94% of executives and 88% of employees believe a distinct workplace culture is important to business success. This was one of the key findings of a Deloitte survey on core beliefs and culture. The survey’s findings confirmed that there is a strong correlation between employees who say they are “happy at work” and feel “valued by [their] company” and those who say their organisation has a clearly articulated and lived culture. 83% of executives and 84% of employees rank having engaged and motivated employees as the top factor that substantially contributes to a company’s success. This brings us to the key question – Does your organisation have a clearly defined Organisational culture?

What is organisational culture

 Organisational culture is the way in which people in an organisation relate to each other, their work and the outside world, in comparison with other organisations. Your Organisational Culture shows how your organisation works: how things get done, the interactions between people, and employee relationships to their work and the outside world. The best organisations often place equal emphasis on strategy and culture. Such organisations create a culture that motivates their teams.

The ideal organisational culture

We often get asked about the ideal Organisational Culture. This is a fundamental question for new businesses as well as established organisations seeking to recalibrate their culture. It’s important to find a sustainable culture that suits your organisation. Nothing demonstrates this better than the difference in culture between two successful automobile brands. Tesla has quickly acquired a cult following with its innovations in the electric car segment. Tesla’s Organisational Culture tends to lean more towards new technology and innovation, over, for instance, build quality. Alternatively, Jaguar has a history and reputation of premier build quality. If these two companies were to try and switch their Organisational Cultures, their ability to focus on these areas would undoubtedly change and have a far reaching impact about these brands are perceived by different sets of stakeholders.

One size doesn’t fit all

No two organisations, no matter how similar, are the same. Finding the ideal Organisational Culture is not just about replicating good industry practices or observing what others are doing. It requires that you take a hard look at how you can support your strategy through culture. Your Organisational Culture shows how your organisation works: how things get done, the interactions between people, and employee relationships to their work and the outside world. Organisational Culture determines how and if you are reaching your goals or key performance indicators (KPIs), so, it's crucial to ensure that your way of working supports what you want to achieve, rather than hinders it. By shaping an Organisational Culture that fits your needs, you will be positioning the organisation to be able to reach these goals.

Are you looking for consultation on the perfect Organisational Culture for your company?

Hofstede Insights can help you build the enabling Organisational Culture

Each business depends on a unique strategy for success. Your strategy is the ideal starting point to build a sustainable Organisational Culture. Identify the crux of your strategy. It could be:

• Promoting innovation
• Growing within your current market
• Following strict safety guidelines
• Being customer focused
• Aiming for a successful M&A
• Looking to reduce production costs
• Protecting confidential information
• Sustainability
• Employee focus

Once you have decided on your point of focus or interest, you have to direct your Organisational Culture according to your strategy to reach that goal. What that looks like in practice may differ drastically depending on many factors such as your industry, your size, and National Cultures differences. At Hofstede Insights we’re specialised in supporting companies throughout this process.

(Read about how Organisational Culture and National Culture impact your organisation)

Six steps to build the ideal Organisational Culture  

Define your strategy: the vital first step. Even before you are able to align your Organisational Culture with your strategy, you have to clearly define what that strategy is.

Understand your current Organisational Culture: it’s important for you to get an impartial understanding of how your Organisational Culture is today. You can do this by seeking inputs for different areas of your organisation before you establish an overall view of the situation.

Identify areas of improvement: Once you have clearly defined your strategy and have an overview of your current Organisational Culture, you are ready to identify the gaps where improvements could be made.

Create an action plan: once you put together the big picture, you are now ready to create an action plan. In most cases you will have too many gaps to address at one time and that is why we suggest starting with the most beneficial ones  to your organisation.

Monitor the progress: In order to ensure consistent monitoring, we recommend creating what we call Culture Squads. This means tasking a group of people with driving and monitoring change. Hofstede Insights provides training and mentoring for this as well.

Re-evaluate regularly: Consider evaluating and re-evaluating your Organisational Culture on a regular basis in order to make sure you are continuously moving in the right direction. This also helps you to understand if the actions you are taking are having the desired impact on your Organisational Culture or if different actions could have more impact.

