When my co-founder and I decided that our company should expand beyond just the two of us and start hiring, we sat down to discuss something crucial for our future direction. We realized the need to articulate our common values. Although our personalities were quite different, there were key traits that made us a strong team. This shared DNA had to be the cornerstone of everything we did moving forward.
We took time to discuss what we valued in business and in life, jotting down keywords along the way. Ultimately, we highlighted the most significant ones, and the first letters of these words formed our internal tagline. We then defined what these keywords meant to us and why they were important. This process marked the beginning of our company’s DNA.
In my experience, not many entrepreneurs undertake this exercise, but I believe it’s essential for everyone. It’s not necessary to do this at the start of your business; even after a few years, the clarity it brings can significantly benefit various aspects of your operation. I’ll delve into this more in the blog. Even for solopreneurs, this exercise can be beneficial, as writing things down often brings greater clarity.
Why Writing Down Your Company’s DNA is Essential
Firstly, it provides guidance when things become unclear. You’ll always have a reference document to turn to during decision-making quandaries. This can be particularly helpful when you’re grappling with a problem and need to recall the core values you’ve committed to.
For everyone involved in the business, if the DNA is well-implemented and consistently applied, it imparts a sense of authenticity and character to the company. Employees find common ground, clients feel they’re interacting with a credible partner, and suppliers understand who they’re doing business with.
In the following section, I will provide examples of how to integrate your company’s DNA into various aspects of your business. The crucial point here is consistency and adherence to your established values.
The Hiring Process and Human Resources
Having a clearly defined company DNA greatly simplifies the task of selecting the right candidates. Beyond assessing a candidate’s skill set for the job, it’s important to consider how they align with your company’s DNA. For instance, you can ask questions about their potential reactions in specific situations, then compare these responses to your DNA to determine if they fit within your company culture.
Moreover, the relevance of DNA alignment doesn’t end once someone is hired. It should be integrated into staff evaluations and the onboarding process, emphasizing behaviors preferred in your culture. Conversely, your DNA should also be reflected in how you treat your employees. For example, if your DNA champions openness, then being transparent with your employees about the company’s financial status or impending tough decisions is essential.
Selecting Your Clients
Understanding your group’s identity aids in choosing the right clients as well. People are naturally drawn to those with similar values and beliefs, similar to how we tend to form social circles with like-minded individuals. This principle applies to acquiring and retaining clients in both business-to-consumer and business-to-business settings. The way your company presents itself tends to attract similar types of people.
For instance, if your company is known for being extroverted and bold, you’re more likely to attract attention from those who appreciate bold statements. Conversely, if your DNA leans towards humility in all situations, you might not appeal to a client who is drawn to a company that flaunts its achievements. In such cases, you’re more likely to attract clients who value a similar sense of modesty.
DNA Reflects in Your Work
It’s crucial to understand that your company’s DNA is deeply intertwined with your actual work. It shapes the decisions individuals make in how they approach their job. For instance, if you, as a founder, aim to create products with a high level of detail, but your company’s DNA doesn’t emphasize ‘attention to detail’ and instead highlights ‘we are a fast company,’ there’s a risk that your employees might prioritize speed over quality. This could lead to cutting corners, resulting in a faster-produced but lesser-quality product.
KPIs Based on DNA
If you believe that the DNA should be central to your organization, then it should be reflected in how you define your KPIs. While it’s straightforward to set financial targets, focusing solely on them overlooks the desired behavioral aspects of your company. Employees are less likely to embody the DNA values if they perceive that financial outcomes are prioritized over these values.
Of course, finances are vital and serve as important KPIs, but there’s more to business and life. For instance, if your DNA includes “we care about our clients,” customer satisfaction ratings could be an appropriate KPI. However, it can be more challenging to measure values like “we keep things simple” or “we reach for the stars.” These might not be as easily quantifiable, but it’s important to find ways to incorporate them into your KPIs. In these cases, you could use client feedback, internal feedback, or product reviews as means of assessing your performance against these values. Don’t give up too easily; you will find a way to ensure that all aspects of your DNA matter.
The Founder’s Behavior
To conclude this blog, I want to stress the pivotal role you play as a founder or company leader. Failing to adhere to your company’s DNA sets the stage for its erosion. If you don’t uphold these values, why should your staff? This underscores the importance of carefully considering and defining a DNA that resonates with you. After all, one cannot pretend indefinitely, can they?
In summary, I firmly believe in the power of a well-defined company DNA. Yet, it’s crucial to avoid overcomplicating it with too many keywords, which could lead to confusion and shift focus away from what’s essential. Although I lack empirical data, my instinct tells me that 5 to 8 keywords should suffice for a clear company DNA. What do you think?
