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Many words have been spilled on how to build your company culture: why it’s critical, how to get the most out of it, and incorporating wellness into your routine, but what about the no-nos?
Small businesses are a labor of love, fueled by the passion to develop a unique product or service for the market. As a business owner, your company can thrive or flounder depending on the type of company culture you develop. There are several things savvy business owners do right – but knowing what not to do can also steer your culture as you pursue your business goals. Here are five mistakes to avoid.
1) Unclear mission statement
First question: Do you have a mission statement? You should, it’s key to identifying your core values. If you don't have one, take a step back and examine your business plan's stated goals.
To quickly sum up, your mission statement is a distilled version of the company’s purpose. From shareholders down through middle management and line-level employees, everyone on the team should know the mission. While profit is always an objective, the important thing is to drill down on what drives a company’s purpose, things like philanthropy, charitable causes, community impact and customer satisfaction. A vague or uninspiring mission statement can leave employees disconnected from the company’s purpose. The mission should be specific and meaningful, offering a clear direction that resonates with everyone. If employees aren’t sure what the organization stands for or how their roles align with its mission, it can hinder motivation and unity.
For consumers, a clearly defined purpose and values can help them choose your business over another. For employees, your mission statement serves as a solid reference point for making critical business decisions.
2) Poor communication
So, you’ve got the mission statement, complete with objectives and measurable goals, but is it properly communicated to your staff? Good communication doesn't stop with the mission statement, the goals and purpose of your culture should be repeated to ensure understanding.
Effective communication is vital for fostering a positive culture. Miscommunication or lack of transparency can lead to misunderstandings, decreased morale, and a sense of distrust. Prioritizing open channels for honest dialogue—whether through regular meetings, feedback sessions, or accessible leadership—helps reinforce alignment and prevents confusion across all levels.
Marketing calls this "effective frequency" and it refers to how many times a customer is exposed to an ad before they take action. The most important takeaway from this concept, though, is consistency. Communication is more effective when the mission and the messaging are undeviating – from supervisors to employees, or from upper management to supervisors.
Opening the lines of communication so that the message is delivered clearly is the first step. To ensure your mission statement, policies, goals, and other important information are fully understood, teach and train managers to have employees restate your purpose in their own words to demonstrate their understanding and ability to carry out instructions.
3) Poor hiring choices
Many veteran hiring managers will tell you that sometimes the most qualified person isn't the best fit. When building a small business's company culture, making sure you're making smart hiring choices is important, but be sure to consider how well certain hires will work as part of your current team.
Every hire impacts company culture, for better or worse. Bringing in individuals who don’t align with the company’s values or who don’t support its mission can disrupt cohesion. A culture-driven hiring process helps ensure new team members not only have the right skills but also embody the attitudes and ethics that strengthen the organization’s values.
One tip that top HR managers recommend is asking which role an interviewee naturally takes in a team environment. Good hires should have enough self-awareness to understand where their natural talents lie, and whether they're a "detail person," natural leader, or second-in-command. Ensuring that you're hiring not just for talent but for the ability to mesh well with an existing team can easily make a difference in establishing your company culture. Asking the right questions in the interview process can help screen candidates who fit your company culture.
4) Focusing too much on the resistors
One school of thought regarding building a successful company culture goes something like, "convince the naysayers and the rest will fall in line." While this approach may work in some situations, building an effective company culture isn't one of them. As a leader, when you focus on the detractors – convincing them of the value of the company's purpose or attempting to sway them to participate in a mission that they may not value – it takes a lot of time and emotional energy. Prioritize those who are open to growth and engagement; this allows the culture to evolve naturally. When resistors see others benefiting from positive culture changes, they’re more likely to shift on their own.
Focusing on the detractors instead of encouraging those who already have embraced the company culture and mission may alienate those who believe in you. Instead, spend your energy and efforts on building a team that's already invested in the mission of your small business. Detractors will either see results and join in, or opt to pursue a better fit elsewhere.
5) Not living your mission
Harvard Business Review presented a study on how physicians focused on changing the company culture of their healthcare practices by actively embodying their core value, “Good health can’t wait.” Employees were invited to embody this purpose in their work and soon made strides in personal investment and innovation. A mission statement isn’t just words on a wall—it needs to be reflected in daily actions. Leaders must model the values they want to see, and employees need to see tangible examples of the mission in practice. Inconsistent actions can create a disconnect, leading to disengagement. Living the mission fosters trust and keeps the team unified and committed.
This notion of "living your mission" also applies to small business owners. It goes a long way toward instilling the importance of your company culture in your employees by demonstrating how to behave, make decisions, and treat customers within your value structure.
As a leader, you make many decisions each day. Having a clear statement of purpose, communicated effectively to an enthusiastic team of well-qualified employees is the foundation. It provides the structure for your team to operate toward a common goal. And the payoff of being an example to your employees? It inspires respect and invites imitation.
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BBB Great West + Pacific contributed to this article.