At TBG we know just how powerful company culture can be and the crucial part it plays in improving company performance, not just company-wide but at an employee level. Although it is only just emerging into the mainstream of business development, getting ahead of the curve now could be the making of your brand as you navigate the ups and downs of growing a business.
Company culture is increasingly supporting massive development of iconic businesses in terms of profile and profitability. But there’s another lesser-known, but incredibly powerful benefit of well thought-out and implemented company culture – enhanced performance on an individual and company-wide level.
The importance of company culture?
One of the beautiful things about approaching performance from the ground up in an innovative way such as this is the multiple other benefits it can have for a business. As you begin to pay attention to, many important key aspects fall into place. Some of the most commonly reported benefits of strong company culture include:
- Increased profits
- Mobilised, efficient teams and processes
- Greater staff satisfaction and retention – reduced staff turnover
- Happier customers – through a stronger connection with end users and clients
- A more productive and responsive workforce
- Greater adaptability and the ability to thrive in challenging environments or markets
In a nutshell, the importance of company culture goes beyond a set of core values that informs your approach and purpose in a philosophical sense – it can also impact upon your success and acquisition of key objectives – as well as how long it takes you to reach your goals. When people are amongst your most powerful assets, paying attention to them and how working with you makes them feel is a key element that influences both individual performance and company performance at a foundational level.
How does company culture affect performance?
Many of the studies and research conducted to date on the influence of company culture have been directly influenced by employees themselves. In one study:
- 77% agreed a strong company culture influences job performance and inspires them to do their best work
- 76% felt there was an impact on productivity and efficiency
- A further 74% said it helped them to provide better customer service
In further enquiries, employees surveyed said that good company culture allowed them to be themselves and speak up and contribute ideas, creating space for growth including recognition of key individual skills and the space for individuals to play to their strengths and be engaged in a role they enjoy and excel at. Greater ability to take initiative and inspired action, many minds working towards the same goal with an ultimately better outcome.
When people feel part of something, when they feel that what they do matters and can be tied to strong core values, they are more focused. They want to perform better, they want to work hard and are happy to go the extra mile for the business.
Improving company culture for enhanced performance
Interestingly, although respondents for the above study felt that company culture had an important influence on their performance, only a quarter felt that their organisation had a strong company culture based on an identifiable set of core values. There’s room for improvement across the board – but how can established and new businesses alike identify a way forward when creating their own company culture? The bigger the company, the more complex the undertaking appears to be. And with so many other things to do, how can smaller organisations find the time and resources to dedicate to this monumental task?
The key to this lies in recognising the benefits of improving company culture – when you do, other key concerns will be addressed by default.
So what can companies do to strengthen and underpin their company culture? Some starting points include:
- Identify your core values – What do you stand for? Why do you do what you do – what benefits do you bring? This is the main starting point which all other branches will stem from.
- Schedule regular, meaningful check-ins – Communicating clearly and openly within your company will enable you to keep track of your alignment and see where changes can be made in a timely manner.
- Determine how you can align your profits with your purpose – How does what you do marry up with your core values? This also involves identifying any discrepancies, areas where your offering, strategy or methodology does not align
- Ask employees and customers for input – as the above survey shows, employees have a lot to offer in terms of valuable insights that can greatly improve your business offering. Many companies are out of touch at the upper levels with the reality of day-to-day life within the business as well as what it feels like to spend money with them. Getting insights from real people who are connected with your business internally and externally is crucial in order to get an accurate picture of your current business impression, and how you’d like to improve that.
- Build strong relationships and connections with employees through incentivisation and support, as well as keeping channels of communication open and transparent.
It’s important to note that improving company performance is a multi-step process – it takes time, and needs consistent effort and company-wide support to make a meaningful shift happen.
Planning and preparation are key – so incorporating an OKR structure and outsourcing professional help can be key in order to secure a brighter future and enjoy the positive impact of corporate culture on company performance.
For more on company culture, performance and planning, speak to one of our Giants today. As specialists in business consultancy we’re well-versed in implementing powerful, personalised strategies and bringing about transformational change for companies of all shapes and sizes, working from the ground up to build strong foundations and unshakeable success.
Whether you’re looking to improve performance within your business or look more closely at the link between your company culture and performance, Get in touch with our team of experts or learn more.