leadership
The LEAD Round: The importance of organizational culture
Visit the VSCPA LEAD website at vscpa.com/LEAD.
Marty Einhorn, CPA
Tommy Blackburn, CPA
C
orporate culture is the sheet music that members of an organization follow. A strong culture can help guide employees’ decisions and ensure they act in accordance with the values an organization deems important. A strong corporate culture infuses even the smallest actions employees take. We went in-depth on corporate culture in this edition of the LEAD Round. We asked two VSCPA members — a seasoned CPA and a young professional — about why organizational culture is so important. Here’s what Tommy Blackburn, CPA, financial planner at Verus Financial Partners in Richmond, and Marty Einhorn, CPA, managing partner at Wall, Einhorn & Chernitzer in Norfolk, had to say. What is organizational culture and why is it important? TB: Organizational culture is the DNA of a firm. It is the people, beliefs and values that make up a firm. The culture of an organization creates the tone and environment inside a firm, which is also reflected externally. It sets the expectations and the mission of the organization. Culture is the blood of an organization.
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It is the shared values and beliefs that make up a firm. It creates the environment that a team operates in, can foster teamwork and productivity and create synergies. Culture can be palpable to the outside world. It will not only define and influence the mission of an organization, but also the expectations and manner in which it is to be achieved, and it can motivate the members of the organization. It is vital that there is a culture and that the members align with it. When the entire organization has a consistent culture, there is not a question of how to do things, how to work together or what manner to accomplish objectives. It can foster a strong team environment and allow an organization to be efficient and accomplish otherwise difficult or unattainable tasks. Culture can create a uniformity that is visible to external stakeholders and deliver a standardized experience. Culture can also attract and retain talent by creating an environment and mission that like-minded professionals want to be a part of/believe in, and simultaneously it can attract and retain clients that believe in the mission of the firm and how it is to be accomplished
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and have a desire to conduct business in accordance with the culture of the firm. ME: Organizational culture consists of the values consistently demonstrated by the leadership of a company. It is important to distinguish between the spoken or even written values and those demonstrated consistently by the actions of the leadership. Employees generally want to be part of an organization that has both vision and purpose. To the extent the vision and purpose are well-communicated and are consistent with the actions of the leadership, most employees will buy in to these values and will develop personal goals and expectations that align with the organizational culture. This alignment of efforts allows the organization to grow and prosper more quickly than if the organizational culture is poorly defined or inconsistently communicated. In addition, a well-defined organizational culture is a very effective recruiting tool as it allows potential hires to understand what is important to a company and its people and whether this aligns with their personal and professional goals. n
