The true value of a company goes far beyond the numbers in its financial statements. Although it is logical that many owners concentrate on sales (how much they invoice), profitability or EBITDA, there is an intangible asset that can enhance (or limit) that value: culture.
This non -financial component has a direct and measurable impact on growth, productivity and preparation of an organization to face any transition or output alternative. In it Exit Planning Institute We call it Share capital. It is one of the fundamental axes of the “Value Wheel” that we use to diagnose the integral state of a company.
Beyond the financial. The so -called “intangible” – like the culture, leadership or commitment of the team – are actually levers that multiply the value of a company. When working intentionally, they generate concrete and sustainable results.
A solid culture attracts talent, loyalty customers, improves internal climate and generates confidence in potential buyers or investors. In short, prepare the company to transcend beyond its founder.
What is a contagious culture? It is not imposed. It is built.
A healthy culture is that where people feel valued, safe and part of something bigger. It is achieved with deliberate actions: clear and constant communication, spaces of genuine participation, empathic leadership and values that are really lived in everyday life.
We can ask ourselves: were your company’s values built together or defined from an office? Do your teams know them? Do they share them? Is the behavior aligned with these values awarded?
Impact on productivity. When a person feels that he belongs and that he can express himself without fear, his performance improves. Conversely, when culture is weak, commitment falls, and the results too.
A culture based on the Accountability (Accountability), in collaboration and problem solving, generates value. It is not only what is done, but How to work together which defines collective performance.
Attracting buyers (or consolidating legacies). A strategic buyer not only looks at the numbers. It also evaluates the Cultural Fit -Gead of compatibility between values, beliefs, forms of work and behaviors with another organization. He looks for a company that works as a “little machine” with his own life, capable of sustaining himself without its founder. A solid culture reduces the perceived risk, facilitates the transition and increases the valuation of the business.
Culture is also key in cases of family succession, sale to partners or transition to employees. If the business has a strong identity, it will be easier to transfer it and maintain its essence.
Can culture be measured? Yes. Although intangible, culture manifests itself in specific practices, behaviors and results. These are some indicators that allow to evaluate and improve it:
- Clarity and experience of shared values
- Effective internal communication
- Collaboration between areas
- Agility in decision making
- Change capacity to change
- Recognition and rewards
- Team commitment (engagement)
- Feedback and performance evaluations
- Compliance with objectives
- Existence of frequent claims or conflicts
Measure and evaluate these elements offers us a deep radiography of the cultural state of your company.
Invest in culture It is not an expenseis one of the most intelligent strategies to build a valuable, transcendent and transcendent company. A company where people – and yourself – want to be.
Let’s start wondering today: How attractive is the culture of my company?
The results, in our “value wheel” and in the impact we generate, will they be tangible and transformers?
What is your answer?
*Gustavo Schutt, consultant specializing in Exit Planning and in increasing the value of companies. Author of “the reinvention of the owner”.
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By Gustavo Schutt
