Business owners and other members of a company’s executive leadership team historically focus their attention and resources on improving financial performance … tangible “Hard-Side” results. There is an almost endless list of quantifiable measures captured on various spreadsheets, tracking both individual and team performance. Here are some.
|Revenue||Profit Margins||Client Growth|
|Market Share||Units Sold||Cost of Marketing|
|Cost of Sales||Production Costs||… and many more|
“Soft-Side” components are mostly cultural intangibles, which are harder to quantify. Here are just a few.
Leadership Committed to Innovation and Excellence
Employee Buy-in to Company Vision and Mission
Engaged Employees (Empowered to Adapt)
Organizational Transparency and Accountability
… there are many more
While a company’s culture is sometimes seen as a low priority—as far less than a pressing requirement—it really isn’t. A positive company culture—fully supported by the entire leadership team—can be a powerful force inside a company, empowering its employees to accomplish so much more.
Think of a positive company culture as a workforce multiplier.
There is empirical evidence to support that statement. Harvard Business School a few years ago, in a 11-year study of a variety of businesses with either positive or negative cultural attributes, concluded that:
Positive business cultures averaged 682% growth.
Negative business cultures averaged 166% growth.
The difference is striking. Investing in and supporting the development of a positive company culture … literally drives more growth.
Even if organizational performance measures are consistently meeting established business goals and objectives, strengthening company culture can dramatically improve those measures even more. Big change doesn’t happen overnight, but small changes can quickly establish new directions.
What cultural changes are most needed in your business?