Summary –
Lessons learned from big business for your small to mid-sized Professional Service firm. In today’s competitive business environment, a healthy company culture has become more than just a buzzword—it’s a strategic priority for businesses of all sizes. This article explores how large corporations have redefined organizational culture, especially post-pandemic, and offers actionable lessons for small to mid-size professional service firms. You will learn how shared responsibility for culture building can enhance employee engagement, reduce turnover, and drive sustainable business growth. We will also show you how to apply these principles to your own organization, with specific, practical examples tailored to businesses like yours.
As business continues to shift and change, one idea has consistently gained attention — fostering a “healthy company culture.” A quick online search reveals that discussions about organizational culture dominate news feeds, with COVID-19 in early 2020 acting as a game-changer in how leaders interact with employees and how coworkers connect. However, this shift was just the beginning.
The focus soon expanded to Diversity, Equity, and Inclusion (DEI), or “Belonging” as some prefer. DEI has been a topic of discussion for decades, but 2020 marked a turning point. Research has shown that companies with a strong commitment to DEI not only foster a better work environment but also see tangible financial benefits. According to a 2023 McKinsey report, businesses in the top quartile for gender diversity were 39% more likely to outperform their peers on profitability, up 14% since their 2020 report. This research emphasizes that creating a healthy, inclusive culture isn’t just a moral imperative; it’s a business one too.
For small to mid-sized businesses, adopting a proactive approach to inclusion can yield significant benefits. While large corporations may have formal DEI departments or programs, small businesses can integrate DEI principles by:
- Engaging all employees in DEI initiatives: Use team meetings or retreats to involve staff in setting goals to build a culture of inclusion.
- Taking advantage of your size: Small teams can foster closer, more genuine relationships, which helps create a deeper sense of belonging.
These approaches can foster a more positive employee experience and contribute to your overall business success.
Post-COVID Shift: Emphasizing Work-Life Balance
After COVID, employees across industries began reevaluating their work-life balance, and many rejected the long-held norms of overwork. This shift is especially relevant for small to mid-sized professional service businesses. The new generation of workers is looking for more than just a paycheck—they want work that aligns with their values and gives them a voice in the company’s direction. Recognizing this shift is critical for retaining talent and staying competitive in today’s market.
For smaller businesses, this can mean:
- Offering flexibility: Many small firms are nimble enough to offer flexible work arrangements, which can be a strong attraction in today’s talent market.
- Encouraging leadership access: Since smaller teams naturally facilitate more interaction between staff and leadership, leverage this by establishing regular check-ins and feedback opportunities.
- Reevaluating “churn-and-burn” practices: Instead of pushing for long hours and ever-expanding workloads, focus on productivity and results, and assess reasonableness of workloads and the need to hire additional or replace staff sooner rather than later. A shift in focus can increase job satisfaction, reduce burnout, and ultimately lead to less turnover.
By adopting these approaches, small businesses can remain competitive in the talent war and foster long-term loyalty from their employees.
Lessons from Big Business: Culture as a Shared Responsibility
Cultural crises in major corporations like Boeing and Uber have highlighted the need for company culture to be a strategic priority. The traditional top-down approach no longer works in today’s environment. Research from the Harvard Business Review demonstrates that companies where culture is a shared responsibility—embraced by the board, management, HR, and employees—are more likely to experience greater success.
For small to mid-sized professional service firms, the lesson is clear: culture cannot be solely the responsibility of leadership. Every team member plays a role. Unlike large corporations with multiple departments, smaller businesses can implement a shared responsibility model by:
- Engaging all employees in culture-building: Hold regular “culture meetings” where staff can contribute to discussions about the company’s values and work environment.
- Empowering middle managers (or team leads): Even if your company doesn’t have a traditional “middle management” layer, empower team leads or supervisors to uphold and promote company culture in daily operations.
- Creating cultural champions: Appoint employees at different levels to act as “culture champions,” responsible for keeping a pulse on employee sentiment and identifying opportunities for improvement.
Practical Applications for Small and Mid-Sized Businesses
Middle managers in large corporations are often key to translating the company’s cultural values into daily actions. In small businesses, this role can be adapted by empowering team leads or department heads to take ownership of the company’s culture. This is essential, as these individuals are often closest to staff and can quickly identify and address cultural issues. Practical steps you can take include:
- Providing management training: Equip your team leaders with the skills to manage people effectively and foster a positive, inclusive culture. Even in smaller businesses, targeted leadership training can go a long way.
- Regular feedback loops: Ensure that team leaders regularly check in with staff to gauge engagement and identify any cultural issues. Encourage honest feedback and take visible actions based on that feedback to demonstrate the importance of culture in daily operations.
For small and mid-sized businesses, taking these steps not only strengthens company culture but also directly impacts employee engagement, productivity, and long-term business success.
Culture as a Business Strategy
The key takeaway for your business is clear: Creating a healthy culture is a team effort, requiring a shift in leadership style and an inclusive approach that involves everyone from executives to staff. Even small businesses can benefit from the lessons of larger corporations by fostering a shared responsibility for culture-building. This can be done by:
- Incorporating culture into your daily operations: Integrate company values into recruitment, performance management, and employee engagement processes. For example, when hiring new employees, assess how applicants align with the company’s cultural values in addition to their skills.
- Utilizing scalable tools to measure culture: Use employee engagement surveys or regular feedback sessions to measure how well your company’s culture is thriving and where improvements can be made.
By fostering this shared responsibility, you not only improve employee retention and satisfaction but also strengthen your firm’s overall performance and competitiveness.
Quick Recap
Cultivating a healthy company culture is a powerful strategy for small to mid-sized professional service firms, driving both employee satisfaction and business success. By adopting shared responsibility for culture, integrating DEI principles, and prioritizing work-life balance, smaller businesses can create an inclusive, engaging workplace that attracts and retains top talent. Embracing these practices not only strengthens employee loyalty but also positions your business for long-term growth and resilience.
At Ottum Enterprises, we specialize in helping businesses build and maintain a culture that supports growth. By focusing on strategy, operational excellence, and leadership training, we can help you create an environment where your people thrive, and your business can excel. Contact us for a free one-hour consultation to explore how we can support your cultural transformation. For more information: info@ottumenterprises.com / www.ottumenterprises.com.
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This article draws on current research, including the McKinsey & Company Report on Diversity’s Impact on Profitability, December 5, 2023, https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact, and was inspired by an article published in the Harvard Business Review on February 8, 2021, by Denise Lee Yohn, titled “Company Culture is Everyone’s Responsibility” (https://hbr.org/2021/02/company-culture-is-everyones-responsibility).
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