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Fundamentals

Consider the local bakery, a quintessential SMB. Its aroma of fresh bread and convivial chatter defines its atmosphere. This sensory experience, while seemingly intangible, forms the bedrock of its cultural values. Ignoring this, SMBs often overlook the quantifiable nature of their culture, dismissing it as ‘just how things are done around here.’ This casual dismissal represents a missed opportunity.

Culture, far from being an amorphous concept, influences everything from customer loyalty to employee retention. Therefore, measuring it authentically becomes less about chasing abstract ideals and more about understanding the tangible drivers of a successful, sustainable business.

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Deciphering Cultural Values in Concrete Terms

Cultural values, at their core, are the guiding principles that dictate behavior and decision-making within a business. For an SMB, these values are frequently unwritten, deeply ingrained in the daily operations, and reflected in the actions of the owner and early employees. To measure them authentically, SMBs must first translate these abstract values into observable behaviors and tangible metrics. This translation process moves cultural assessment from the realm of subjective feelings to objective evaluation.

Authentic measurement of cultural values for SMBs begins with defining those values in terms of observable behaviors and measurable outcomes.

Start by identifying the values you believe are central to your SMB. Honesty, teamwork, customer service, innovation ● these are common starting points. However, generic value statements are insufficient. For each value, ask ● What does this look like in practice?

How do we know when we are living this value? For instance, ‘customer service’ might translate into ‘responding to customer inquiries within one hour’ or ‘proactively seeking after every transaction.’ ‘Teamwork’ could become ‘cross-departmental collaboration on at least one project per quarter’ or ‘peer recognition program with monthly awards.’ By converting values into specific, actionable behaviors, you create a framework for measurement.

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Simple Tools for Direct Observation

For SMBs, sophisticated, expensive cultural audits are often impractical and unnecessary. Authentic measurement can begin with simple, direct observation. Owners and managers, deeply embedded in the daily workings of the business, possess a wealth of anecdotal data. The key is to structure this observation and move beyond gut feelings to systematic assessment.

Consider these practical methods:

  • Walk-Arounds and Check-Ins ● Regularly spend time observing daily operations. Are employees interacting respectfully? Is there a sense of urgency or complacency? Are processes being followed? Informal conversations can reveal underlying attitudes and beliefs. These check-ins are not about micromanagement, but about gaining a firsthand understanding of the lived culture.
  • Meeting Observation ● Meetings are microcosms of organizational culture. Observe how decisions are made, how disagreements are handled, and who dominates the conversation. Is there open dialogue, or is it a top-down directive? Are diverse perspectives valued, or are dissenting opinions silenced? Meeting dynamics provide valuable clues about communication styles and power structures.
  • Customer Interactions ● Observe how employees interact with customers. Are they friendly and helpful? Do they go the extra mile? Customer feedback, both positive and negative, is a direct reflection of the customer-facing culture. Pay attention to online reviews, social media comments, and direct customer feedback channels.

These methods, while seemingly basic, offer rich qualitative data. Document your observations. Keep a journal or use a simple spreadsheet to track recurring themes and patterns. Over time, this direct observation will reveal consistent behaviors that reflect your actual cultural values, as opposed to your aspirational ones.

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Leveraging Existing Data Points

SMBs already generate a significant amount of data in their daily operations. This data, often overlooked for cultural measurement, can provide objective insights into how values are manifested in practice. The trick is to identify the data points that are relevant to your defined cultural values and analyze them systematically.

Here are examples of readily available data points and how they can be used:

  1. Employee Turnover Rates ● High turnover, especially in specific departments or roles, can signal cultural misalignment. Analyze exit interviews (even informal ones) for recurring themes related to culture, management style, or work environment. Low turnover, conversely, may indicate a positive cultural fit.
  2. Customer Satisfaction Scores (CSAT) and Net Promoter Scores (NPS) ● Consistently low scores might point to a disconnect between espoused values (e.g., customer-centricity) and actual customer experience. Analyze customer comments and feedback for cultural cues. Do customers praise friendly service or complain about unhelpful staff?
  3. Absenteeism and Sick Leave ● Unusually high rates could be symptoms of a disengaged or stressed workforce, potentially reflecting a culture of burnout or poor work-life balance. Investigate the reasons behind absenteeism. Are there underlying cultural issues contributing to employee stress or dissatisfaction?
  4. Internal Communication Patterns ● Analyze the tone and frequency of internal emails, memos, and meeting minutes. Is communication open and transparent, or is it guarded and hierarchical? Are employees encouraged to share ideas and feedback, or is there a culture of silence?

