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The Alternative Board Blog

Know External Forces Influencing Your Company Culture

Mar. 12, 2025 | Posted by Lee Polevoi

Many internal factors go into building and maintaining a successful business—and by extension, a business culture. Many external forces are always at work, too. Business leaders can’t afford to focus solely on what’s shaping their company culture from within. It’s equally important to recognize forces beyond the workplace influencing that culture.

Effective leadership devises strategies to cope with the effect of external factors, ranging from artificial intelligence to shifts in customer behavior and the political environment. These forces can’t be ignored, even when they remain stubbornly beyond a CEO or business owner’s control.

Staying informed about what’s happening in (and beyond) your industry has never been more critical. As we have noted before, “Making a list of the potential threats ensures that you can have a contingency plan in place should things go awry.”

External forces with the potential to alter a company’s culture include:

Technology

Like it or not, advances in technology continue to deeply impact culture and ways of doing business. AI and other innovations can reduce the need for labor, while other new technology can sway customers’ buying journeys and levels of retention. Even the option for employees to work remotely—possible only because of advanced communications and digital technology—affects the inner workings of a company’s culture.

Technology plays a key role in promoting teamwork and collaboration, pillar stones of modern business culture. Tools like cloud-based platforms and advanced communications apps “enable employees to collaborate seamlessly with colleagues, regardless of their physical location,” notes Charitable Advisors. Other such features, such as “real-time document editing, video conferencing, and instant messaging facilitate better communications, teamwork, and information sharing among employees.”

Employment engagement is another critical element in a thriving business culture. Technological tools like employee surveys and online performance reviews enable companies to highlight recognition, learning, and development—essential components of successful employee retention.

Competitors

The actions your competitors take can directly affect your culture. If you haven’t done so already, now is a good time to devote time and resources to monitoring competitors’ behavior (as displayed through their website and social media) so as to stay aware of changing trends in both production and customer acquisition.

According to Mageplaza Blog, “Analyzing competitors’ strengths, weaknesses, market share, pricing, and products helps identify opportunities for differentiation and innovation”—key elements in boosting growth, productivity, and a healthier culture. This knowledge “allows companies to adapt and stay competitive.”

Suppliers 

Many businesses rely upon third-party suppliers or providers for the success of their business. Obviously, it’s not possible for a business to determine supplier behavior and operations. We all know that disruptions in the supply chain can adversely influence a company’s growth strategy, prompting executives to consider changes in workforce or other aspects of business. Any such changes can affect employee morale and the overall culture.

Politics and governmental regulations

Local, national, and international politics are always in flux, as evidenced by the most recent presidential election. Changes in tariff policies, regulatory actions, employment law, and intellectual property guidelines all have the potential to boost or reduce a company’s revenue stream and, by extension, its culture.

As noted, businesses have little say in how external factors play out in the global marketplace. The best defense is to maintain awareness of these forces, and even to plan ahead in an effort to diminish any negative effects on business growth. Awareness is crucial, and no CEO or business owner can afford to “look the other way” when these forces are in play.

Learn more about strengthening your company culture by downloading this free TAB white paper, “Improve Your Company Culture Today.”

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Written by Lee Polevoi

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