Claire Chandler, Executive Leadership Advisor at Talent Boost. Growth on Purpose: I examine how leadership shapes the world.
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Workplace culture gets a bad rap. Some executives think it's a squishy term that human resources folks use to justify the need for employee satisfaction surveys. Others think it bubbles up organically from the ground level of the workforce, so it doesn't require intentional focus.
Both of these beliefs are false.
A positive organizational culture is not a "nice to have." It's a business imperative. Simply put: Strong, fit cultures drive business success. Need proof? McKinsey & Company found that companies with strong cultures achieve 60% higher shareholder returns than average cultures—and 200% higher returns than those with poor cultures. PwC also found that "strong cultures drive better business outcomes." In fact, the majority of the surveyed leaders said culture is more critical to organizational success than strategy or operations.
How To Build Your Best Culture
Let's face it: If your culture is poor, it doesn't matter how brilliant your strategy is. Your people will lack the enthusiasm, initiative and ethical discipline to achieve it. Strong cultures enable organizations to accelerate trust, deepen employee engagement, innovate, increase productivity and improve employee satisfaction. All the way, they're driving business success.
So how do we create a culture that drives success?
Building a great culture isn't easy. It requires a commitment to continuous improvement, a willingness to invest time and resources and, most importantly, leadership accountability. Here are a few tips.
1. Start with a clear vision and mission.
The nucleus of a company's culture is its purpose. Are your vision and mission so clear and magnetic that everyone—from executive leadership to frontline employees—can articulate it consistently? Moreover, can they all see a tangible connection between what they do and why it matters? Your mission is not just a statement on your website or in onboarding materials. It must be embedded in the way you hire, the way you communicate and the way you make decisions.
2. Lead by example.
Leaders shape culture. It's that simple. They set the tone for your entire organization. Are they modeling the kind of behavior that creates cohesion and success? If you want your employees to be engaged, committed and accountable, leadership must be transparent, honest and collaborative in both communication and expectations. You must also hold yourselves and others accountable for results.
3. Empower your employees.
The biggest driver of employee commitment is not monetary compensation. It's feeling "in on things," valued and empowered to make decisions. Do you trust your teams to do their jobs, and have you equipped them with the tools they need to succeed, like technology or development programs? The right resources and a good dose of trust increase engagement and help create a sense of ownership and commitment to the organization's success.
4. Let people learn from failures.
In a high-performance culture, mistakes are inevitable. What's important is how you respond to them. Are you fostering an environment where people can fail forward? Or do you ask for innovation and then punish ideas that don't pan out? You should encourage a culture where employees take the time to learn from the experience, identify opportunities for improvement and move forward with a renewed sense of purpose. Don't forget to celebrate successes along the way, and use them to recognize and reinforce the behaviors that lead to success.
5. Align your teams.
A company's culture is only as strong as its weakest link. Do you intentionally and purposefully align your teams around a common set of values and behaviors? You need to make sure everyone understands what's expected of them, hold everyone accountable for living up to those expectations and be consistent in how and who you coach, correct, recognize and reward.
Building a great culture takes time, effort and a commitment to continuous improvement. But the benefits are well worth it. A well-formed culture can inspire innovation, increase productivity, improve employee satisfaction and lead to even greater business success. As an executive, it's your job to lead from the front. Focus on inspiring trust, accountability and engagement, and watch your organization thrive.
The bottom line is that culture drives success, and leaders shape culture. Are you actively shaping yours?
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