Do you have a company or business, need to define good business practices and don’t know where to start? We will help you step by step to create a successful business philosophy.
Before we get into the subject, we need to define what is a corporate philosophy And in reality, it is nothing more than the pillar by which your company will be governed to achieve its business objectives.
This is the same pillar that will help you have a good relationship with your customers and that will also set the tone for the environment, culture and values of the company.
Why is it necessary to define a business philosophy?
Each company has its processes, systems and methodologies. It does not matter if we are talking about a large company with thousands of employees, or a small or medium-sized company.
The company philosophy is nothing more than the personality of the company; the same one that will determine the beliefs that will guide its workers in the development of their functions, activities and assignments.
Undoubtedly, one of the great advantages of having a defined philosophy is that it will help you improve relationships between your employees and customers, and this will translate into more sales for your business.
Steps to create a company philosophy
Now that you know the importance of having a well-defined philosophy, we will explain the step by step so that you can work on your company:
1. Research other companies
If you don’t know where to start, a good place to start is to research what other companies in your niche are doing so you can figure out how they defined their own philosophies.
Try to find profitable companies that you identify with so that you can adopt certain practices that have already led to their success.
2. Ask yourself philosophical questions.
According to one publication of Indeed, This is one of the most useful steps when creating a corporate philosophy.
For example, you could ask how your company’s principles are related to its internal management, or to the socio-productive development of your industry.
3. Establish the mission
What is the nature of your business? The answer to this question is what will determine the mission of your company.
This mission encompasses the objective or purpose of your company. It serves its main reason for being and it is more important than you can imagine.
4. Define the vision
What do you want to become in the future? That is what will determine the vision of your company. It will also guide your team in achieving the goals established from the beginning.
The vision of the company must be anchored to fully measurable and achievable objectives. Also, it must be aligned with your own mission.
5. Determine your company values
What do you believe in? Values are the essence of your company and can reflect different aspects, such as transparency, optimism, efficiency, innovation, etc.
The values define the way in which your company operates, as well as the interactions that are generated between all its members and teams.
In general, you should choose approximately five values to define your company’s identity.
6. Write the principles of your philosophy
The principles of a company philosophy must be aligned with its mission and values. When creating them try be concise and always keep in mind the objective of your company.
For example, if your goal is to generate sales, the philosophy cannot be linked to altruism.
7. Write the code of ethics
This document seeks to reinforce the principles you have already defined. The code of ethics will specify, in detail, the type of behavior expected of employees. You must include:
- Channels to communicate doubts or complaints.
- Disciplinary measures for breach of the code.
- Guidelines for making decisions. That way your employees will know how to act in certain situations.
8. Talk to your team
It is important that you hold meetings with your work team and communicate the vision of the company, as well as the values that represent them.
These meetings will help you get to know them better. Specifically, you will know if they are aligned with what you want to achieve with your company in the short, medium and long term.
But you must also listen and respect their voices. Do not doubt it for a second: your employees can contribute a lot to the growth of your company. Listen to them!
9. Have a team aligned
Once you have defined the values of your company, and have communicated them to your team, you will have to evaluate who are the members who are not aligned with your philosophy. (But try to be objective on this point.)
It is useless to have an employee who is very efficient in his work assignments, if he finds it difficult to work as a team or is not in tune with the mission, vision and values of the company.
10. Communicate your philosophy actively
You must have your company philosophy in visible places. It is essential that all workers keep it in mind during the time they are part of your workforce.
It must also be visible to the general public. In this sense, you should publish it on your website and in other dissemination channels in which you have a presence.
Characteristics of a corporate philosophy
In order for you to develop your business philosophy well, you must define its mvision and values, since these elements serve as great business foundations.
But you should also take into account the following characteristics:
Must be goal focused
Specifically, it should be focused on the business objectives of the company. In fact, it should be defined based on those goals.
For example, if your company’s goal is to sell $100,000 a year, your philosophy should be linked to the actions, tactics, and strategies that will allow you to achieve that goal.
There are many external factors that can affect the performance of your business in unexpected ways. A clear example of that was the arrival of the pandemic.
This is why your business philosophy must be attentive to changes and new trends so as not to lose competitiveness or relevance.
On the other hand, it should be noted that you can change it when necessary in order to successfully achieve your goals.
Must generate empathy
A company philosophy must have elements that cause liking, closeness and empathy with its customers, suppliers, employees and the general public.
This will not only help you connect with those customers who really need your products or services, but will also allow you to boost your company’s competitiveness in the medium and long term. In addition, it will help you attract more investors.
Another of the characteristics that you must keep in mind is that the philosophy must be clear and precise. It has to be easy to understand and it must also convey the essence of the company in a concrete and summarized way.
Remember that your business philosophy should be within everyone’s reach. Therefore, it is important that it is visible on your website, in your social networks and in other dissemination channels.
Examples of successful company philosophies
Below we will present the corporate philosophy of major brands. Use them to inspire you when creating your company:
The philosophy of Manzana it’s based on “leave the world better than we found it”. And with respect to its employees, Steve Jobs’s company strongly believes in inclusion.
It is one of the most prestigious brands in the automotive industry and its philosophy is based on its customers and the environment.
samsung It is part of one of the largest electro-technological business groups on the planet and its business philosophy is very simple and direct:
¨Dedicate their talent and technology to create superior products and services that contribute to a better global society. To achieve this, it places a high value on its people and technologies.”
The company is governed by the same values and principles globally. The most relevant are its focus on customers, respect for all its employees and the sale of products that are worthy of pride.
His philosophy is based on kindness and respect for others under the premise of “create a better world”.
Develop a high-impact company philosophy
Developing a high-impact company philosophy is more important than you might imagine. Therefore, you should not take this task lightly.
On the contrary, invest all the time necessary so that the final result not only surprises you, but also makes a real impact on your company and its own employees.
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