What is the real value of a company culture?

In the past the value of a company was usually calculated by using KPIs like EBITA or company results like market share and multiplying it with factors suitable to visualize the worth of an organization. The development of a company is consequently seen as the development of the measurable performance.

Of course, this will continue to have its place to make decisions about investment in shares or when evaluating the possibility of Mergers and Acquisitions.

However, we would like to argue that the value of the performance displayed by the numeric results of an organization does not show the full picture.

The reasoning behind is that the results are generated by the teams and individuals of the organization. It is the knowledge, skills, and competence of the people that when used in an efficient way creates the results. Consequently, results are not abstract values but the outcome of the organization’s, its parts and people’s way of working.

The ability of collaborating within a team and with other teams for example will most likely also determine the difference between success and failure.    

The way of working as a strong parameter of making a company successful is of course also determined by the underlying mindset of all co-workers and leaders.

Since the culture of a company consists of its people’s mindset and the utilized way of working it is more than logical to declare the culture of a company its biggest asset.

It is highly challenging but also rewarding to develop a superior company culture.

Moreover, it is basically impossible to copy a culture and consequently the real value of a company lies in its culture.

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