Organizational Culture and Why We Need It

Dr Rick Goodman
5 min readJun 8, 2022


Organizational Culture and why we need it is a question I get asked often as an executive coach. Let’s examine why it’s so important and how it benefits your employees and your customers.

The definition of organizational culture is best summarized this way. It is the combination of beliefs, assumptions, values, and habits that make up the environment of your workplace. And if that sounds like a mouthful, maybe think of it this way: Organizational culture just refers to the way people in your business interact with one another, and with the customer.

Organizational culture is a part of every business , whether you’re aware of it or

not. What that means is that all businesses have a choice: Either you can actively define your organizational culture, building a set of values and customs, or you can just allow your culture to happen haphazardly. If you choose the second option, don’t be surprised if your organizational culture turns out to be weak, ineffective, or even toxic.

That’s the basic organizational culture definition, but what does all of this mean practically? How can organizational culture impact your bottom line? What good should your organizational culture do you? That’s what I’m going to address here.

Types of Organizational Culture

The first thing we’ll need to consider is the basic types of organizational culture. No two businesses have quite the same culture because neither are made up of the same people! Your people ultimately make your culture unique.

With that said, there are certainly some basic types of organizational cultures. These are some of the most common ones:

The clan

Clan cultures are all about collaborative work. Basically, in a clan culture, all your employees view

themselves as part of a big family; everyone is united by the same sense of purpose, and they work together to achieve the same ends. Clan cultures are bound together by the values of teamwork and open communication. Leadership happens through…



Dr Rick Goodman

Leadership Expert at | Author The Solutions Oriented Leader | Motivational Keynote Speaker | Executive Coach, Life Coach, Team Building,