The real reason why company cultures are doomed to fail

Most HR leaders consider company culture to be one of their most crucial assets. However, when asked to define it, their responses often vary and can lack clarity. Marcus Collins, a marketing professor at the University of Michigan, discovered this when he questioned chief people officers and recruiters about their understanding. He found the answers to be filled with abstractions, jargon, and ultimately, nothingness.

Collins proposed a new approach to defining culture, suggesting that leaders cannot attract or retain the right talent for a culture they cannot clearly articulate. He noticed that the issue begins with a common misconception many companies hold about what defines culture: their values. HR leaders typically mix up values and beliefs, according to Collins. While beliefs refer to the truths companies hold about the world, values represent what they consider important.

Collins recommends that HR leaders ask themselves a critical question: What do we believe? They should then examine whether their behaviors align with those beliefs. If there is a disconnect, Collins advises leaders to address it first. For example, Wells Fargo faced a significant problem in the early 2000s when employees opened unauthorized accounts for customers due to immense pressure to meet aggressive sales goals.

Despite espousing values like trust and integrity, the company's behavior demonstrated a different underlying belief: that employees were expected to outperform. This disconnect highlights Collins' argument that culture is not about perks or rituals but rather the fundamental beliefs that guide a company's operations.

Patagonia, on the other hand, has operated around a commitment to minimizing its impact on the planet. Collins advises leaders to identify their own North star and question whether their actions align with it. He urges CHROs (Chief Human Resources Officers) to challenge their perspective on culture and broaden their understanding of what it entails.

By doing so, they can fully engage in shaping their company's culture. Kristin Stoller, Editorial Director at Fortune Live Media, shared this insight in a recent article on Fortune.com.