I’ve worked with all kinds of  companies. 

Some are really pleasant places to be. There’s an energy and a feeling of camaraderie. Stuff is happening, and it’s exciting. People like coming in the morning. They will say things like “it’s fun to work here.” 

Other companies are blah. Employees clock in and clock out. They move slowly, mainly focused on tasks, not outcomes. Work feels monotonous. Things get done… usually… eventually. If I ask the employees about their work, they’ll say things like “it’s a job.”

And then there are companies that are filled with a choking, venomous hostility. Walking into these businesses is like entering a battlefield. There’s an air of distrust and dislike. Employees badmouth and backstab each other. Any action is assumed to be sinister and self-serving. Company initiatives fail because coworkers won’t work together. An employee earning six figures once said to me “the only thing appealing about this job is the paycheck.” 

What makes a company positive or poisonous? 

Naturally, it’s not all one thing. If you give out huge bonuses and promotions, you’ll see a temporary lift in morale. If your industry gets crushed by external forces, your employees will be worried. 

But usually, the biggest credit or blame goes to the founders or managers. That means you. The company culture you build will have a huge impact on whether the atmosphere is a joy or a misery for everyone!

I’m going to assume that you do want a company that is crackling with constructive energy, and that you don’t want a combative workplace seething with anger and resentment. So what can you do to make your culture healthy?

I’m going to lay out seven fundamentals. Each of these could be a separate article, but if you focus on improving even one within your company, you can make a significant difference.

 

1. Model good behavior. It’s like parenting: what you do matters more than what you say. Do you want your team to be respectful? Keep their word? Appreciate each other’s achievements? Keep their cool under pressure? It starts with you.

 

2. Set clear expectations. Normal employees want to feel accomplished. Tell them clearly what you want them to do, and stick to those goals unless there’s a specific reason to deviate. I can’t stress this one enough. It’s maddening to employees when the boss constantly changes the rules of the game.  If you regularly “move the goalpost,” your employees will resent it… and they may start playing games with you, too.

 

3. Ask for, and don’t punish, feedback. Most dysfunctional businesses don’t start that way. Rather it happens like this: unfair behavior is tolerated, employees feel like they have nowhere to turn, and then they become sullen, checked-out, and defiant. Nip problems in the bud by asking for painful feedback. “Tell me how you think things are going” or “Is there anything we could be doing to make things more productive?” You don’t need to act on every suggestion, but you need to listen and seriously consider what your employees are feeling. 

 

4. Show appreciation. Yes, you’re paying them. And yes, you still need to say “thank you.” Read my article on how to show appreciation in a meaningful way. 

 

5. Hire by fit, not personality. The idea of “I only hire people I like” is ridiculous. It’s the best way to make sure you end up with the wrong people! Instead, figure out exactly what each position looks like, and hire the person best-suited for it. You don’t need to click with the personality of each employee. It’s much more important to make sure that each person is engaged, excited, and competent at their particular role. 

 

6. If you need to, fire quickly and cleanly. Usually, you can tell when someone is not working out. More than once, I have heard “we should have done this months ago” after a termination. If you see a downward spiral, be honest with yourself and the employee. Give them a fair chance to redeem themselves. If it’s not happening, part ways cleanly and mercifully. 

 

7. Invest in management training. Years ago, I was tossed into hiring and supervising without any background. It wasn’t easy. Since then, I’ve learned from in-the-field experience and from management experts. This is the reality: no matter how nice and likeable you are, you probably don’t naturally know how to manage. Invest in professional development for yourself and for your managers. Learn how to coach your employees instead of badgering them; how to deal with conflicts when they come up; and how to hold your people accountable.

One final word. Company culture isn’t a status thing. You can’t just fashion a wonderful company vibe and “set it and forget it.” Like any relationship, the dynamic in a workplace is a commitment. You’ve chosen your employees to work together toward a set of shared objectives. And even if they’re humming along happily today, things change. Business goes up and down; new challenges and opportunities arise; people come and go. It’s not enough to make a good company culture 一 you’re going to have to put ongoing effort and energy into maintaining and nurturing it.