Corporate culture improves businesses

In addition to performance, organizations are distinguished by “the way they do things around here.” How these values, beliefs, norms and behaviors are internalized by your employees and are used to fit in, do their work and interact with each other and your customers represent the culture of your organization.

The extent to which there is an alignment between your business strategy, organizational vision and organizational culture will basically determine whether or not your organization meets its goals.

Gaining steam

Corporate culture is gaining recognition as an untapped benefit for managers, employees and companies alike. The right corporate biology – the optimal balance of people and culture – can mean the difference between success and failure.

All success-bound businesses wonder what the secret is to building a great organization. How do you sustain consistent growth, profits, and service in an industry that can literally change overnight? And how do you build a culture of commitment and performance when the notion of loyalty seems like a quaint anachronism?

I can’t stress enough how important it is to pay particular attention to common-sense keys to the development of a strong corporate culture. The importance of your company’s culture should not be overlooked.

Employee loyalty

A good corporate culture goes a long way toward attracting the very best people and retaining that top talent. One outcome that has been quantified is employee loyalty; turnover rates at companies with strong cultures, research says, are usually significantly lower than the industry average. Loyalty is challenging these days whether means holding on to those valuable employees or customers.

After five years of research, Harvard Business School has established a quantifiable set of relationships that directly link profit and growth not only with customer loyalty and satisfaction but also to employee loyalty and involvement. Therefore, employee loyalties increase customer loyalty when employees are empowered. According to a 2001 Gallup Organization study, only one quarter of employees are actively engaged on the job. An alarming 55 percent are just putting in time.

Workplace attitudes

Entrepreneurs need to first know what kind of culture they want, and then pay special attention to how their culture forms attitudes and beliefs about what is allowed or not allowed in the workplace and which behaviors are rewarded, as well as those that are not. If the cultural norms of a workplace contain beliefs such as, “Around here, nobody dares make waves or step out of bounds,” or, “If you do just enough to get by, people will leave you alone,” the organization’s performance will reflect those beliefs.

On the other hand, if the cultural belief system contains positive approaches, such as, “Winners are rewarded here,” or, “People really care if you do a good job for the company,” that also will be reflected in the organization’s performance. No high-sounding corporate slogans or mottos will really influence bottom-line performance unless the employees’ belief systems have created a productive culture that is in agreement with the organization’s mission.

Communicate values

Most organizations have a vision, and all organizations have values. In an adaptive culture, employees not only understand the vision, they act on it. Communicate, be externally focused, and promote those who embody your company’s core values. Align unwritten rules with formal policies. It is also important to eliminate “fear factors” – those things that may bring about suspicion, such as holding closed-door meetings or hiding company problems from employees.

Every company has a culture, regardless of whether its leaders play an active role in creating it.

By taking an active role to develop a work environment that supports your core values, you can go a long way in enhancing the morale and productivity that will support your success.

Brenda Obeidat is the owner of Ivy League Corporate Services.[[In-content Ad]]