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Grow Your Business
Feb 05, 2010
Changing your corporate culture as your business grows
By Mari-an C. Santos. Images courtesy of www.sxc.hu
When you add manpower to your growing business, substantial changes in the organization need to be made

Orders are pouring in, your employees are working at maximum capacity, you?ve ordered additional equipment, and you know you need to take on additional manpower to help fulfill demands. This is good news, of course, because these are signs your firm?whether you started a home-based business or a brick-and-mortar store--is really growing. However, additional staffing means change in setup, which in turn entails a change in system, how things are done, and how your people will approach the new work environment.

Where changes must be made
Archie Armada of MarinduqueLand Corporation emphasizes that entrepreneurs should communicate to their employees that changes throughout the company are necessary for the benefit of the entire company. "The overall culture should easily be changed to drive optimal success." He shares that vital changes must be made in...

  1. Corporate Image. This primarily involves the dress code. Whereas jeans and a t-shirt were tolerated before, a more respectable business attire is called for?reflecting the new business environment.
  2. Professional Growth. From within, staff should make a conscious effort to conduct themselves as the work demands. A casual attitude should be replaced by a professional mindset.
  3. Leadership Styles. This refers to the members of the management team. More is expected of the leaders of the company, who necessarily must have a longer and farther view to be able to steer the company in the right--and more prosperous--direction.

Ruben P. Anlacan Jr. of BusinessCoach, Inc. cites the aspects that must be changed so your employees (and you) can cope with the changes:

  • Policies and procedures must be formalized. Instead of relying on seat-of-the-pants decision-making, you must have ready-made solutions. There will be less time to handle problems and you may no longer find it possible to give everything your personal attention.
  • Control systems must be set up. Formal checks and balances must be instituted since there will be more people whose integrity still needs to be proven . Furthermore, it is more difficult to keep an eye on things when your operations are extensive.
  • Legal concerns must be given attention. There will be more legal requirements and scrutiny as you get bigger. Take care that you are complying with all the applicable laws.
  • Company image must conform to the higher expectations of clients. What may be considered a minor issue when you were smaller may be intolerable if they now see you as a large firm.
  • Employee expectations must be addressed. They will expect more benefits and compensation from a larger company. You can, however, require a higher productivity to offset the increase in expenses.
  • Delegate, delegate, delegate! This is the most vital move. Unfortunately, this is where most small entrepreneurs fail. The main reason for this is the lack of trust. The founder usually believes that no one but himself/herself can do the job. To counter this, you must realize that there is a point where you will have more to lose if you do not have time to attend to other critical tasks.

Why change the setup, anyway?

Understandably, change is never easy. It's always much easier to go with how things were being done before.

Anlacan relates how the president of a large and successful trading firm who, even as the company grew, insisted that every single transaction go through him. "There were hundreds of transactions per day! He became the bottleneck of the whole operation." This is a good reason to seriously consider institutionalizing changes in the company--because the physical change is only the beginning. Changes should be made, according to Anlacan, "to enable the organization to function effectively. A bigger company means a higher level of complexity. There will be problems that previously were not existent in a small firm."

Armada agrees, "As your business grows, you will be dealing with more complex and professionalized organizations and clientele. These changes would eventually gain the confidence of your clients. Firms with corporate mindset and strong cultures achieve higher results because employees sustain focus both on what to do and how to do it."

Armada enumerates the necessary changes which seem simple but carry much weight in transforming your firm's setup:  
1. Practicing professionalism. Coming to work on time, maximizing capabilities and potentials, and treating fellow employees and clients with respect are manifestations of this trait. It should not be neglected--whether one is wearing a collared shirt or Barong Tagalog to work.

2. Establishing work values. The company's mission and vision will be helpful as guiding principles for the staff to follow. When there are  clear goals and set of expectations, you can trust that your employees will be working towards achieving them.

3. Upholding beliefs. Strong convictions make a person answerable to a set of values that he or she holds dear. If each employees has a strong belief system, then management can trust them to uphold these in the workplace.

Holding your employees' hands while bringing about the changes

Knowing the general principles on transforming your company culture is of course not enough. Actually getting down to the nitty-gritty is difficult, to say the least. There is no rule book to how it can be done. After all, situations differ according to industry, company setup, and personalities involved.

Anlacan acknowledges this, but gives the following pointers:

  1. Emphasize the benefits that the new system will bring to the employees in terms of greater opportunities and stability of employment.
  2. Discuss, too, the dangers of relying on the status quo.  
  3. The management should be the first to show the way by being the role models of change.

 Armada adds that "very often, these programs involve the creation of incentives to reinforce the desired behavior." He says that you should approach your employees with compassion. "Express how much you care about them and their growth. Listen to them. These shifts would result to higher salary, a much more prestigious company, and a position with more responsibility because of the corporate climate."

Finally, Armada quotes psychoanalyst Carl Adams, on change: "You will never forcefully change someone else, but by liking that person as he or she is and helping them to like themselves even more, you will give them the most amazing power to change themselves."   


CONTACT DETAILS:
BusinessCoach, Inc.
Unit 201 Richbelt Tower, 17 Annapolis St., Greenhills, San Juan City
Telephones: (02) 727-5628, (02) 727-8860, (02) 727-7839, (02) 496-6949
Website: www.businesscoachphil.com

MarinduqueLand Corporation
34 St. Andrew St., Don Bosco Village, Better Living, Paranaque City
Telephone: (02) 776-2631  
Email: sales@marinduqueland.com
Website: www.marinduqueland.com


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“The money you pay for financial advice would be a long-term investment for your company.”

— Oliver Juanir,  Business Planners
(Entrepreneur, December 2008)

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