These data points provide quantitative measures that complement qualitative observations. By tracking these metrics over time and looking for correlations and trends, SMBs can gain a more data-driven understanding of their cultural strengths and weaknesses.

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The Power of Simple Surveys

While complex employee surveys might seem daunting, SMBs can effectively use short, targeted surveys to gauge employee perceptions of cultural values. The key is to keep surveys brief, focused, and actionable. Avoid lengthy questionnaires that employees are unlikely to complete thoughtfully. Instead, opt for pulse surveys with a few key questions related to your defined cultural values.

Example survey questions aligned with specific values:

Value Teamwork
Survey Question "On a scale of 1 to 5, how effectively do you believe teams collaborate in our company?"
Measurement Focus Perception of team collaboration effectiveness
Value Customer Focus
Survey Question "Do you feel empowered to resolve customer issues effectively? (Yes/No)"
Measurement Focus Employee empowerment in customer service
Value Innovation
Survey Question "Are you encouraged to share new ideas and suggestions? (Yes/No)"
Measurement Focus Culture of idea sharing and openness to innovation
Value Integrity
Survey Question "Have you witnessed any behavior in the past month that you believe violates our company's ethical standards? (Yes/No)"
Measurement Focus Perception of ethical behavior and integrity

Keep surveys anonymous to encourage honest feedback. Analyze survey results for trends and patterns. Follow up on concerning findings with further investigation, such as focus groups or individual conversations. Surveys, when used strategically, provide a valuable snapshot of employee sentiment and cultural alignment.

Simple, frequent pulse surveys focused on specific cultural values offer SMBs a practical and cost-effective way to gather employee feedback.

Measuring cultural values authentically in SMBs is not about complex methodologies or expensive consultants. It is about adopting a systematic approach to observing, documenting, and analyzing the behaviors and data that already exist within the business. By translating abstract values into concrete terms and using simple, practical tools, SMBs can gain a genuine understanding of their culture and its impact on their success. This foundational understanding sets the stage for more as the business grows.

Intermediate

Consider the ambitious tech startup, rapidly scaling its operations. Its initial, almost familial culture, fostered in a small garage, now faces the strain of expansion. Informal communication channels become bottlenecks, and the once-shared understanding of ‘how we do things’ begins to fragment.

This inflection point highlights a critical challenge for growing SMBs ● maintaining cultural authenticity while adapting to increased complexity. Measuring cultural values moves beyond simple observation to strategic assessment and proactive management.

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Moving Beyond Anecdotes ● Structured Qualitative Assessments

As SMBs grow, relying solely on anecdotal observations becomes insufficient. A more structured approach to qualitative assessment is needed to capture the depth and complexity of cultural values. This involves employing methodologies that systematically gather and analyze qualitative data, providing richer insights than casual observations alone.

Explore these structured qualitative methods:

  • Focus Groups ● Facilitated discussions with small groups of employees from different departments or levels can uncover shared perceptions, values conflicts, and cultural nuances. Use open-ended questions to encourage participants to share their experiences and perspectives on the company culture. Analyze transcripts for recurring themes and patterns.
  • In-Depth Interviews ● One-on-one conversations with employees, managers, and even key customers can provide deeper, more personal insights into cultural values. Target individuals who represent different perspectives or have unique experiences within the organization. Use a semi-structured interview format, allowing for flexibility while ensuring key areas are covered.
  • Critical Incident Technique ● This method focuses on gathering stories about specific events that exemplify or contradict the company’s stated values. Ask employees to describe situations where the company culture was clearly demonstrated, either positively or negatively. Analyze these ‘critical incidents’ to identify underlying cultural norms and expectations.

