Why Is Corporate Culture Important?
Corporate culture is a very hot topic. We are constantly confronted with news items of poor culture being the reason why organizations fail, or become completely unethical. Unfortunately, we don’t often see stories of positive culture working properly. However, good leaders and managers understand the importance of having a strong corporate culture, something that every employee and the customers of the company are able to sign up to.
Businesses are becoming increasingly complex and the culture has to be able to respond to this. In a recent study by Booz & Company, who conduct research on innovation every year, it was noted that results are no longer driven by research and development. Instead, what matters was that companies have a culture that supports new techniques and innovation, and that this is strategically aligned. However, how do you build a strong corporate culture? What are some of the best practices we should look into in order to ensure your organization is able to move forward towards your vision?
Research Suggests Culture Drives Profits
There is significant research to suggest that businesses with a strong and positive corporate culture see much greater long term profits.
However, the values in this corporate culture do not just have to be advertised, they actually have to be lived by. Employees need to perceive a real culture of integrity in order to see their own performance improved. Integrity needs to be the norm of behavior within a company, meaning that everybody is able to trust each other.
Understanding Corporate Culture Is Important
Culture is the environment around you at work. Whenever people come in contact with some of the members of a company, it only takes them a few moments to determine what the overall culture is. For instance, you know almost immediately that you will look horribly overdressed if you walk into a Quicksilver store wearing an Armani suit. However, it isn’t just about clothing. Company culture involves a great deal of other elements and you must be aware of all of these. Another thing to be highly aware of is whether your company culture evolved on its own, or whether it was designed based on the passion for the core values that you should have. You must be able to identify the culture your company operates by in order to find out what your strengths are, and whether there are any areas for improvement to focus on.
The Importance of Getting Your Corporate Culture Right
Every organization has a corporate culture. However, this culture can be something that draws people in and something that retains people within the organization, but it can just as easily be a true repellent for potentially fantastic employees. Get your corporate culture right, and you will see increased productivity and creativity. Get it wrong, however, and you will see higher levels of sick leaves, greater staff turn over and generally unhappy feelings. Clearly, it is very important that leadership and management are completely aware of what the current corporate culture is, and what they can do in order to improve it.