7 reasons why organizational culture is important
Why does it matter that your organizational culture is one way rather than another way?
It turns out it matters a lot. Organizational culture is hugely important to the success and overall health of your company, your people, and your customers. So it’s helpful to spend time considering why your company’s culture is the way it is, and why it’s important that it stays that way (or changes).
Let’s take a look at seven reasons why organizational culture is important.
7 reasons why organizational culture is important
1. It defines your company’s internal and external identity
Here’s a thought exercise: write down on a piece of paper five attributes that best describe your organization’s culture. You might write something like “good work-life balance” or “lots of meetings” or maybe “team-oriented.”
2. Organizational culture is about living your company’s core values
Your culture can be a reflection (or a betrayal) of your company’s core values. The ways in which you conduct business, manage workflow, interact as a team, and treat your customers all add up to an experience that should represent who you are as an organization and how you believe a company should be run. In short, your culture is the sum of your company’s beliefs in action.
3. Your culture can transform employees into advocates (or critics)
One of the greatest advantages of a strong organizational culture is that it has the power to turn employees into advocates.
Your people want more than a steady paycheck and good benefits; they want to feel like what they do matters. And when your people feel like they matter, they’re more likely to become culture advocates—that is, people who not only contribute to your organization’s culture, but also promote it and live it internally and externally.
4. A strong organizational culture helps you keep your best people
It should come as no surprise that employees who feel like they’re part of a community, rather than a cog in a wheel, are more likely to stay at your company. In fact, that’s what most job applicants are looking for in a company.
5. A well-functioning culture assists with onboarding
Organizational culture also has the potential to act as an aligning force at your company. This is particularly the case with new hires who, more often than not, have put some considerable thought into the type of culture they’re entering into. The culture at your organization is essentially a guiding force for them, so it’s important that it starts with onboarding.
6. Your culture transforms your company into a team
A successful organizational culture brings together the people at your company and keeps them aligned. When your culture is clear, different perspectives can gather behind it with common purpose. The culture at your organization sets expectations for how people behave and work together, and how well they function as a team. In this way, culture can break down the boundaries between siloed teams, guide decision-making, and improve workflow overall. On the flip side, a toxic organizational culture has the capacity to do just the opposite.
7. Culture impacts performance and employee wellbeing
Reports show that organizational culture has a direct impact on performance and, more importantly, your employees’ wellbeing. A healthy culture addresses both of these areas by finding an appropriate balance based on company values. Does your company stress performance to such a degree that you feel like your physical and mental health are being overlooked? There might be instances when that may not be a problem, but for the vast majority of cases, it’ll have a negative effect on your company.
These are just a smattering of reasons why organizational culture is important, but they’re a good starting point to get you thinking about what your own organization brings to the table. What’s important at your company might be totally different depending on the situation.
So what are your next steps? Find out what aspects of your organizational culture are most important to your people, and think about performing a culture audit. Your goal is to discover what your people value most and support that. Congratulations, you’re one step closer to creating an extraordinary workplace.
References:
https://blog.jostle.me/blog/why-is-organizational-culture-important