Company Cultures Fail Due to Misunderstood Beliefs, Not Values

Company cultures are often considered a critical asset by HR leaders, yet their definitions remain vague and abstract, according to marketing professor Marcus Collins of the University of Michigan. Collins observed that when asked to define culture, HR professionals and recruiters resorted to jargon and lacked concrete explanations. This ambiguity hinders a company's ability to attract and retain the right talent. Collins proposes that the fundamental error lies in conflating company values with underlying beliefs. Beliefs represent a company's core truths about the world, while values signify what the organization deems important. True culture, Collins asserts, originates from these foundational beliefs.

Collins emphasizes that leaders must first identify and articulate their company's fundamental beliefs. The critical next step is to assess whether the organization's behaviors authentically reflect these beliefs. A significant disconnect between beliefs and behaviors is a primary driver of cultural failure. As an example, Collins points to Wells Fargo in the early 2000s. Employees were pressured to meet aggressive sales targets, leading to the opening of unauthorized customer accounts. While Wells Fargo publicly espoused values such as trust and integrity, its operational behavior demonstrated an underlying belief that employees were expected to prioritize performance above all else. This misalignment between stated values and actual practices undermines a cohesive and authentic company culture.

Therefore, Collins argues that culture is not defined by superficial perks or repetitive rituals, but by the deeply ingrained beliefs that govern a company's operational framework. He suggests that organizations should identify their "North Star"—their guiding set of fundamental beliefs—and rigorously examine whether their daily actions and decisions align with this core. For instance, Patagonia has built its culture around a strong commitment to environmental sustainability, a belief that permeates its business practices. The challenge for Chief Human Resource Officers (CHROs) is to first critically examine their own perspectives on the world and broaden their understanding of what constitutes culture. This expanded view is essential for them to effectively engage with and shape a genuine company culture. The process requires a deep dive into the organization's foundational truths and a commitment to ensuring that actions consistently mirror these truths, fostering an environment where employees understand and are guided by a clear, consistent set of principles.