Company culture is both real and complex.
A small company generally takes its lead from the founding members, but as the business grows, new people come in and this can cause disruption – both to original members who find themselves a layer further away from the founder and those that might feel overlooked when outsiders take up senior, as well as for the culture as a whole.
Preserving a strong culture is where management really plays an important role – having a clearly articulated vision and values, hiring people for fit as well as skills, the expanding leadership maintaining a personal open-door policy and being open and transparent about what they’re doing, and public recognition of employee actions.
All these things are an integral part of a strong company culture. By treating people well – not just in terms of financial reward, but of openness and strong bidirectional communication – a team feels valued and this pays dividends in terms of productivity, customer satisfaction and, of course, the bottom line.
And this is even more important in this era of “The Great Resignation,” where managing staff losses and the costs of replacement is going to be so critical.
This study I referenced a couple of months ago shows how a strong corporate culture has a significant impact on company revenue and income – companies were tracked over an 11-year period; those with a strong culture averaged more than 4x the revenue growth, a massive 700% the net income growth and over 12 times the stock price growth of those without.
The evidence is clear – good and strong company culture makes for a better business.
#BusinessFitness #Leadership #Loyalty #Management #Motivation #People #Productivity #Profitability #Teams #Valuations #QOTW
You might enjoy these other short posts around this topic:
- “Happy employees lead to happy customers, which leads to more profits.” — Vaughn Aust
- 1 Thing That Great Leaders Do
- Leaders Who Coach Get Great Results
- Will Your Business Survive “The Great Resignation?”
- Leadership in Times of Crisis – 5 Cornerstones of Effective Action
- 3 Things You Must Do to Keep Your Top Performers and Your Company in Great Shape for the New World of Work
- Just 15% of Employees Work at Their Full Potential – Are Yours?
- Are Staff Leaving Because of Bad Management?
- Leading a Business in the “New Normal” Working From Home Age