In an intensive competitive business landscape, companies constantly search for ways to attract top talent, boost productivity and retain satisfied employees. But in an effort to “appear” committed to employee’s positive experience, companies too often settle for cultural counterfeits – free food and a “fun vibe” become the cosmetic version of a deeply meaningful employee experience where everyone genuinely feels connected to a larger purpose and empowered to do their best work. Further, these programs are often intended to boost employee engagement scores or other indexes organization’s use to measure employee experience. But as the war over hybrid work and required office presence rages on, too many organizations are missing what their top talent really wants. Recent Microsoft research reveals that what matters most to employees is moments that matter – meaningful connections with their colleagues, work that builds a sense of purpose, and maximum flexibility.
Shaping organizational culture goes much deeper than superficial activities that brush on the appearance of an engaged workforce. A strong company culture can yield great performance, retention and engagement, but only if you know how to build it over time.
The Culture Long Game
Cultures are built over time with repeated attention to shaping the behaviors that drive success and meaning. Garry Ridge, former CEO of the WD40 Company, and renowned for shaping one of the most acclaimed cultures in the corporate world, suggests, “Culture isn’t sprinkling fairy dust on people and suddenly they become happy. Creating a great culture is a bit like a petri dish. You have to put in the right ingredients to grow the right culture. And you have to redirect behavior that is putting toxins into the petri dish. Executives must do this with the utmost urgency. Every day. When it comes to shaping culture, time is not your friend.” The WD40 Company has enjoyed record employee engagement results, including 2022’s 93.5%.
Over time, fostering commitment to shared cultural values enables companies to communicate that they are not just providing products or services, but contributing to something more significant — an idea that bolsters both customer loyalty, as well as employee alignment. The WD40 Company has enjoyed the fruits of that effort in outstanding market performance, yielding a compounded annual growth rate (CAGR) of 17% over the last decade – well above its industry average. Says Stan Sewich, former Chief People Officer of the WD40 Company, and author of Engage: How the WD40 Company Built an Engine of Positive Culture, says, “You don’t produce results like that overnight. People must feel they have a part to play and a contribution to make. They feel they belong. Leaders must understand culture as the collective behaviors that are reinforced and rewarded by the organization and its leadership over time. When leaders try and leverage culture only to get something, it backfires. A great culture is a result, not just a means to an end.”
Culture drives performance and shapes employee experience
An inclusive and diverse company culture promotes innovation by encouraging individuals of different backgrounds and perspectives to openly exchange ideas. Creative ideas emerge from the combining of different experiences and skill sets.
Without a foundation of respect and collaboration created through an inclusive culture, organizations risk losing essential input from underrepresented employees which could ultimately “change the game.”
Another oft-overlooked aspect of a well-rounded culture is resilience. No company is immune to challenges, whether they be shifting markets or unexpected crises, such as the COVID-19 pandemic. When organizational ethos emphasizes adaptability and forward-thinking perspectives, employees are more likely to rise to challenges with resourcefulness, instead of skepticism or passivity.
Arjun Sharma, a leading supply chain professional with Google, spoke in no uncertain terms about the importance of resilience in his line of work. “Supply chains are prone to disruptions — this is no secret,” noted Sharma. “My team is very aware of the up-and-down nature of our industry, and they’re prepared for whatever comes their way. They’re invested and confident, feeding into our successful company culture.”
Leaders must set the example
In addition to these critical benefits beyond employee engagement itself, it is crucial to recognize the integral role leadership plays in cultivating company culture. Leaders who embody the organization’s values themselves serve as powerful examples for their employees, creating a domino effect of alignment throughout the team hierarchy.
“Culture starts with the leader,” Sharma continued. “As leaders, it’s essential for us to remember that employees will follow the examples we set. If it’s a bad one, it will lead to lower-quality work. Here at Google, we pride ourselves on top-quality work from the top to the bottom of the organization, as every employee is an important piece of the puzzle.”
Organizational values must be deeply embedded within every facet of a company’s operations, from onboarding processes to everyday decision-making. These core values guide the organization’s strategies, behavior and, most importantly, its culture.
A clear understanding of these guiding principles reduces ambiguity in employees’ minds and instills a sense of belonging and purpose in them. Strong organizational values resonate at every level of the company, right from stakeholders and leadership to managers and entry-level employees, effectively weaving a coherent company culture.
Davin Salvagno, CEO of Purpose Point, urges clients to understand that “culture isn’t something you do to people or for people. It’s something you create and live with them. If leaders aren’t modeling the core values of the organization, great people aren’t going to stay. It’s that simple.”
This October 24-25, at San Diego State University, Davin and Garry are hosting the Culture Forum, a gathering of leaders to immerse themselves in the critical conversation about what it means to shape the very best cultures in the world.
Strong Culture enables everyone to thrive
Another critical aspect of company culture revolves around learning and development opportunities made available to employees. The modern workforce thrives on continuous learning in order to adapt to rapid technological advancements and changing market landscapes. Great talent wants to continue to level up. When cultures value continuous learning, great talent wants to stay and drive even greater performance. It’s a virtuous cycle. But when cultures actively deter learning, protecting the status quo or steeped in the hubris of success, learning becomes dangerous. Says Garry Ridge, “Leaders who protect people from growing by not sharing honest feedback are doomed to repeat failure. And leaders who are threatened by those they lead becoming even better than them hold back great talent from reaching their full potential. Great leaders work hard every day to create opportunities for everyone they lead to excel well beyond them.”
Providing employees with accessible development, mentorship programs and knowledge-sharing platforms facilitates both personal growth and larger organizational advancement. It empowers employees with resilience against future challenges, directly translating into a prosperous company culture.
To invest in great culture, organizations must treat employee engagement as an outcome, not a goal. It’s one of many metrics indicating that your culture is healthy, vibrant and strong. Focusing solely on it imperils the health of a culture by masking deeper pathologies that engagement surveys simply won’t detect. By fostering a culture that encompasses and measure shared values, inclusivity, innovation, adaptability and strong leadership, organizations can unlock benefits far beyond employee satisfaction alone.
Serve all the pizza you want and play as much ping pong as you like. Just don’t tell yourself that it’s evidence of a great culture. But if a great culture is what you really want, push past the superficial activities and dig deep into what shapes employee’s behaviors every day. And where you find toxins, have the courage to root them out. As your culture strengthens, never forget that shaping a powerful culture is a privilege you have to earn every day.
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