Most promoters talk about growth in terms of numbers – revenue, margins, capacity, market share. But very few pause to ask a more fundamental question:
Why do two companies with similar products, markets, and salaries perform very differently?
The answer, more often than not, lies in organizational culture. Yet in many growing businesses, culture is still treated as an HR responsibility, something to be handled through policies, hiring processes, or annual engagement activities. This belief is not just incorrect; it is expensive.
Because culture is not created by HR.
Culture is created by promoters and leaders – every single day.
These insights emerged during a Saarthi leadership workshop facilitated by Anupama Sultania, where promoters and senior leaders explored how organizational culture directly influences performance, retention, and long-term growth.
Organizational Culture: Not a Soft Concept, but a Business Reality
Organizational culture is often misunderstood as something intangible or emotional. In reality, it is very practical. Culture is simply “how work gets done when no one is watching.”
It influences:
- Decision-making speed
- Ownership and accountability
- Employee engagement
- Customer experience
- Long-term business performance
Strong company culture does not replace strategy – it strengthens execution.
This is why culture has become a competitive advantage, especially for SMEs where people play multiple roles and leadership visibility is high.
Why Culture Cannot Be Delegated to HR
HR plays a critical role in systems, processes, and people practices. But culture is shaped by leadership behaviour, not HR documentation.
Employees observe:
- How promoters respond under pressure
- Whether commitments are honoured
- How mistakes are handled
- How results and relationships are balanced
These everyday signals define company culture far more than any handbook.
That is why culture ownership always sits with the promoter, founder, or leadership team, not the HR department alone.
“Culture is not about what is written on the wall. It is about what people experience every day while working with their leaders.” – Anupama Sultania
Culture as a Strategic HR Lever for Business Growth
Globally and in India, companies that align HR strategy with business strategy outperform those that treat HR as a support function.
Well-known examples reinforce this:
- Innovation-driven cultures fuel sustainable growth
- Learning-oriented cultures enable scale
- Values-led cultures build trust and longevity
These principles are not limited to large corporations. When applied thoughtfully, SMEs benefit even more because culture directly impacts productivity, retention, and leadership bandwidth.
A Practical Example: Culture Transformation in a Surat Textile Business
A family-owned textile business in Surat had strong machinery, stable demand, and competitive compensation.
Yet the organization struggled with high employee turnover and declining productivity.
The issue was not capability. It was cultural disconnect.
What Changed
Leadership initiated a few focused actions:
- Defined a clear purpose that connected individual roles to collective impact
- Introduced short daily communication rituals to improve transparency and recognition
- Created skill-based growth pathways supported by training and peer mentoring
The Outcome
Within a year:
- Employee retention improved
- Engagement increased
- Productivity stabilized
- Team ownership strengthened
No dramatic restructuring. Just intentional culture design aligned with business goals.
Four Culture Myths That Limit SME Growth
Myth 1: Culture Is HR’s Responsibility
Culture flows from leadership behaviour. HR can support, but promoters must lead.
Myth 2: Culture Is About Relationships, Not Results
High-performance cultures balance results and relationships. One without the other creates either burnout or complacency.
Myth 3: “We Are Too Small to Think About Culture”
Early-stage culture determines scalability. If leadership doesn’t shape culture intentionally, it forms randomly often in unhealthy ways.
Myth 4: Culture Can’t Be Measured
Culture reflects clearly in:
- Attrition and retention rates
- Employee engagement levels
- Productivity trends
- Customer feedback
- Leadership effectiveness
If it affects performance, it can be assessed.
Why Strong Company Culture Becomes a Competitive Advantage
In today’s business environment:
- Skilled talent is scarce
- Replacement costs are rising
- Loyalty must be earned
Organizations with strong cultures experience:
- Higher employee engagement
- Lower attrition
- Faster execution
- Better customer alignment
- Sustainable revenue growth
This is why organizational culture is no longer optional, it is a core part of business strategy.
The Promoter’s Role in Shaping Culture
Promoters influence culture through:
- Daily decisions
- Communication patterns
- Recognition behaviour
- Conflict resolution
- Alignment between words and actions
Culture does not require grand announcements. It requires consistent leadership discipline. When leaders lead with clarity, empathy, and accountability, culture strengthens naturally and so does performance.
Culture Is a Leadership Asset, Not an HR Activity
Culture determines how effectively strategy is executed. It shapes how teams respond to change, pressure, and growth.
Promoters who view culture as a leadership responsibility not an HR task unlock a powerful advantage that competitors cannot easily replicate.
Because people don’t scale systems, culture scales people.
Start the Right Conversation
At Stratefix, we work with promoters and leadership teams to help them understand, assess, and strengthen organizational culture in alignment with business objectives.
As emphasized during the Saarthi workshop facilitated by Anupama Sultania, clarity around culture often becomes the turning point between intent and execution in growing businesses.
If you believe your business has untapped potential within its people, it may be time to step back and reflect on the culture being created every day.
Sometimes, real growth doesn’t begin with expansion. It begins with clarity, leadership, and culture.
Let’s start that conversation.