These methods provide a more rigorous way to collect qualitative data. Ensure trained facilitators or interviewers conduct these sessions to minimize bias and maximize the quality of information gathered. The analysis of requires careful attention to detail and a systematic approach to identify meaningful patterns and insights.

Structured qualitative assessments, such as focus groups and in-depth interviews, offer SMBs a deeper understanding of their cultural values beyond surface-level observations.

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Quantitative Metrics with Cultural Depth

While qualitative data provides rich context, quantitative metrics offer scalability and comparability. However, for intermediate-level cultural measurement, simply tracking basic metrics like turnover is not enough. The focus shifts to developing quantitative measures that capture the nuances of cultural values and their impact on business outcomes.

Consider these enhanced quantitative metrics:

  1. Culture-Aligned KPIs ● Develop (KPIs) that directly reflect your defined cultural values. For example, if ‘innovation’ is a core value, track the number of employee-generated ideas implemented, the percentage of revenue from new products or services, or the time-to-market for innovative solutions. These KPIs provide a direct link between cultural values and business performance.
  2. Employee Net Promoter Score (eNPS) ● While NPS is typically used for customer satisfaction, eNPS measures employee loyalty and advocacy. Ask employees, “How likely are you to recommend our company as a place to work?” on a scale of 0 to 10. A high eNPS indicates a strong, positive culture that employees are proud to be part of. Track eNPS over time and compare it across departments or teams.
  3. Values-Based Recognition Data ● Analyze data from employee recognition programs to understand which values are being most frequently recognized and rewarded. If your recognition program is tied to specific values, track which values receive the most nominations or awards. This data reveals which values are truly being lived and reinforced within the organization.
  4. 360-Degree Feedback ● Implement 360-degree feedback processes that assess employees not only on performance but also on their alignment with company values. Include questions that evaluate behaviors related to teamwork, customer service, integrity, and other core values. This provides a multi-faceted view of how employees are embodying the desired culture.

These enhanced quantitative metrics provide a more sophisticated and value-driven approach to cultural measurement. Ensure that these metrics are regularly tracked, analyzed, and reported to provide ongoing insights into cultural performance and areas for improvement.

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Technology for Streamlined Measurement

As SMBs scale, automation becomes crucial for efficient cultural measurement. Technology offers tools to streamline data collection, analysis, and reporting, making it easier to track cultural values consistently and at scale. While sophisticated HR tech platforms exist, SMBs can leverage simpler, cost-effective solutions.

Explore these technology-enabled approaches:

  • Online Survey Platforms ● Platforms like SurveyMonkey or Google Forms simplify the creation and distribution of pulse surveys and more comprehensive employee surveys. Automate survey distribution schedules and data collection. Utilize built-in analytics features to visualize survey results and identify trends.
  • Employee Feedback Platforms ● Dedicated feedback platforms, even basic ones, can facilitate continuous feedback collection. Implement anonymous feedback channels for employees to share concerns, suggestions, or recognition. Use (NLP) tools (if available or affordable) to analyze feedback for sentiment and recurring themes.
  • HRIS with Analytics Capabilities ● If your SMB uses a Human Resources Information System (HRIS), explore its analytics capabilities. Many HRIS platforms offer reporting features that can track turnover, absenteeism, and other relevant metrics. Customize reports to focus on culture-related data and trends.
  • Social Listening Tools ● Monitor social media channels and online reviews for mentions of your company culture. tools can track sentiment and identify public perceptions of your values. This provides an external perspective on your culture and brand reputation.

Technology enhances the efficiency and scalability of cultural measurement. Select tools that align with your SMB’s budget and technical capabilities. Focus on solutions that provide actionable data and insights, rather than simply collecting data for data’s sake.

Technology empowers SMBs to streamline through automated surveys, feedback platforms, and data analytics, enabling more efficient and scalable tracking of cultural values.

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Integrating Culture into Performance Management

Authentic cultural measurement is not a standalone exercise. To be truly effective, it must be integrated into core business processes, particularly performance management. This integration ensures that cultural values are not just espoused but actively reinforced and rewarded within the organization.

