Mastering the art and science of business culture can lend itself to great success. What is company culture? It is the concept that includes all of an organization’s attitudes and attributes. Company culture is unique to every organization and the people who work there, and it’s shown through the actions and habits of every employee. 72% of executives say that culture is key to performance, but only 32% believe their company culture is aligned with its business strategies.
Changing company culture is the key to success. According to a study conducted by John Kotter, firms that had a strong corporate culture saw a 685% increase in revenue, 901% increase in stock price, 756% increase in net income, and a 282% increase in job growth. Focusing on cultural transformation can bring big rewards. After 5 years, there is an 85% increase in net profit increase, and in just 3 years, there was a 25% increase in workforce growth.
Additionally, cultural transformation generates a 50-point increase in employee engagement. Increased employee engagement produces a variety of benefits. 21% higher profitability, 20% higher sales, 17% higher productivity, and 10% higher customer ratings have all been associated with increased engagement. Increased engagement also saves money; in 2020 alone, 85% of employees were not engaged, creating $7 trillion in lost productivity.
Meaningful work is the difference between an employee who actively erodes company culture and one who actively works to better the organization. Employees care about culture, meaning, and motivation; when work is tied to our values, it increases employee engagement, incites inspiration and innovation, and raises motivation and productivity. In this day and age, Millennials and Gen Z expect their work to help meet societal needs. 1 in 3 employees state that the primary reason they stay at their current job is that they find the work meaningful and fulfilling.
While a positive outcome is expected from all digital transformation efforts, barely 1 in 8 are successful. A poor corporate culture can make employees unwilling to support transformation efforts. 57% of private equity dealmakers say cultural issues hinder value creation. Employees are unlikely to embrace changes to rules and procedures, especially if they have been reprimanded for the same actions in the past. Additionally, change may incorporate new technologies that can expose employees who lack the necessary skills, prompting the fear of job loss. Lack of trust, feeling overburdened, and fear of job loss are other factors that contribute to resistant employees.
Cultural transformation investments that matter include strategic imperative, skill training, job alignment, future vision, and reward success. Future vision establishes a compelling vision and determines what your future looks like and how to position your company to best serve your market. Skill training equips your workforce with the skills needed to meet your vision, enabling high performance and career advancement. Job alignment arranges organization and job functions to the company vision, energizing employees to exercise their passion every day. Defining a single strategic imperative to focus your efforts allows your company to be more successful, and ensuring reward systems align with your vision throughout the organization reinforces culture by trumpeting success. Invest in a business and cultural transformation today: