“How does a company develop the culture of the business? Is it something that is planned or eventually forms as the business grows and develops?”
The following is from a contemporary technology and business innovation/change management perspective.
Elliott Jacques’ (1951) defines culture as the “customary and traditional way of thinking and of doing things, which is shared to a greater or lesser extent by all [...] which new members must learn, and [...] accept, in order to be accepted into service in the firm”.
In simple terms this definition suggests that the culture is planned and established when the company is set up, such as the logos, titles, as well as the business and power structure. For example, does the company use processes to control staff or rules? Is the company hierarchical (top-to-bottom) where the top man sets the core belief system, or is it horizontal where all staff play a vital part? Culture is often expressed as “the way we do things here” so includes accepted rituals, norms, values, acronyms whether set by management, influenced by staff, or both, over time.
Today, companies are redefining their culture, strategically expressing and using their culture as a dynamic (changeable) competitive advantage, a tool that sets the company apart from competitors, and entices loyal customers and quality staff with the ‘matching’ mindset. That’s why, today, we see an abundance of statements such as “People over process” (Netflix, 2020), or, “Move fast. Be bold. Be yourself (Facebook, 2020). So, a modern company’s strategy is one that embraces and plans for ongoing culture statement changes with the times, to always remain fresh, relevant and enticing.
Companies are also changing their cultures completely to ensure longevity. IBM are an example of successful cultural change from black suited, rules orientated, to the dynamic company it is today. The IBM story makes good reading.