Building Company Culture Through Authentic Storytelling and Action

In the business world, culture isn’t something you can purchase or create overnight.

It’s a living, breathing entity that develops organically over time, influenced by its employees’ collective experiences and stories. Dr. Jay Barney, a renowned scholar at the Utah Eccles School of Business, has extensively studied the relationship between leadership, culture, and storytelling.

His insights have shed light on the profound impact of authentic stories and meaningful actions in shaping a company’s culture. This post will explore building company culture through storytelling and taking genuine steps that resonate with employees.

The Power of Authentic Storytelling

Dr. Barney’s research underscores the idea that culture isn’t merely a set of values written on a company’s website or hung on the office walls. Culture is how employees’ collective stories about their organizational experiences define their culture. These stories are the lifeblood of a company’s identity, and they have the potential to either reinforce or reshape the prevailing narrative.

For instance, Dr. Barney discussed a powerful example on the HBR IdeaCast podcast titled “If you want culture to change, create new stories.”

He shared the story of a manufacturing company that faced a significant quality issue. Instead of sweeping the problem under the rug, the CEO took a bold step by admitting the issue openly to the employees.

He emphasized the importance of quality and encouraged everyone to actively participate in finding solutions. This story acknowledged the problem and set a new tone for the company culture that prioritized transparency, problem-solving, and collective responsibility.

In another story, the CEO changes the highly hierarchal organizational structure when he learns that the customer service department needs fourteen pieces of information it couldn’t access. He required his senior executive leadership team to report to these part-time people in customer service until they got them what they needed. This shift is so powerful that employees retell the same story repeatedly because it demonstrates a significant cultural shift. This hierarchal organization now had a story that shifted the culture by making leadership in service to the frontline workers.

Authentic Actions That Resonate

Building a company culture goes beyond just telling stories—it requires taking authentic actions that align with the narratives being told. In Dr. Barney’s example, the CEO’s transparency was a decisive action that matched the story of acknowledging and addressing the quality issue head-on.

To foster a culture of innovation, Google famously introduced “20% time,” allowing employees to dedicate a fifth of their work hours to personal projects. This action was rooted in the story of Google’s founders, who believed in empowering their employees to pursue their passions. This initiative reinforced Google’s innovative culture and inspired countless success stories, such as developing Gmail and Google Maps.

Three Key Takeaways

  • Authentic Stories Drive Culture: Stories are the backbone of a company’s culture. Whether they highlight successes or acknowledge challenges, original narratives shape how employees perceive and engage with their workplace.
  • Actions Must Match Stories: Authenticity is paramount. Activities that align with the stories are essential in reinforcing the desired culture. When leaders lead by example and embody the company’s values, employees are likelier to follow suit.
  • Continuous Evolution: Culture is not static; it evolves. Encourage the creation of new stories that reflect your organization’s evolving values and goals. Be open to change and adapt your actions accordingly.

Dr. Jay Barney’s insights teach us that culture is not a top-down dictate but a living narrative constructed through the stories employees tell and leaders’ actions.

To shape a thriving culture, companies must foster authenticity, align actions with stories, and remain open to evolution. By doing so, they can rewrite their narrative and create a workplace where employees feel connected, motivated, and proud to be a part of the journey.

Company culture is created through authentic action and the retelling of narratives.

Want to change your culture? Change the narrative that employees retell over and over.


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