Rather than “business first, then people”, today we recognise that “people” are central to organisational success. Whether commercial or not-for-profit, a strong culture is the common factor in high performing organisations.
Creating a good culture is more than perks and inducements such as PlayStations in the staff cafeteria and free beer on Fridays (although these can help!). It's the way the company operates from the top down, and the bottom up. It's the humanity of the organisation, and an acknowledgement of the contribution everyone makes to its success.
An organisation with a strong culture is consistent in the way it practises its values and vision, has strong internal communications, high employee morale, and a desire for innovation knowing this requires taking calculated risks. The size of an organisation has a huge impact on its ability to manage, change or adapt its culture. With the majority of NZ businesses being small to medium enterprises (SMEs), it's easier for them to control their cultural environment.
3 reasons why a good business culture is good for business
1. Attract and retain top talent
- Enthusiasm and pride are contagious
- Employees want their 8+ hours at work to be fulfilling and constructive
- The employment market is competitive. You want to be candidates' top choice
2. Reputation sells
- The best advertisement for your company are the people who work in it. They share their work experiences with friends, family and associates
- Customers like to support and purchase from good businesses
3. Motivated employees = happy customers
- Great team spirit has positive energy
- Staff will happily go the extra distance to satisfy customers, and do it with a smile
- You want people keen to work, rather than filling in the hours between 8.30am-5pm while you pay them
- Customer loyalty = sales
How to create or improve your culture
1. Ensure Management have/do the following:
- A clear vision, values and direction for the organisation
- Lead by example
- Are honest, ethical and consistent in their behaviours
- Are positive, passionate and operate from the heart
For more on management, take a look at our article on the qualities of good leaders.
2. Encourage open communication flow, to find constructive solutions for business problems. There will always be challenges and issues that arise in every organisation.
3. Embrace the opportunity to learn and improve when mistakes occur and failures happen, and avoid the “blame” game. Regularly ask these questions so that you can continually improve:
- What did we do well?
- Where could we have done better?
- How can we improve?
- What is the action plan to fix it?
- Have we achieved our objectives?
4. Acknowledgement from the CEO down, that every role within the organisation is valued and that everyone’s contribution is core to success. Recognise and reward employee contributions.
5. Encourage innovation by empowering and inspiring employees to find better ways of doing things - after all, they are at the “coal face”. Great ideas can come from any employee, no matter what their job title, experience or qualifications.
6. Cultivate strong co-worker relationships. The goal of leadership is to build a cohesive team, that works together with enthusiasm and pride. Take a look at our articles on 33 Epic Ideas for Your Work Social Club (NZ) and 25 Ideas For Your Business Team Day (Auckland).
7. Recognise everyone needs to achieve a work/life balance. There are times when "life,” such as family issues, needs to take priority over “work”. Providing staff with flexibility and self-management is motivating.
8. Look for staff who fit with your vision and values.
9. Invest in talent development by providing training, education and career advancement opportunities.
10. Treat everyone in the workplace with respect and fairness. Embrace diversity without discrimination on race, religion or gender.
Does your business have cultural issues? Consider these indicators of a poor cultural environment:
- Counterproductive behaviours and conflicts
- Staff turnover (Read our article on reducing staff turnover)
- Poor internal communication, or staff who fear reprisals for honest feedback
- Ineffective management without vision and direction who micro-manage instead
- Continual errors and reduced profitability
For further reading see our articles: 7 Signs of a Thriving Culture. and Creating a Culture of Collaboration: The 12 Principles.
