The Secrets of Company DNA: Identifying and Defining Your Organizational Culture
For years culture was a mystery to leaders and organizations, an amorphous Holy Grail of organizational behavior that was rumored to make some companies stand out from the rest, and bring seemingly sterling companies to the ground. Eventually, enough companies began to excel by linking specific disciplines and behavior patterns to sustained success. The concept of culture became real and leadership experts began to talk about and attempt to design “company DNA.” The idea is that, just like the biological DNA that shapes living organisms, every company has its own unique DNA that influences its lifespan and overall success through its manifestations in processes, culture, and values.
By working with hundreds of companies to first understand and later intentionally upgrade their own DNA, we at Evolution have helped design work environments that attract top talent, foster innovation, and sustain growth from founding through the life cycle, and we have come to understand some of the secrets–and pitfalls–of identifying and defining organizational DNA. Here, we will explore a few examples from well-known businesses and share a few of the core insights we have developed for leaders who would like to build effective cultures around their own company’s DNA.
Google: Innovation and Empowerment
One of the most well-known examples of a company with strong, intentional culture built around a specific company DNA is Google, which has remained not only a global innovation leader but has been consistently ranked as one of the best places to work. This stems directly from the intertwining of two core elements of DNA: innovation and employee empowerment. It has been often noted that these two values can contradict each other and cause tension, but it is the tenacity to hold both, along with the tension between them, that makes Google such a unique company. For example, rather than drive employees towards productivity and speed on prioritized projects, the company famously encourages its employees to spend 20% of their work time on passion projects, unrelated to current tasks or deadlines. This practice has led to the development of successful products like Gmail and Google Maps.
What may not be as obvious in the example of Google, is that these cultural DNA strands were not invented on a whiteboard or theoretical brainstorm. The kernels of these values were already present in Google’s early leaders and began to show up and define the company’s culture from the early stages. This is one of the secrets of DNA we see many companies miss: identifying the DNA of your organization cannot be “aspirational.” It is not about who you WANT to be. You can’t just pick out a few elements of another successful company’s DNA and copy it. What Google models is a culture that was present and unique to them, already in existence, which was then encouraged and accelerated by company leadership and organizational processes. To identify and upgrade your DNA, you must start with an honest look at who you already are, what strengths (and weaknesses) are already inherent in your ways of working, and celebrate and build on them.
Apple: Innovation and Simplicity
Apple is another obvious example of a company whose DNA is synonymous with innovation, but with a very different flavor, because of the additional dominant strand of simplicity. Steve Jobs’ commitment to instilling in the company a relentless focus on delighting users with a seamless design and experience is well-known. This emphasis on simplicity at all levels permeated the company's culture and products. Apple sustained consistent recognition for its design and attention to detail because of the reinforcement of these principles in every aspect of the organization. They went far beyond being “core values” written on office walls and instead were defining elements of the company’s DNA. Which was critical to its success, in a much different way than our first example, Google, as one of the premier brands in the world.
Many have argued that these cultural principles have been used to excess, and in Apple’s case, this has sometimes shown up as much lower employee satisfaction. And yet Apple has remained true to its DNA identity. That is a second core discovery we have helped pass along to our clients on their culture journeys. The purpose of having a strong company DNA is NOT to eliminate problems. Your DNA must include a recognition of your company's weaknesses or blind spots. There will always be sacrifices, things you don’t do as well as other companies. A strong culture does not eliminate these downsides, it is honest about them, embraces them, and keeps the teams focused on the core identity values that set the company apart, not trying to be everything to everyone.
Patagonia: Environmental and Social Responsibility
A third well-known – and very different – example of clear and successful company DNA is Patagonia, the outdoor clothing and gear retailer renowned for environmental and social responsibility. A pitfall that many companies fall into in crafting their DNA is by thinking of it as a “branding exercise” – choosing values and principles they hope will appeal to the market (or their employees). Patagonia’s commitment to environmental and social responsibility is far beyond messaging but is a truly powerful example of deep and thorough company DNA. This commitment is voiced in Patagonia’s mission to "build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.” Whereas a branding message might show up primarily in customer-facing functions, this commitment at Patagonia is reflected in product design, supply chain decisions, recruiting and hiring, and philanthropic initiatives (many of which are not public). The company also encourages employees to take part in environmental activism by offering paid time off for volunteer work.
Perhaps the most groundbreaking example of the depth of these values in the company’s core DNA was when Patagonia’s founder, Yvon Chouinard, sold the company to Earth. While one can argue whether all of these processes were wise, or pure, it cannot be argued that they are inconsistent. Patagonia maintains a singular focus on its simply stated mission and values. Whether your values are similar or diametrically opposed, one lesson that Patagonia exemplifies well is that your DNA is best expressed in very few words. If people can’t easily remember it without looking at a poster, your DNA expression is not effective. People can’t easily remember more than 4 or 5 separate elements at most and so 10 Principle Company Culture statements are NOT effective company DNA.
Unlocking Your Company's DNA
We’ve identified, prototyped, and refined a very simple six-step process for how to identify, define, and intentionally shape your company DNA, from the beginning stages through your company life cycle, and, as we mentioned, have guided hundreds of organizations through the process.
Step 1: Discover - Uncover your company’s essence
Step 2: Design - Create a culture code that is authentic and compelling
Step 3: Prototype - Test your culture code before you release it
Step 4: Embed - From culture code to culture in action
Step 5: Amplify - Grow your team of culture builders
Step 6: Iterate - Treat your culture like your second product
If you are curious to learn more, the steps are described in our book, “Scale Without Losing Your Soul: The Startup Culture Guide”, which is written to make the process accessible whether or not you are using external consultants to assist you.
However you undertake it, we encourage you to take the journey. Understanding and embracing your company's DNA yields many opportunities and gifts that can help your organization stand out from the competition and leave a lasting impact on the world by clarifying what is most true, most unique, and most powerful about your company.
Are you ready to unlock your organization's potential by decoding your company's DNA? Evolution’s coaching and consulting services are designed to help you build a thriving organizational culture and drive lasting success. Reach out to our team HERE to learn more about our bespoke offerings on Culture Development.