Strategies for integrating culture into performance management:

  1. Values-Based Performance Goals ● Incorporate cultural values into individual and team performance goals. Set objectives that require employees to demonstrate specific behaviors aligned with core values. For example, a sales team goal could include not only revenue targets but also metrics reflecting a ‘customer-centric’ value.
  2. Cultural Competencies in Performance Reviews ● Include cultural competencies in performance review frameworks. Evaluate employees not only on their technical skills and task completion but also on how well they embody company values in their daily work. Provide specific examples of behaviors that demonstrate values alignment or misalignment.
  3. Values-Based Recognition and Rewards ● Align recognition and reward programs with cultural values. Publicly recognize and reward employees who exemplify core values in their actions and contributions. Make values-based recognition a regular and visible part of the company culture.
  4. Leadership Modeling and Accountability ● Hold leaders accountable for embodying and promoting company values. Leaders set the tone for the culture. Ensure they are not only talking about values but actively demonstrating them in their own behavior and decision-making. Include values-based leadership competencies in leadership development programs and performance evaluations.

Integrating culture into creates a system of accountability and reinforcement. It signals to employees that cultural values are not just words on a wall but are genuinely valued and expected behaviors. This integration is essential for embedding cultural values deeply within the organizational fabric.

Moving to an intermediate level of cultural measurement requires SMBs to adopt more structured and sophisticated approaches. By combining structured qualitative assessments with enhanced quantitative metrics, leveraging technology for efficiency, and integrating culture into performance management, SMBs can gain a more nuanced and strategic understanding of their cultural values and their impact on business success. This deeper understanding prepares the SMB for advanced cultural strategies as it continues to grow and evolve.

Advanced

Consider the multinational corporation, a sprawling entity operating across diverse geographical locations and cultural landscapes. Its initial SMB-like culture, perhaps rooted in founder-led innovation, now confronts the complexities of global operations, mergers, and acquisitions. Cultural values, once organically shared, become fragmented and potentially diluted across disparate business units. For such organizations, authentic cultural measurement transcends internal assessments and integrates with strategic business objectives, driving competitive advantage and sustainable growth in a complex, globalized world.

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Multi-Dimensional Cultural Frameworks ● Beyond Simple Values Lists

At an advanced level, measuring cultural values demands frameworks that move beyond simplistic lists of values. These frameworks must capture the multi-dimensional nature of organizational culture, acknowledging its complexity and influence across various organizational levels and functions. These frameworks provide a structured lens for analyzing culture in its entirety, not just isolated components.

Explore sophisticated cultural frameworks:

These frameworks offer a more nuanced and comprehensive understanding of organizational culture. Selecting the appropriate framework depends on the SMB’s specific context, industry, and strategic objectives. The application of these frameworks requires rigorous data collection and analysis to generate meaningful and actionable insights.

Advanced cultural measurement utilizes multi-dimensional frameworks like Hofstede’s, CVF, and Denison’s models to analyze organizational culture in its full complexity, moving beyond simple value statements.

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Advanced Quantitative Methods ● Statistical Rigor and Predictive Analytics

Advanced cultural measurement leverages sophisticated quantitative methods to move beyond descriptive statistics and towards predictive analytics. This involves employing statistical rigor to analyze cultural data, identify correlations, and predict the impact of culture on future business outcomes. This level of analysis requires expertise in data science and statistical modeling.

