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.
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.
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.
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.
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?
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.
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.