Why does company culture matter?

Charlie Coode, Founder and CEO of Culture15, explains why prioritising culture over productivity and profits is crucial for organisational success. Gallup’s research shows that employees connected to their company’s culture are more engaged, more likely to recommend it, and less prone to burnout

CREDIT: This is an edited version of an article that originally appeared on SME Today

Leading by example

It’s important for leaders to embody company values. Deloitte’s report highlights that strong organisations have leader-led, unique, and simple core beliefs. Yet only a fraction of employees feel their leaders uphold these values, underscoring the need for leaders to personally demonstrate the culture they want to create.

Aligning values with actions

Deloitte’s findings reveal a gap between talking about culture and embedding it into operations. Tangible examples of value adoption are crucial. Take Uber and Wells Fargo as cautionary tales: Uber saw unethical behaviour permeate the organisation, while the Wells Fargo’s high-pressure sales culture resulted in the creation of two million fake accounts, tarnishing its reputation permanently.

Top-down influence

Leadership’s active involvement in cultural evolution is essential. While HR handles compliance, leaders drive broader strategies that align culture with organisational goals. Gallup’s study highlights that managers directly influence employee engagement, underscoring the importance of leadership transparency and authenticity.

Communication is key

Effective communication is central to fostering a cohesive cultural identity. Leaders must consistently articulate company values, mission, and vision, promoting trust and engagement. Strong storytelling not only boosts employee satisfaction but also enhances recruitment rates.

Building a stronger leadership culture

Organisations must prioritise value-led leadership at all levels. The Arbringer Institute emphasises the significance of mindset in leadership development, correlating it with meaningful work and employee retention.

Analysing current culture, prioritising values, and modelling desired behaviours are essential for organisational success. By aligning leadership actions with company values, businesses can achieve higher productivity, profits, and performance while nurturing a thriving organisational culture.