A CULTURE “BY DEFAULT” OR “BY DESIGN”
An organizational culture can be summed up as “the way we do things around here”. All companies have one. The question is whether it favours your organization’s goals or not. It’s important that you, as an organization, choose whether you want your culture to be “by default” or “by design”. The latter meaning that you work strategically to shape your culture, ensuring it aligns with your goals. During our years as organizational consultants we’ve seen loads of examples of corporations that have reached and surpassed their financial goals by investing in their culture. They’ve understood that organizational culture is a prerequisite for achieving their objectives.
Examples of the correlation between organizational culture and improved financial results
Gallup
For years Gallup has analysed employee engagement at organizations and workplaces around the world. Only about 14 percent of employees in Sweden are fully engaged. What does that mean in terms of productivity for the 75 percent that aren’t? Or the 11 percent that are actively unengaged? Can you as an organization afford having staff that aren’t as productive as they could be?
““Throughout Western Europe, employee engagement levels are relatively low. Regionally, just 10 percent of employed residents are engaged — involved in and enthusiastic about their work.”
Fortune Magazine
Fortune 100 Best Companies to Work For, produced by Great Place to Work in collaboration with Fortune Magazine, shows three times the return for their listed companies. What would that mean for your organization?
“Over the 23 years we’ve been publishing this list with our partners at Great Place to Work, we’ve found three things to be true. Inclusion has become the gold standard for employee-centric companies. The bar rises every year. And no, workplace happiness is not a myth.”
Great Place to Work Sverige
Great Place to Work is currently the largest ongoing workplace study. GPTW has compared listed companies on their list of Sweden’s Best Places to Work (large companies with no less than 250 employees) with mid-sized companies (source: Svenskt Näringsliv and SBC). The comparison clearly shows that having a strong structural capital and a high degree of trust is reflected in the financial result. Another reason to invest in your organizational culture.
“Sweden’s Best Places to Work – Operating margin 9,3% | Profit margin 7,5% | Sick days 2,1% | Average Swedish Companies – Operating margin 3,8% | Profit margin 4,3% | Sick days 3,9%”
The Neuroscience of Trust
The study “The Neuroscience of Trust” carried out by Paul. J. Zak also shows that employees with a higher level of trust will generate benefits including increased productivity and commitment. This quote is from his article in Harvard Business Review:
“Compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout.”