Explore advanced quantitative approaches:

  1. Regression Analysis ● Use regression analysis to model the relationship between cultural metrics (e.g., eNPS, values-based KPI scores) and business outcomes (e.g., revenue growth, customer retention, innovation rate). This allows SMBs to quantify the impact of specific cultural dimensions on key performance indicators and prioritize cultural initiatives that drive the greatest business impact. Regression models can also identify mediating or moderating factors that influence the culture-performance relationship.
  2. Structural Equation Modeling (SEM) ● SEM allows for the testing of complex relationships between multiple cultural constructs and business outcomes simultaneously. For example, SEM can be used to model the interconnectedness of different cultural dimensions (e.g., adaptability and innovation) and their combined effect on organizational performance. SEM provides a more holistic and nuanced understanding of the cultural ecosystem and its impact on business results. (Kline, 2015)
  3. Predictive Analytics and Machine Learning ● Utilize machine learning algorithms to analyze large datasets of cultural and business data to identify patterns and predict future trends. For example, machine learning can be used to predict employee turnover based on cultural indicators, identify employees at risk of disengagement, or forecast the impact of cultural changes on future performance. enables proactive cultural management and intervention. (Provost & Fawcett, 2013)
  4. Social Network Analysis (SNA) ● Apply SNA to map communication patterns and relationships within the organization. Analyze network density, centrality, and brokerage to understand how information and influence flow through the organization. SNA can reveal informal cultural networks, identify cultural influencers, and pinpoint communication bottlenecks or silos. This provides insights into the social dynamics that shape organizational culture. (Wasserman & Faust, 1994)

These advanced quantitative methods require specialized expertise and software tools. SMBs may need to partner with data scientists or consultants to implement these approaches effectively. The investment in advanced quantitative analysis can yield significant returns by providing data-driven insights for strategic cultural management and optimization.

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Integrating Cultural Measurement with Automation and AI

At the advanced stage, cultural measurement becomes deeply integrated with automation and Artificial Intelligence (AI). AI-powered tools can automate data collection, analysis, and reporting, providing real-time cultural insights and enabling proactive cultural management at scale. This integration is crucial for large, complex SMBs operating in dynamic environments.

Explore AI and automation in cultural measurement:

  • AI-Powered Sentiment Analysis ● Utilize AI-powered natural language processing (NLP) to analyze from surveys, open-ended comments, and internal communication channels in real-time. Sentiment analysis can automatically detect shifts in employee morale, identify emerging cultural issues, and flag areas requiring immediate attention. This provides continuous monitoring of cultural sentiment and enables proactive intervention.
  • Automated Culture Dashboards ● Develop real-time culture dashboards that aggregate data from various sources ● surveys, feedback platforms, HRIS, social listening ● and visualize key cultural metrics and trends. Automated dashboards provide leaders with a continuous overview of cultural health, enabling data-driven decision-making and proactive cultural management. Dashboards can be customized to track specific cultural dimensions or KPIs relevant to strategic objectives.
  • AI-Driven Cultural Insights and Recommendations ● Leverage AI algorithms to analyze cultural data and generate actionable insights and recommendations for cultural improvement. AI can identify patterns and correlations that humans might miss, suggest targeted interventions to address cultural issues, and predict the potential impact of cultural changes. This moves cultural measurement from descriptive reporting to prescriptive guidance.
  • Chatbots for Continuous Cultural Feedback ● Deploy AI-powered chatbots to engage employees in ongoing dialogues about culture. Chatbots can proactively solicit feedback, answer employee questions about cultural values, and provide personalized cultural resources. This creates a continuous feedback loop and fosters a culture of open communication and engagement.

Integrating AI and automation transforms cultural measurement from a periodic exercise to a continuous, data-driven process. This enables SMBs to monitor cultural health in real-time, proactively address emerging issues, and optimize culture for strategic advantage. However, ethical considerations and data privacy must be carefully addressed when implementing AI-powered cultural measurement tools.

Advanced cultural measurement integrates automation and AI to enable real-time data collection, analysis, and reporting, providing continuous cultural insights and proactive management capabilities.

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Culture as a Strategic Asset ● Linking Measurement to Business Strategy

At the highest level, cultural measurement is not merely about understanding the current culture but about strategically shaping it to drive business objectives. Culture becomes recognized as a strategic asset, and cultural measurement is directly linked to the formulation and execution of business strategy. This requires a strategic and forward-thinking approach to cultural management.