Reach out to us to build an effective and sustainable Organisational Culture

Hofstede Insights can help you reach your Organisational Culture goals

Our objective is to make sure you reach your own goals, based on your own strategy. We support your team through the entire process of clarifying and aligning strategy with the Organisational Culture. Our Organisational Culture Scan helps us develop an impartial understanding of your current culture. This scan is based on six independent dimensions and each of these dimensions help identify the gaps between where your organisation is and where it wants to be.

Once the gaps have been determined, we can begin to evaluate which ones are most relevant to success. We also support organisations to create an action plan based on the most critical issues they are facing. By training and supporting “Culture Squads”, Hofstede Insights help you maintain and track progress. Finally, because our Scan is standardised, Organisational Culture can be measured when necessary and progress can be evaluated.

We can help you build the perfect Organisational Culture for your company?

A Gartner survey  in 2021 revealed that 91% of HR leaders are concerned about employee turnover in the immediate future. According to this survey, nearly 50% of employees hired over the last 12 months had two additional job offers. Another Gartner survey of 1,609 candidates between May and June 2021 found that nearly half of today’s applicants are considering at least two job offers simultaneously. Many organisations across the world are facing a new challenge in a post-pandemic phase as the job market rebounds riding a wave of global economic recovery.

That brings us to the question. What is organizational culture. Even before we get to that, first let’s define culture.A well-defined organizational culture can help retain talent and ensure you are on course to meet your goals. Deloitte’s Talent 2020 study that surveyed the talent paradox from the employee perspective revealed that employees believe that employee retention is not simply an HR function; it should be driven by business leaders. According to this study, more than six in 10 employees (62 percent) who plan to stay with their current organization reported high levels of trust in their corporate leadership, while only 27 percent of employees who plan to leave express that same trust. In addition, 26 percent of those who plan to leave their jobs in the next year cited lack of trust in leadership as a key factor.

Are you looking for consultation on the perfect Organizational Culture for your company?

Culture - defined

At Hofstede Insights, we have worked closely with companies to build a sustainable and effective organizational culture. Professor Geert Hofstede defines culture as the "the programming of the human mind by which one group of people distinguishes itself from another group". It is always a shared, collective phenomenon, that is learned from your environment.

The layers of culture

Culture consists of various layers. We often compare it with an onion.

• In the outer layer of the onion, are the symbols.
• The next layer consists of heroes.
• In the third layer, closest to the core, you'll find rituals.
• At the core of culture, is what we refer to as values.

Symbols include things such as food, logos, colours or monuments. Heroes can range from real life public figures, like statesmen, athletes or company founders, to fictional figures, such as Batman, in popular culture. Rituals can include activities done in your spare time, such as cricket or karaoke, or work-related rituals, such as meetings. Values are broad preferences for a certain state of affairs (e.g. preferring equality over hierarchy). Values are transmitted by the environment we grow up in, for example, interactions that we have with our parents or teachers showing us what is acceptable and what isn't.

As culture is a group phenomenon, we use it to analyse the behaviour of groups and make an assessment of the likelihood of groups of people acting in a certain way. That is to say, one person does not represent a whole culture and the culture does not represent the person. However, a group of people from one culture are more likely to act in a way that is appropriate for that culture. Subsequently, people from the same culture tend to act in a similar way, especially when they are together. From a business point of view, this makes culture an additional tool of management, with regards to groups of people.

What is organizational culture

Organizational culture is the way in which people in an organisation relate to each other, their work and the outside world, in comparison with other organisations. Your Organizational Culture shows how your organisation works: how things get done, the interactions between people, and employee relationships to their work and the outside world. The best organizations often place equal emphasis on strategy and culture. Such organizations create a culture that motivates their teams.

Eight Benefits of a well-defined Organizational Culture

Recruitment: companies with a well-defined culture often attract the best talent. Your HR team will agree that a strong organizational culture is one of the best ways to attract potential employees. Most potential employees will be keen to work for a company with a strong culture.

Retention: employee retention has become particularly significant in a booming post-pandemic market where employees have multiple job offers. High turnover is a typical symptom of an ineffective organizational culture. Cultivating a workplace that encourages employee participation is extremely vital.

Perfect fit: the first port of call for most job seekers is organizations that align with their values. For some it might be a company that allows flexibility, for others it could be a company that encourages a spirit of entrepreneurship.  A clearly defined culture allows the right talent to find you and make a significant contribution to your organizational goals.

