Organizational culture is a term, which is used pretty broadly or randomly. Organizational culture is defined as a common understanding and shared approach to work based on beliefs, values, and attitudes. It is like an iceberg, maybe a very small part of it is visible mainly through vision, mission, statements, goals, strategy, policies, procedures, etc. However, there is an invisible culture which is the way actual work gets done and is based on beliefs, values, traditions, unwritten rules, feelings, etc.
A healthy Organizational culture fosters collaboration and motivates employees. In a recent survey conducted about 50% of the candidates searching for jobs give this as the topmost priority while deciding on potential employment options.
Organizational culture and shared values define how we approach our business, so naturally, it impacts relationships within and external to the organization.
The organizational culture provides a shared identity and purpose, thus the engagement level of employees is much higher. They take pride in being part of the Organization. Naturally, it helps in the retention of employees.
A healthy Organizational culture also provides a common platform for all employees to work together as an Organization to solve complex problems. There is no competition within but more collaboration. As a result, there is always improved productivity.
Lastly, you also notice that these Organizations will have employees who are proactive and they come up with new ideas or work improvement plans that help in innovation.
Now, how do we create a successful Organizational culture? It is always a top-down approach. The employees look towards the leader for guidance so the best way to go about this is
Step 1 – Clearly define your values and mission.
Organizational culture is the living, breathing embodiment of its core values and mission as mentioned above. This is the part visible to all external and internal to the organization. It is absolutely essential that we define them clearly and put them in writing and share them with all employees. Many CEOs tend to repeat this in every interaction with employees be it a town hall meeting or any other platform. Thus reinforcing with all employees the values, and virtues of the organization.
Step 2 – Build strong employee relationships
A recent report published shows that leadership is the foundation for a meaningful employee experience. It is proven that leaders play a crucial role in shaping the organization’s culture. As mentioned, the employees look towards the leader as a mentor. They are in a unique position to advocate the culture. Leaders who talk “with the employees” instead of “to the employees” help to elevate the employee experience and effective engagement
Step 3– Transparency
This is a very crucial step in this journey. Having defined values and mission and communicated to the employees, the leader needs to be absolutely transparent about the same. The leader needs to demonstrate that he strongly believes and displays in every activity related to work, e.g. if innovation is a core value, create an atmosphere where employees can think out of the box and innovate. Then clearly communicate with all employees about the results. In many Organizations, an honest team review is held after the completion of a project where team members share the successes and failures as a team, without pointing fingers and singling out individuals. This is a great learning experience for the team/organization as a whole.
Step 4 – Give autonomy to the employees
Micromanagement always hurts the Organization’s culture very badly. The employees need to enjoy the freedom to work and also should have adequate resources needed to do well. The leader also needs to ensure that there is no fear of failure within the Organization and they have the necessary psychological safety. A good Organization does not need to be told how to do things. Leadership is the art of getting things done by your Organization and also while on a turbulent path, hand-holding till you are out of turbulence.
Step 5 – Create Positive employee experiences
The employee experience is at the heart of any effort to understand/improve the Organization’s culture as they are intrinsically connected. Many experiences of employees and how they feel about these combined form the employee experiences. These include conversations, emails, Organization interactions, leader messages, etc. It is very important to remember that both positive and negative experiences will have an impact on Organizational culture. Research suggests that employees are Thirteen times more like to be highly engaged when they have positive employee experiences. Successful leaders try to create stories out of amazing WOW moments and share them with all employees.
Step 6- Rewards and recognition
Lastly, it is very important to celebrate small wins and give due credit where it is due. Highlighting an Organization or a customer wins accomplishments is a very inspiring way to make employees feel recognized and helps to boost the morale of the entire Organization/organization.
Organizational culture is more than a buzzword of a boardroom, definitely, it is worth investing in developing a positive Organizational culture to help recruit and retain the best talent which will in turn deliver outstanding results.