A great corporate culture has a profound effect upon ultimate success. When launching your new corporation, you can hire professionals for most of the details. This frees your time to focus on creating the environment you want for employees.
Basically, happy employees lead to happy customers. That causes profits and happy shareholders. Entrepreneurs must exercise constant diligence to avoid or destroy divisive measures that drive a wedge between employees and management. Few situations will sink a new corporation faster than managing to create a work environment where employees are alienated.
One of the first features to plan in a new business is a system for revealing the financial status of the company. Almost everyone must know revenue, major expenses, profit margins, and cash flow. More importantly, management should draw a connection of these things to employee efforts. People can make a difference only by knowing where and how to apply themselves most effectively.
Secondly, employees should have a role in making decisions. Workers on the front lines know about problems that have arisen. Intelligent managers tap the insight of these individuals. Management might not implement every employee suggestion, but at least the employees provide input before managers reach conclusions.
Next, develop a mechanism for providing feedback to employees. Ditch the annual performance review. Employees need specific praise for their accomplishments at least every week. Otherwise, they are unlikely to repeat what they are doing right. They may not even know how their contributions fit into the grander scheme of things.
Another positive for corporate culture is clearly conveying the corporation’s strategy. Management should convey both short-term objectives and long-term goals. When the overall strategic plan remains secret to the company founder, failure is likely.
Lastly, the number one scenario to absolutely avoid for assuring a sound corporate culture is to never talk down to employees. Everyone is likely to have good ideas and bad ideas. The heart of a great corporate culture is making sure the good ones are implemented and the bad ones quashed, no matter who provides insight about the distinction.
In summary, hire others to execute the formalities of a new corporation so that you can focus on building a great corporate culture. The result is happiness and prosperity.