Are you willing to adapt and continuously improve? Or is change a challenge for you? Flexibility is a fundamental quality for any leader, and in step 5, you will put it into practice.

With this checklist of 5 steps to evaluate your company's culture, you are ready to begin comprehending and enhancing the environment in which all your projects are conceived. Don't underestimate the power of a robust culture aligned with your values! This is a key competitive advantage in today's market.