Why organizational culture matters

When your culture is clear, different perspectives can gather behind it with common purpose. The culture at your organization sets expectations for how people behave and work together, and how well they function as a team. In this way, culture can break down the boundaries between siloed teams, guide decision-making, and improve workflow overall. On the flip side, a toxic organizational culture has the capacity to do just the opposite. A healthy culture addresses both of these areas by finding an appropriate balance based on company values.

Does your company stress performance to such a degree that you feel like your physical and mental health are being overlooked? To be properly effective they need to be developed in a holistic way, consistent with a business culture that is conducive to their success. That means supportive management behaviours, flexible working options and an open culture that allows employees a voice and some say in shaping the working environment.

So what are your next steps? Find out what aspects of your organizational culture are most important to your people, and think about performing a culture audit. Your goal is to discover what your people value most and support that. Today potential employees look for more than just a good salary. They look at the overall working conditions, organizational culture, leadership etc.

A recent research found that companies with rich cultures have In the current times corporate culture is all about transparency and scrutiny. Most leading organizations base their rankings on employee critique of company culture. Even the clients and customers are directly affected organizational culture. From hiring practices, to how people work on a day-to-day basis, to decision-making, to flexible policies—company culture often dictates the "rules" in perhaps unwritten but very real, tangible ways.

Without a strong company culture, you either end up with a general feeling of blandness—driving away excellent employees and failing to captivate prospective ones—or a clash of values and approaches within your team.

Many studies have shown that employees care about company culture, and that their relationship with it can make a big difference to their motivation at work. Once you think about it, it really makes sense. Fostering a great business culture will not only increase employee happiness and productivity, but it will sharpen your edge when competing with other businesses for new talent.

It largely comes down to flexibility : employees are encouraged to work when they like and how they like, which builds a huge sense of trust. But they clearly also have interests outside of themselves. Google is know for its big philanthropic ventures , providing financial aid, volunteering time and just generally helping out where they can. You might also think of Mars, Inc.

Their Five Principles —Quality, Responsibility, Mutuality, Efficiency and Freedom—unite and guide their corporate culture for more than , Mars Associates around the world. They, too, have translated their corporate culture message through great working policies and opportunities, including flexible working schedules, bring-your-dog-to-work programs and schemes such as the Mars Volunteer Program, which supports underprivileged communities.

Ultimately, you just need to create a community that feels supported, represented, trusted and valued. Listen to what individuals need, offer useful and meaningful rewards, and create structures and policies to exercise your values. Companies like Google and Mars, Inc. The real test of a strong culture is its ability to respond and adapt to change.

The best thing to do is to make culture as important as your business strategy. While company culture is one of your most important responsibilities as a business leader, realize that it is not something that can be decided and imposed from above—you need to ensure everyone in your company has the opportunity to engage with it and shape it.

View our Privacy Policy for more information. Preferences Deny Accept. No matter the industry, companies need an intentional organizational culture to remain profitable, and many leaders are ten steps ahead in this regard.

These examples, among many others, prove the need for an intentional organizational culture. But how is that done? Good organizational culture keeps employees happy and the bottom line prosperous. But is it something intentional?

And companies of all sizes, in all situations, need to approach it as such. Put it this way: people take vitamins for different reasons than they take painkillers. Vitamins are used to ward off problems, sustain energy and build up immunity.

Painkillers are used after the fact to numb a serious problem. But how, specifically? Take a close look at what your employees have to say and what would benefit them through two crucial engagement strategies: surveys and focus groups.

Start with an anonymous, company-wide survey to get a reading of what could be improved with your culture, and what could stay the same. Ask a mix of qualitative and quantitative questions and set benchmarks for measurable growth later on. Once survey results are in, implement focus groups of 12—15 employees of various ages, demographics, seniorities and tenures, and choose a moderator to host an open conversation and collect responses.