Put simply, your firm’s culture is the way it does business every day. It’s the practical expression of your firm’s values, its core drivers, and the beliefs your people hold about the nature and value of their work. It defines how you relate to each other and to your clients.

Your architecture or engineering firm's culture is so much a part of your daily life that you may have trouble describing it. It might be more visible to people outside the firm than it is to you.

Your culture must be consistent with your purpose if you are to achieve your objectives. For instance: Most principals want their firms to grow, but many exercise so much control over so many areas that they inhibit their people from taking the very actions necessary to create growth.

THE KEY TO CULTURE: Control vs. Empowerment
Most firms lean toward having either a culture of empowerment or a culture of control. Empowering firms seem to achieve the highest sustainable levels of rapid growth.

In an empowering culture, all individuals know that they directly influence the success of the company. Information, including financial information, is shared widely; people understand the big picture and their role in it. They have the freedom and the authority to act to achieve their objectives, and they expect to be held accountable. In the most empowering firms, employees have an ownership stake.

Several measurable and easily-monitored traits determine whether firms are empowering or controlling. Most firms are probably somewhere between the two extremes.

Here’s a guarantee. If a controlling firm acquires an empowering firm, most of the seller’s smartest people will want out within a few months. If an empowering firm acquires a controlling firm, the seller’s people will spend several months in total confusion. In such a case, you’ll have to accomplish a complete cultural turnaround before the arrangement can succeed.

Here are some ways to determine where your firm falls on the empowerment vs. control scale:

1. OPENNESS OF FINANCIAL INFORMATION

Empower: Staff members know financial results; each person understands how he or she contributes to profitability.

Control: Only the owner knows how the firm is doing.

2. RECOGNITION

Empower:  Rewards are given frequently and publicly, achievements are celebrated, people understand what behavior is being recognized.

Control:  Recognition is less frequent, often secret, and may seem arbitrary.

3. OWNERSHIP

Empower: All people are encouraged to become owners.

Control: Owners control large shares, prohibit others from owning until they have "earned" it.

4. IDEAS PROCESSED

Empower: Everyone creates new ideas, participates in strategic planning.

Control: Ideas come from the top; only partners do planning.

5. WHAT THE PRINCIPALS DO

Empower: Principals concentrate on leadership responsibilities, with little project involvement.

Control: Principals are involved in everything.

6. FUN VS. WORK

Empower: People have fun, party; the atmosphere is dynamic.

Control: The atmosphere is serious; the focus is on productivity alone.

7. INTOLERANCE OF NON-PERFORMERS

Empower: People have high expectations of themselves and others; peer pressure on non-performers is immense; they leave quickly.

Control:  Non-performers last a long time; the boss makes all the personnel decisions and may be unaware of the situation.

You can check out more ways to evaluate your firm’s culture in PSMJ’s "just-released" Navigate the Hurdles to M&A Success: The Ultimate A/E Mergers & Acquisitions Manual  with hundreds of pages of insights and advice, backed up by innovative thinking that only the successful PSMJ advisers can make. PLUS, you get dozens of tables, charts, worksheets, and templates to get on track for success!