Why is organisational culture essential for performance? Organisational culture has become a hot topic in recent years, heightened by the way companies have had to embrace working from home during the pandemic, but then create a ‘new normal’ once they were able to return to the office. Whether we like it or not, we have a new normal now.
From a leadership perspective, transparency and open communication are key to motivating and inspiring your employees. Whatever your working situation, hybrid or in-office, it’s critical to be an inclusive employer. This means actively listening to your employees. It’s important to let them know you may not agree with their point of view on every recommendation, but that you will be open and transparent, and listen. When communication channels are kept open and communication is genuine, it makes a difference. This is how you establish and build trust.
Embracing Change
Since the pandemic, employees have realised that how things have always been done isn’t necessarily the way they should be done forever and the needs of the workforce have changed. People are prioritising a better work-life balance and are looking for roles that allow them to have more flexibility when it comes to choosing where they work. Not everyone wants to be fully remote and not everyone wants to spend five days in the office, so it’s about finding a happy medium for the individual without it impacting the performance of the organisation.
Gen Z employees are also looking to the leadership team to guide them in embodying the organisation’s mission, vision and values. Rather than working within a hierarchy, they’re looking to establish relationships with everyone so that they can learn from everyone, just not their peers or manager.
Contributions to performance
When an organisation has a positive culture it impacts everything.
Culture sets the tone for how things are done. A positive culture fosters collaboration, gives employees autonomy over decision making and offers a greater sense of purpose. If employees feel engaged and listened to, they’re more likely to show up and do their best work.
The three key ingredients for a positive culture include:
Loyalty – when employees feel valued and appreciated, they’re more likely to stay with you for a longer period of time and are more likely to speak highly of you and recommend your company to their friends, colleagues and peers. When employees feel undervalued they start to disengage. Consulting firm Gallup estimates that just 33% of U.S. employees are engaged and 17% are disengaged. When employees are disengaged, they may become less loyal to their employers and even may display toxic behaviour.
It’s important to remember that including professional development for your team really does count. I chatted with a senior executive recently who said her organisation wasn’t planning to include professional development in their next budget. When I asked why, she said their leaders at the top felt that employees would “just figure it out “for themselves.
This can work – except when it doesn’t.
If we don’t provide an opportunity for professional development, employees may leave and go to a company and a leader that does.
Harmony – when there’s tension in the air, everyone feels it. I used to work for a company with a very charismatic, personable leader. But there was a price. He had a driver who would let the office assistant know when they were approaching the office. Immediately, the assistant would send out an email letting everyone know that “Elvis was in the house”- this was the sign to be ready because chaos- and some tension- would likely ensue.
Even if you weren’t directly involved in the chaos, you definitely felt it! People can almost always sense when things are ‘off’ and that will impact how they engage and interact with others.
Growth – when everyone is working towards the same goals, there’s a sense of camaraderie and a willingness to go above and beyond to succeed. We love feeling like we have a purpose, are part of something bigger, and are positively contributing to change as a collective.
Leaders who can embrace collaborative and inclusive practices, share the vision and bring others along with them will succeed in retaining their top talent and contributing to the reputation of their organisation.
In the absence of culture
Here’s the thing: if you don’t determine what your company culture is, it will happen anyway. Toxic people will end up negatively influencing the performance of others, who may not feel comfortable pushing back or have the confidence to go up against their outspoken peers.
As one leader put it, “Communication is everything.” Quieter employees are often overlooked and overpowered by their vocal colleagues, even though their thoughts and opinions are valid. If you’re not keeping a close eye on how your team communicates and operates you may not like the end result.
Creating a positive company culture
As your organisation grows, strategically determining what you want your culture to be is crucial. And if it’s not there yet, I’d recommend hiring an external leadership and communications consultant to help you decipher which problems exist and how to address them. Then they can devise a plan that will help you navigate your way into a positive company culture that people are proud to be a part of.