15 Keys to Build a Winning Culture

 

Peter Drucker said, “Culture eats strategy for breakfast.” Though the quote is attributed to him, it is not known exactly when he said it. Either way, it remains a powerful reminder that culture is the true differentiator in business. In an era where products are commoditized and every firm knows what every other firm does, culture will set your organization apart.

For example, Southwest Airlines was known as the low-fare airline, but it’s their unique culture—rooted in passion and exceptional customer experience—that truly distinguishes them. Although other airlines have tried to imitate this model, none succeeded, proving that culture cannot be copied.

Here are 15 ways to build a winning culture in your organization:

1. Evangelize the Mission Statement

While mission statements may seem unexciting, they are essential for creating a culture of inclusion. As Shakespeare might say, many mission statements are “full of sound and fury, signifying nothing.” A mission statement should be simple enough to understand yet powerful enough to inspire. It must ignite passion within employees, making them excited to bring their best to work every day.

For example, Southwest Airlines’ mission statement—“dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit”—has stood the test of time, with results to show for it.

2. Set BHAGs (Big Hairy Audacious Goals)

BHAGs motivate everyone toward a shared vision. Henry Ford’s goal of “democratizing the automobile” in the early 20th century energized his entire organization. Similarly, in 1996, Starbucks had the ambitious goal to “be one of the most well-known and respected organizations in the world, known for nurturing and inspiring the human spirit.”

BHAGs push organizations beyond comfort zones and align everyone with a common purpose.

3. Transparency

A culture of transparency fosters trust. Employees must feel that they have a voice and that it is valued. Open communication ensures both positive and negative information is shared, without sugarcoating. For example, during the 2008 recession, Barry-Wehmiller didn’t lay off employees. Instead, the company created a furlough program where each person took four weeks of unpaid leave, spreading the burden equally. This transparency and fairness ensured loyalty and strengthened trust across the organization.

4. Cultivate a Feedback-Driven Culture

A feedback-driven culture enables continuous improvement. Feedback should flow top-down, bottom-up, and peer-to-peer, ensuring everyone has a voice. Netflix exemplifies this through their “radical candor” philosophy, encouraging honest feedback that fosters personal and organizational growth.

Feedback isn’t just about correction—it reinforces positive behaviors that align with company values. A feedback-rich environment builds trust, promotes innovation, and creates a sense of belonging, leading to a stronger culture overall.

5. Identify Key Result Areas (KRAs)

Each person in the organization must know exactly what they are hired to achieve. KRAs clarify priorities and ensure alignment. For instance, a sales executive’s KRAs could include generating leads in specific geographies, meeting revenue targets, and maintaining profitability.

When employees are clear on their goals, they are more focused, productive, and satisfied, leading to better outcomes for the organization.

6. Cult-Like Culture

Some organizations, like Nordstrom, have developed cult-like cultures that set them apart. A unique culture, once created, becomes impossible for competitors to replicate. In their book Built to Last, the authors describe visionary companies as being so clear about their purpose that they only attract people who fit their values.

The key is to involve employees in defining and refining the culture through brainstorming and open discussions. When employees shape the culture, they feel more committed to it.

7. Celebration

Celebrations foster camaraderie and enhance morale. Recognizing achievements—such as winning a new client or hitting a sales target—helps employees feel valued and appreciated. A culture that celebrates success communicates what actions are rewarded, reinforcing the right behaviors.

Celebrating together builds team spirit and strengthens emotional connections within the organization.

8. Create a Scorecard for Rewards and Recognition

Work is a lot like sports—it’s more enjoyable when there are clear goals and rewards. Developing a fun scorecard for performance encourages employees to excel while promoting a playful, competitive spirit.

Recognition not only motivates employees but also cultivates team camaraderie. When people view work as enjoyable, they bring their best selves to it, resulting in greater job satisfaction.

9. Build Psychological Safety

Psychological safety, a term coined by Amy Edmondson, is essential for innovation and collaboration. Employees need to feel that they can speak up without fear of judgment or retaliation.

When organizations build psychological safety, every team member—regardless of level—feels empowered to share ideas and feedback. This leads to better decision-making, more creative solutions, and stronger team dynamics.

10. Purpose

A winning culture connects everyday tasks with a higher purpose. Employees are more engaged and committed when they see how their work contributes to the larger mission.

Purpose-driven companies inspire employees to go above and beyond, leading to sustained success and meaningful work.

11. Foster Cross-Functional Collaboration

Encourage departments to work closely with one another. Collaboration helps break down silos and ensures that teams share knowledge and expertise freely. Google’s cross-functional teams are a great example of how collaboration fuels creativity and problem-solving.

A culture that promotes teamwork enhances agility and allows organizations to respond quickly to changing market conditions.

12. Create Rituals and Traditions

Rituals create a sense of belonging and reinforce cultural values. Whether it’s a weekly team lunch, monthly awards ceremony, or an annual company offsite, traditions build emotional connections among employees.

These moments of connection strengthen bonds and serve as reminders of what the organization stands for.

13. Promote Diversity and Inclusion

A winning culture embraces diversity of thought, background, and experience. Diverse teams are more innovative, adaptable, and effective at problem-solving.

Inclusion ensures that every individual feels valued and respected, regardless of their role or background. This fosters higher engagement and creativity within the organization.

14. Lead by Example

Leaders must embody the culture they wish to cultivate. When leaders demonstrate the values they promote, employees are more likely to follow suit.

Satya Nadella’s leadership at Microsoft is a powerful example of how empathy and growth mindset can transform a company’s culture and drive business success.

15. Continuously Evolve the Culture

Culture is not static—it must adapt to changes in the workforce and business environment. With millennials and Gen Z becoming a major part of today’s workforce, organizations must create new rituals and practices that resonate with younger generations.

Creating an evolving, dynamic culture ensures that your organization remains relevant and attractive to top talent.

Building a culture is an ongoing process. As Malcolm Gladwell writes in Outliers, “Meaningful work is three things—autonomy, complexity, and a connection between effort and reward.” Ultimately, it’s not about how much money we make but whether our work fulfills us.

The views expressed in this article are my own and do not represent my organization.