In our work with companies, we talk about culture. A lot. And we always get asked, “What does that mean? Culture?” and “Why is culture important when it comes to the value of my company?”
The standard elements for valuing a company are the following:
- Financial performance
- Revenue projections and potential
- Cash flow and cash position
- Market position
- Reputation with customers and vendors
- Ability to operate independent of any one person, vendor, or client
- How dependent is the company on you and your contribution?
These are all common elements that we work on with you. But the real secret sauce lies in your company culture. Let me give you an analogy.
Let’s compare two companies with different cultures. All else being the same – equal size, equal market position, and so on. All things equal except this thing we identify as “culture.”
When you walk into one company, it’s like walking into a room full of balloons. All the balloons are filled with helium and are floating on the ceiling. When you want to address the staff, you’re looking up at them and trying to keep their enthusiasm from getting the best of them. You’ll have to grab the strings and pull them down to talk directly to them. Then you let go of the string and they float back up to that higher level. Keep the windows closed!
The other company is full of balloons too; but, when you walk in, all the balloons are inflated but with just regular air. They’re all there but resting on the floor. When you want to address them, you’ll be looking down at them and probably having to kick them up into the air, catch them, talk to them and then when you let go, they’ll just drift back down to the floor and wait for you to come back and kick them up again. Don’t worry about the windows.
Are you picturing this? In the second company, you can probably implement a program that will be like running thru the room kicking all the balloons and getting them up in the air but as soon as you end the program they’re all going back down to the floor. In the first company, you’ve got so much enthusiasm, you’re all going home everyday thrilled at what you’ve accomplished. (and talking like Mickey Mouse.)
Between those two companies, which do you think would have a higher value to anyone that walked in the door?
Get my drift?
Culture is important! Especially in this new age where the millennials are starving for careers with companies that “care.” Care about their community, the society, and the employees. Treating them as individuals, not as time cards in the slots on the wall. But, don’t fool yourself. Even our older employees have a deep need to find value in their work. They, too, want to work at a company and with people who “want to be there.”
Ok, I hope this makes sense to you. Go either kick the balloons up or grab some strings. Your culture. Your value.
If you need help kicking all the balloons up in the air, don’t call us. If you need help in making the changes necessary to create the company helium, by all means, call us. It will most certainly increase the value of your company.