Strategies for leveraging culture as a strategic asset:

  1. Culture-Strategy Alignment Frameworks ● Utilize frameworks that explicitly link cultural values to strategic objectives. For example, the ‘Culture Map’ by Erin Meyer (2014) provides a framework for understanding cultural differences and aligning culture with global business strategies. These frameworks help SMBs identify cultural strengths that can support strategic goals and cultural gaps that need to be addressed to enable strategic success.
  2. Cultural Due Diligence in Mergers and Acquisitions ● Incorporate cultural assessments into the due diligence process for mergers and acquisitions. Evaluate the cultural compatibility of target companies and identify potential cultural integration challenges. Proactive minimizes post-merger integration risks and maximizes the value creation potential of acquisitions. (Marks & Mirvis, 2011)
  3. Culture-Driven Innovation Strategies ● Design innovation strategies that leverage specific cultural dimensions. For example, a culture high in ‘adaptability’ and ‘adhocracy’ (using the CVF) is more conducive to radical innovation, while a culture high in ‘consistency’ and ‘hierarchy’ might be better suited for incremental innovation. Aligning innovation strategies with cultural strengths maximizes the effectiveness of innovation initiatives.
  4. Cultural Transformation for Strategic Change ● Utilize cultural measurement to guide and monitor initiatives aimed at supporting strategic change. If a strategic shift requires a change in organizational culture, use cultural assessments to identify the desired cultural state, track progress towards cultural transformation, and measure the impact of cultural changes on strategic outcomes. Cultural transformation becomes a strategic enabler of organizational change. (Schein, 2010)

At this advanced level, cultural measurement becomes an integral part of strategic management. Culture is no longer viewed as a static entity but as a dynamic and malleable asset that can be strategically shaped and leveraged to achieve business objectives. This strategic approach to culture requires leadership commitment, data-driven insights, and a long-term perspective.

At the advanced level, cultural measurement is strategically integrated with business objectives, transforming culture into a dynamic asset that drives competitive advantage and sustainable growth.

Reaching an advanced level of cultural measurement requires SMBs to adopt sophisticated frameworks, methods, and technologies. By utilizing multi-dimensional cultural frameworks, advanced quantitative analysis, AI-powered automation, and strategically linking culture to business objectives, SMBs can gain a deep and actionable understanding of their organizational culture. This advanced understanding empowers them to proactively manage culture as a strategic asset, driving innovation, growth, and sustainable success in an increasingly complex and competitive business landscape. The journey from simple observation to strategic cultural management is a continuous evolution, reflecting the growing sophistication and strategic importance of organizational culture in the modern SMB.

References

  • Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture ● Based on the competing values framework. John Wiley & Sons.
  • Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley & Sons.
  • Hofstede, G. (2011). Dimensionalizing cultures ● The Hofstede model in context. Online readings in psychology and culture, 2(1), 2307-0919.
  • Kline, R. B. (2015). Principles and practice of structural equation modeling. Guilford publications.
  • Marks, M. L., & Mirvis, P. H. (2011). Joining forces ● Making one plus one equal three in mergers, acquisitions, and alliances. John Wiley & Sons.
  • Meyer, E. (2014). The culture map ● Breaking through the invisible boundaries of global business. PublicAffairs.
  • Provost, F., & Fawcett, T. (2013). Data science for business ● What you need to know about data mining and data-analytic thinking. ” O’Reilly Media, Inc.”.
  • Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
  • Wasserman, S., & Faust, K. (1994). Social network analysis ● Methods and applications (Vol. 8). Cambridge university press.

Reflection

Perhaps the most authentic measure of cultural values isn’t found in surveys or spreadsheets, but in the stories employees tell each other after hours. These informal narratives, often humorous or slightly cynical, reveal the true, unvarnished culture far more accurately than any meticulously crafted mission statement. Listen closely to the whispers in the breakroom; they speak volumes about what is truly valued, tolerated, and ridiculed within the SMB. Authenticity, in this context, might just be about embracing the messy, unquantifiable human element of culture, recognizing that it’s a living, breathing entity shaped by countless interactions, not neatly defined metrics.

Cultural Measurement, SMB Strategy, Organizational Values

Authentically measure SMB cultural values by observing behaviors, using data, and aligning culture with for genuine insight.

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