It’s all about the Culture!

Jeff Jarvis, in his book “What would Google do?” writes, “There is an inverse relationship between control and trust.”

 

What needs to be understood is that building trust revolves around mutual sharing and transparency. The equation is simple; trust is correlated with culture! It is surprising to know that approximately 75 per cent of organizational heads have identified that having a positive organizational culture is very important. According to a recent survey, “the most crucial factors for organizational development are strategic alignment and a culture that supports innovation.”

 

Many people wonder how building a strong culture could be necessary for a company’s success. How can a company’s culture contribute to an organization’s success? Well, here’s your answer. The organizational environment that affects its employees’ communication, interaction, and psychological experiences all contribute towards a culture. It is quite evident that the foundation of a company is made by the culture. Hence, if the foundation is right, the company is in good hands. Academicians argue having a strong organizational culture positively affects the company’s success. This has been proven without a doubt in contemporary times. Google’s introduction of flat and leaner structures encouraging a culture based on employee creativity resulted in production of the world’s most innovative products. Toyota’s quality control program initiated an empowering culture where each employee could stop an entire assembly line thus hugely decreasing the turnover rate. Southwest Airlines’ ‘customer first’ culture made it the most profitable airline of the country, despite an economic decline . These examples simply boil down to one basic fact – You need a strong and productive culture to develop a strong organization.

 

Since culture is so significant for organizations of today, the next point to ponder on is how can an organization nurture a productive culture?

 

Aligning with Strategy: The starting point is with the strategy of the company; align the culture with the strategy and all the pieces of the puzzle fit together. ZARA aligned its culture with its strategy of innovation to adopt to modern trends and is thus progressing every day.

 

Building Awareness: Employees are an important part of the culture of a company. If these employees are aware of the culture of their organization, they can play their part in creating a productive culture. Employees are in a better position to demonstrate their organization’s cultural values when they are aware of the key strategies, values, structure, communications, stance on employees and customers.

 

Measuring Culture: Finally, the key here is continuous measurement and feedback to check if the culture is working in your favor. You will know your culture is going in the right direction if there is low turnover rate, less absenteeism, loyalty of employees, creativity, happier employees and customers.

 

Do you think your company has developed a strong culture for itself? What is the standout factor from your company’s culture?

 

References:

http://www.businessinsider.com/southwests-founder-discusses-its-culture-2013-1
http://www.organicworkspaces.com/pdf/What_is_Organizational_Culture.pdf
http://blogs.hbr.org/2013/05/six-components-of-culture/

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3 Responses to It’s all about the Culture!

  1. avatar Usman Idrees says:

    The article adeptly emphasis upon the benefits of having a culture that serves employee and the organization mutually.

    Open and creative culture which encourage innovation is a strong tool for better risk management. Employees in such collaborative environments are more likely to suggest ideas, convey negative feedback and shortcomings to the top management. This give the company an opportunity to be proactive rather than living in a fool’s paradise where no bad news reaches the ears of the top management and they live under the fallacy of a hunky dory artificial world.

    True and fair view acts as critical input for policy makers and align their business model. Companies that do not enjoy the luxury of open environments eventually learn it through the hard way and at times face disasters that may go on to threaten its very existence.

  2. avatar salika says:

    how there is an inverse relationship between control and trust ..??if control is strong then trust will also increase so there is a direct relationship …

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