CORPORATE HEALTH
Company culture can strongly impact success
In this economic situation where the business environment has become increasingly unstable, companies that have a strong organisational culture are most likely to survive the downturn and succeed once things look up. A company’s culture is one of those intangible factors that have a strong impact on its success.
The dictionary defines culture as an interwoven system of values, beliefs, ideas, skills and arts of people or a group that are followed, communicated and transferred to others and even to the next generation. Culture influences the behaviour of employees and the way business is conducted by the company.
Culture can also be defined as the work environment, the attitude and work style of employees. On the organisational level it has an impact on the goals, objectives, policies and strategies of the business. It determines the way employees are treated; the benefits and perks offered and in the present times even how layoffs are done. It is also those tacit rules and habits which determine organisational practices. In short it defines the brand identity and personality of the organisation.
Culture is the “Values, beliefs, behaviours that differentiate one organisation from the other,” according to Dale Primer co-author of the book, Investment leadership building a winning culture for long-term leadership. Today culture has become the differentiating factor and probably explains why among companies who make the same products or provide the same services, only a few have managed to remain buoyant in this market while others have fallen by the wayside. There is no denying the fact that it is the culture of these companies that provides them the competitive advantage.
When an organisation prides itself on a well-established and strong culture, it has the best asset to survive any situation and the confidence to face any crisis. So, if the situation changes, or strategies are modified or the markets are volatile, the business trudges on. Culture gives the stability that makes the company less vulnerable to any negative changes brought about by inside or outside factors.
Having a vibrant culture means higher productivity, better return of investment to stakeholders, a happier workforce, better performance, higher quality and lesser employee turnover.
So what are the factors that are a part of such a culture? Here is a list:
• Values are clearly communicated
• Everybody is clear about where the organisation is going
• Purpose of business extends beyond profitability
• Strategic priorities are clear
• Performance is regularly measured and communicated
• Every employee is expected to be responsible
• Performance standards are clear
• Recognition/reward for good work
• Everyone is treated with respect
• Personal development of employees given priority
• Fun, work go together
Such a culture determines the priorities of the organisation, influences factors like customer focus, innovation, cost cutting measures and employee empowerment.
For employees culture is an important factor that helps them align their individual goals with that of the organisation, it acts as a motivator for better performance, teamwork and inspires their full commitment and makes them happy at work. When employees develop such an attitude, they put in superior performance, which definitely gives the organisation an edge over others.
Leaders definitely have a strong role to play in building such a culture and when they invest their time and effort in creating an environment where people want to put in their best, they are building a competitive advantage. When leaders nurture a business where the culture is closely connected to their people, they are investing in employees who will be willing to do all it takes to help the organisation succeed. And this is definitely the need of the hour.
