Organizational culture deals basically with how we do things around here. It encompasses values, beliefs, artifacts and philosophies of a company. This is one of the keys that determine effectiveness in the business world.
It develops almost unseen. It gets passed down to the new recruits. It differentiates companies. It accounts for the competitive advantage enjoyed by some. It matters and failure to come to terms with this fact will be counterproductive. So why does it matter?
We want to be engaged in our work. We yearn for work that is enjoyable, meaningful and engaging. When we are engaged we are safer on the job, more productive and more willing and able to delight customers.
It is for these basic reasons that organizational culture matters. It is the right thing for an organization to do – to think about the work environment, working relationships and “how we do things here.”
Focusing on building and sustaining an organizational culture is one way of showing that people are the organization’s most valuable asset.
There are of course many other bottom line business reasons to focus on and build organizational culture. Here are seven of those reasons.
A strong culture is a talent-attractor.
Everybody wants to work for the company they can be proud of. They want to be seen as people of substance when they represent their company. What attracts anyone to any company is the organizational culture. People want to work where they are valued and contribute towards something that is of great significance.
Prospective employees read reviews online about the company they plan to work for and interact with current employees just to gather information. In many cases, if employees seem to be really healthy and happy, many good potential employees are drawn in.
A strong culture is talent-retainer.
How likely are people to stay if they have other options and don’t love where they are? Your organizational culture is a key component of a person’s desire to stay.
Culture that values employees and encourages creativity and leadership will be found appealing to many. People are not only in it for the money. They pursue money and other nonfinancial interests.
A strong culture engages people.
People want to feel engaged. To succeed in undertaking projects, it is essential to make employees part of the decision-making process and teams. They will feel a sense of ownership. They will also feel responsible for the success of the organization.
If decisions are made top-down, failure is almost always sure. Resistance is likely going to come from the employees. Your culture can engage people. Engagement creates greater productivity, which can impact profitability. Need I say more?
A strong culture creates energy and momentum.
Build a culture that is vibrant and allows people to be valued and express themselves and you will create a very real energy. That positive energy will permeate the organization and create a new momentum for success.
Energy is contagious and will build on itself, reinforcing the culture and the attractiveness of the organization.
A strong culture changes the view of “work.”
The term work carries with it some negative connotation. Work equals drudgery, 9-5, “the salt mine.”
When you create a culture that is attractive, people’s view of “going to work” will change. Would you rather see work as drudgery or a joy? Which do you think your employees would prefer? Which will lead to the best results?
A strong culture creates greater synergy.
A strong culture brings people together. When people have the opportunity to (and are expected to) communicate and get to know each other better, they will find new connections. These connections will lead to new ideas and greater productivity – in other words, you will be creating synergy. Literally, 1 + 1 + right culture = more than 10. How is that for leverage?
A strong culture makes everyone more successful.
Any one of the other six reasons should be reason enough to focus on organizational culture. But the bottom line is that an investment of time, talent and focus on organizational culture will give you all of the above benefits.
Not only is creating a better culture a good thing to do for the human capital in the business, it makes good business sense too.