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What is the impact of organizational culture on success

Posted on 7 Tháng 4, 202222 Tháng 4, 2022 By Shasu Không có bình luận ở What is the impact of organizational culture on success

Culture has a major impact on the success of your business. This article looks at how culture affects success, as well as what you can do to ensure that the impact is a positive one.

Why Care About Your Company Culture?

Your company culture defines for you and for all others, how your organization does business, how your organization interacts with one another and how the team interacts with the outside world, specifically your customers, employees, partners, suppliers, media and all other stakeholders.

Corporate culture is the key to inspire and motivate everyone. Moreover, it also helps you attract, recruit, hire and retain the highest levels of talent for your business more easily. Because the best people always want to work with the best companies, and the best people are the catalyst for creating ongoing business success.

Talented humans want to do business with the best organizations, because it aligns with their own values and expectations. These talented people, partners and clients see your culture as a strong differentiator, of how you do business, rather than solely on your products or services alone.

Developing a high performance company culture is more important now than ever. It’s not that company culture was ever unimportant, but it’s quickly proving to be a “necessary” to achieve strong results, rather than a “nice-to-have.”

Organizational Culture by the Numbers

The CEO of Pfizer, Ian Read, was quoted in a recent Training magazine article as observing, “Culture touches and influences every function in an organization, from research and development to manufacturing to sales. Get it right, and culture can transform your company’s performance and help sustain success for years to come. Get it wrong, and you’ll pay dearly for it…for years to come.”

Ian Read’s statement is backed up by facts and statistics:

According to CFO, the 13 companies that have appeared in every Fortune’s annual 100 Best Companies to Work For list see higher average annual returns. Their cumulative returns are as high as 495 percent, and the majority of the 100 on the list outperformed the S&P 500 by 84 percent.

Forbes notes that companies who have strong cultures experience an increase in revenue growth that is four times greater than those who don’t.

In a recent Deloitte survey, 82 percent of respondents said they believe that culture is a potential competitive advantage.

A study conducted by Glassdoor showed that being named a Best Place to Work is associated with a .75 percent stock price increase ten days after the notice. Those companies also outperform the overall market by 115.6 percent.

Interestingly, the Glassdoor study also showed that the 30 lowest-rated public companies on Glassdoor broadly under-performed the market.

What Impacts an Organization’s Culture?

Companies with a strong culture, on average, produce better results than those with a weaker culture. Motivated employees and high-performing managers are the result of a strong corporate culture.

Companies with strong cultures tend to be higher performers.

Typically, companies with a strong culture tend to produce superior results as compared to those with weaker cultures. When a culture is strong, it leads to motivated employees and high performing managers. 

Strong culture leads to ongoing involvement and participation by a company’s employees, and can predict current and future financial performance. A recent study shows that culture can be an integral part of the ongoing change process (all companies are in a constant state of change due to competitive market and other pressures), and that certain cultural traits may be utilized as predictors of an organization’s performance and effectiveness (Toward a Theory of Organizational Culture and Effectiveness By Daniel R. Denison and Aneil K. Mishra – Organization Science, Vol. 6, No. 2, March-April 1995).

Benefits of a strong culture.

In addition to financial advantage, there are many benefits to having a positive culture within your company. These include:

  • Improve communication skill: Good (transparent) open communication that helps departments and employees work and collaborate better together towards the achievement of company goals.
  • Towards the common goal: Companies with corporate culture have a clear vision and mission. Thanks to that, employees in the organization can work together and work towards the common goal of the team.
  • Develop company: Corporate culture builds respect, trust and cooperation among employees, which contributes to the company developement.
  • Decrease  internal conflict: Less internal politics, a flatter and more efficient decision-making processes, and fewer disagreements as common vision is aligned across leaders.
  • Finish goal more easily: Less complexity leading to faster execution within an informal control mechanism, leading to the easier achievement of business goals.
  • Increase personal awareness: A strong sense of identification across the organization with shared understanding.
  • Reduce time and cost for recruitment: A reduced employee turnover rate with resultant definitive financial and operational advantages

What Enables an Organizational Culture That Drives Success?

The best way to Organize Culture Driving Success is empowering employees instead of restricting them. When we do so, they are motivated to do better and more than their responsibilities.

Exceptional customer care and satisfaction is a key contributor to overall business success because if customers aren’t happy, they will seek products and services elsewhere. As a result, once authorized, they will also take good care of our loyal customers in the best ways to keep them.

More than empower them to exceed customer expectations, you need to give them the freedom and authority to be creative, to initiate innovative projects, and to adapt and respond in real-time with solutions that help their teams, the business, and the customer. 

Decision-makers and experts in the company share information, resources, and power throughout the organization so that employees can make quick decisions and solve problems.

Five keys to creating a winning culture

1. Hire for Culture

Building an insanely great culture starts with the people you decide to have on your respective teams. Investing time and effort to ensure the proper person is selected is fundamental to the success of the team and will pay off huge in the long run. 

Slowly hire people.

If a candidate has all of the qualifications for the job but does not fit your culture, they will not be hired. While skills are important in building great teams, the candidate must also fit into your culture to become part of our family! Skills can be taught, culture cannot!

2. Empower your Teams

Nothing says you trust a person more than when you empower them! In order to build a great culture, you must remember to trust your people. Create a space of trust and your teams will go above and beyond your expectations. 

The more a person feels empowered, the more he or she feels connected to that project or task, the result is heightened loyalty and an increased vested interest in success! 

While empowering teams is great, you must be willing to have team members fail occasionally as it goes hand in hand with trust.

3. Challenge the Status Quo

Whether you’re leading an ice cream shop or heading a large grocery chain, innovation is an ingredient needed for success! 

Service and customer experience are constantly changed which will lead to curiosity for them. This makes them more interested in your business and will also be easier to spend money on your services.

So, it forces us to think differently and to find solutions to make things easier, quicker, smarter, more effective and most of all fun!

4. Deliver Clear, Transparent, Honest, Communication

Don’t be afraid to over communicate! Building a sustainable company culture requires clear, transparent, honest communication. It requires leaders to consistently send a clear message as well as constantly reinforcing the value in that message. 

 5. Love What You Do and Have Fun

Do what you love and love what you do. You should aim to blur the lines between work and play. When both of them become blur, it is called it living. When you do what you love, it no longer becomes work; it actually becomes bigger than you. 

In order to do great work, you must love it… love it like you love breathing; because it will get hard, often difficult and challenging. Find people who are insanely passionate about their area of work, put them together, let them play; the results will blow you away!

Collection & Edit by Marketing Dept from Shasu Coaching & Shasu Mentoring
Reference

  • https://www.kaplansolutions.com/article/the-impact-of-organizational-culture-on-business-success
  • https://www.linkedin.com/pulse/why-company-culture-so-important-business-success-peter-ashworth/
  • https://www.romamoulding.com/5-keys-to-an-insanely-great-company-culture/

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