Customer satisfaction: when your employees are satisfied, it encourages them to put their best foot forward and create the right buzz and energy. The result – exceptional products and higher standards of customer service that reflect their motivation. This has a direct impact on customer satisfaction.

Innovation: is derived from the Latin verb ‘innovare’, that translates to ‘renew’. Innovation in the modern context is the creation of new ideas, processes, or products. An organization where employees are highly motivated is likely to provide the perfect environment and platform for innovation.

Collaboration: a positive and effective organizational culture fosters a spirit of partnership and builds teamwork. It also enables much better communication and social interaction.

High employee morale: employee surveys of companies with a well-defined organizational culture almost always reveal a happy and motivated workforce.

Work-life balance: stress is one of the major factors that upsets work-life balance. A strong and positive organizational culture significantly reduces workplace stress and impacts employee productivity and well-being.

At Hofstede Insights, we offer you a structured approach to measure, understand and shape your organizational culture. Our approach is based on data.

Reach out us to build an effective and sustainable Organisational Culture

According to PWC’s ‘Global Culture Survey 2021’, 69% of senior leaders credit much of their success during the pandemic to culture. This survey spanned 3,200 workers in more than 40 countries and revealed that strong cultures drive better business outcomes. The report adds that during a year that necessitated major changes for companies around the world, more than two-thirds of respondents said that their culture helps change initiatives happen. Similarly, almost 70% who said that their organizations were able to adapt over the past year, attributed organizational culture as a source of competitive advantage.

A well-defined organizational culture can support your business strategy and define future success

It's clear that a well-defined organizational culture holds the key for future success. A fact endorsed by 67% of survey respondents who said that culture is more important than strategy or operations. Consider the same figures for 2013 – 53% and 2018 – 61%, and the role of organizational culture becomes even more significant. The success of any business strategy also lies in Organizational Culture as it motivates employees to take necessary actions.

Organizational Culture also plays a significant role in supporting business strategy. Companies with a strong culture are more likely to have engaged employees who go the extra mile to execute strategies and advocate for the organization’s objectives. Organizational Culture affects all facets of business – from the ways management implements rules and employees work, all the way to how people behave.

Are you looking for consultation on the perfect Organizational Culture for your company?

What is organizational culture

Organizational culture is the way in which people in an organization relate to each other, their work and the outside world, in comparison with other organizations. Your Organizational Culture shows how your organization works: how things get done, the interactions between people, and employee relationships to their work and the outside world. The best organizations often place equal emphasis on strategy and culture. Such organizations create a culture that motivates their teams. Organizational Culture is what differentiates your business, so it is important to know the various factors that contribute to your company’s culture.

Six factors that can contribute to organizational culture.

Culture is established by the evolution of events and practices that occur within your organization. Knowing what influences this can help you develop a strong culture that will support your business strategy and can empower you to achieve excellent results.

Leadership Style

How is your company being managed? What is the degree of hierarchy? What are the decision-making methods and the ways in which policies are enforced in your organization? These reveal the prevalent leadership style in your organization that impacts your culture.

Mission, Vision and Values

What is the purpose of your business? What do your products and services stand for? The business’ mission, vision and values mirror your intentions, and these are important factors that inspire your employees. It’s also important that your team understands this vision and uses this as a compass for their daily actions.

Work Environment

The kind of workplace you have defines how employees undertake their tasks and interact with their colleagues. For instance: is the workplace conducive for relationship building? What are some of the social norms of the workplace. All this also has an impact on their concentration levels and mental health too.

Communications

The way everyone communicates can influence employee-to-employee, employee-to-management and employee-to-clients relationships. It also demonstrates how people share information and show transparency.  It could also play out in day to day work scenarios; for e.g.: do employees trust the organizational complaint or grievance systems? Can an employee expect to receive regular feedback on their performance from his/her reporting manager?

Orientation

Is your business people-oriented, task-oriented or function-oriented? Knowing the priorities of your business can help you either maintain or improve the existing culture in your workplace.

Controls

Are there any job controls in place to guide the work?  Is your team closely supervised and is their work checked, approved or randomly sampled?

