Who Owns Company Culture: Leadership or Employees?

Company culture is often viewed as the foundation of successful companies, influencing everything from employee satisfaction to business performance. The question of who owns and shapes company culture is crucial. Is it primarily driven from the top down by leadership, or does it develop organically through employees' daily actions? This debate has practical implications for how businesses operate and succeed. Let's delve into both perspectives and how they intersect.

The Case for Leadership Ownership

The influence of leadership on shaping company culture is undeniable. Founders, CEOs, and executives often establish the company's core values, vision, and mission, setting the tone for the entire organization. For many companies, leadership is the driver in establishing the culture and introducing tools and practices.

Through my experience running HeyTaco, I have seen many CEOs, CTOs, and other leaders not only adopt HeyTaco initially but also become strong advocates for its use within their organizations. They understand that tools like HeyTaco can cultivate a positive and appreciative work environment, ultimately increasing engagement and productivity. When leadership actively participates in and supports cultural initiatives, it sends a clear message that company culture is a top priority.

On the Amazing Teams Podcast, I asked our guest, Eddie Geller, the Founder & CEO of SKOR,"How did culture end up in HR?"

Eddie's expertise lies in assessing corporate culture and is well-versed in this area. This question reflects a common notion that culture is often viewed as the sole responsibility of a particular department when, in reality, it should be a collective responsibility across the entire organization. However, here are three compelling reasons advocating for leadership to assume ownership:

• Vision and Values: Leaders are responsible for upholding the company's vision and values, communicating its purpose, and setting guiding principles. This creates a framework for the development of the company's culture.
• Modeling Behavior: Leadership sets the example for the behavior and attitudes valued within the company, reinforcing the desired culture.
• Formal Structures and Policies: Leaders shape the work environment through formal structures, policies, and practices, influencing organizational culture from hiring to evaluations.

The Case for Employee Ownership

Many argue that company culture is ultimately shaped by the employees who live it daily. While leadership can set the stage, the employees bring the culture to life, making it authentic and sustainable. This empowerment is a testament to employees' value and integral role in the company's success. Here are three reasons supporting the case for employee ownership:

• Cultural Practices and Traditions: Employees shape the company's culture through informal practices, traditions, and rituals, such as meeting conduct and celebrating successes. These practices emerge naturally and reflect the shared values of the workforce.
• Peer Influence and Social Norms: Workplace peer influence and social norms significantly impact employee behavior and attitudes, often more than formal leadership directives. These influences can either strengthen or weaken the desired company culture.
• Feedback Loops: Employees can provide valuable feedback on the company's culture, driving its evolution and ensuring its relevance and practicality.

A Shared Responsibility

The debate often presents leadership and employees as adversaries when shaping company culture. However, in reality, the relationship is more complex. The most successful company cultures result from active involvement from both leadership and employees. This shared responsibility promotes a collective effort towards a common goal. Here's how this partnership typically plays out:

• Leadership Sets the Foundation: Leadership sets the vision, values, and structures that guide the company's culture to ensure alignment with its goals.
• Employees Bring Culture to Life: Employees breathe life into the company's culture, shaping day-to-day experiences to fit their needs and context.
• Ongoing Dialogue and Adaptation: Culture is not static; it evolves. A healthy company culture involves ongoing dialogue between leadership and employees for continuous feedback and adaptation, ensuring a vibrant and compelling culture.

Final Thoughts

Who truly owns company culture? It's a collaborative effort, with leadership and employees playing vital, complementary roles. Leadership sets the vision and framework, while employees bring it to life through their daily actions and interactions. When both parties recognize their roles and collaborate effectively, they create a robust, cohesive culture that propels the organization forward.

Fostering a thriving company culture is not about who wields control but how leaders and employees come together to forge something meaningful and enduring. A unified culture, crafted and owned collectively, epitomizes a successful organization.

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