It’s clear that a lot of factors affect your culture. Even those things you find completely ordinary can impact how your entire organization behaves.

Hofstede Insights can help you build an effective and sustainable organizational culture.

Reach out to us to discuss the challenges faced by your organization and practical steps to align your Culture and Strategy.

The overriding message from PWC’s survey in more than 40 countries is that  strong cultures drive better business outcomes. 70% who said that their organisations were able to adapt over the past year also reported that their culture has been a source of competitive advantage. The majority (67%) of survey respondents said culture is more important than strategy or operations. They also agreed that top cultural priorities should include recruitment and retention, digitisation, health and safety and collaboration.

Are you looking for consultation on the optimal Organization Culture for your company?

Organizational culture is the way in which people in an organization relate to each other, their work and the outside world, in comparison with other organizations. Your Organizational Culture shows how your organization works: how things get done, the interactions between people, and employee relationships to their work and the outside world. The best organizations often place equal emphasis on strategy and culture. Such organizations create a culture that motivates their teams. Organizational Culture is what differentiates your business, so it is important to know the various factors that contribute to your company’s culture.

An organic approach means that management takes more of an observational approach to culture development so that culture develops naturally over time, or that the culture of the organization has not been considered at all. There are serious limitations and risks involved with the organic growth of your culture because it’s left to take its own direction – and this may not be aligned with your organization’s goals.

An active approach to Organizational Culture refers to organizations where the  management takes the lead in proactively defining and implementing an optimal organizational culture. This can involve leading by example, training sessions, consultant guidance and more. It’s important to remember that while Organizational Culture manifests over time on its own, taking a more active approach will help you strategically design it. With proper guidance on your part, you can shape it to benefit your employees, adapt to the current business landscape, provide better customer service and stand out from competitors. Hofstede Insights can work with you and help you actively design an optimal culture to support your business strategy, both in the short and long run.

Find out how Hofstede Insights can help you implement a more active approach to your organizational culture.

The old approach to Organizational culture doesn’t hold work in a post-pandemic world. Earlier Culture was seen as a function of HR. The top leadership gave the HR team a mandate to create an effective and optimal culture. HR then rolled out a mission statement that echoes the senior management’s mandate. It was more a ‘to do’ list that needed to be ticked off. The pandemic has changed intra-company interactions and dynamics. Culture is no longer an afterthought but is now intertwined with the company’s overall business strategy and direction. Culture building in the 2020s is everyone’s responsibility and yet can’t be left undefined allowing an organic approach without clear roles and responsibilities across the board to build an optimal company culture.

Everyone, across levels, has a role in impacting Organizational Culture. But if you are not paying enough attention to how your culture is developing and letting it evolve on its own, there’s a bigger risk that it will work against what you want to achieve as a business. These are some of the potential pitfalls in not taking an active approach: 

• Issues that revolve around Organizational Culture will not be effectively addressed and resolved.
• There will be a gap between your optimal culture (the one you require) and the actual culture – the one you have. 
• A culture without proper alignment can make your business disorganised by a lack of communication, create higher turnover and support poor customer relationships.

Find out how Hofstede Insights can help you understand if your current Organizational Culture is the perfect culture for your company.

• Management’s role is to design the optimal culture according to the organisation’s core values and needs. 
• The activities and initiatives you implement must also clearly reflect what your business represents to ensure that your Organisational Culture is on the right track to support your company’s success.
• As the leader, it’s important to perform regular cultural assessments to determine inconsistencies and develop solutions that will address the needs of your organisation. 
• It’s also critical to identify your ideal culture and share it with appropriate stakeholders so you can guide them, and they can play an active role in its development.

The involvement of every member of your team is critical in transforming the overall company culture. Here’s how they can pitch in: 

• By being culture advocates – Employees must display your company’s culture in the way they relate to other workers, how they work themselves and how they represent the business to the outside world. In short, live the culture. 
• By functioning as a team – Culture will only translate into success if everyone in the team is aligned and united with a common purpose
• By being accountable – If employees take accountability for making the necessary changes to keep the Organizational Culture working for the benefit of the business, they will produce better and more lasting results.

Reach out to us  to discover how Hofstede Insights can help you take a more active approach and take necessary actions to improve your culture.