SET CULTURE AS THE STRATEGY TABLE OFCONTENTS EXECUTIVE When an organization’s culture struggles, the business does too.Organizational culture impacts employee retention, productivity, andperformance. Without a culture that sustains trust and communicationacross the organization, innovation is often stifled, employees may A rigid, dysfunctional, or toxic culture doesn’t simply drive down levelsof employee engagement, it takes their organization’s reputationand revenues with it. With so much at stake, an increasing number oforganizations are focusing more closely on creating and sustaining Organizations that set theirculture as their strategy arenot only characterized by In this research partnership between the Human Capital Institute andQuantum Workplace, we identify some of the practices and approachesto organizational culture that successfully drive results. We’ve foundthat organizations that set their culture as their strategy are not only They Have Proactive and Integrated HR Practices Instead of reactive HR programs targeting narrowly specificworkplace concerns, these organizations proactively addressemerging needs for the business and its people. HR initiatives are They Empower Ownership An organization’s culture is built on relationships and collectivecommitment. By democratizing the process of developing, changing,and supporting the organizational culture, employees feel activelyengaged in their organization, and their contributions to the practices They Are Committed to Employee Listening A comprehensive approach to employee engagement meanslistening to and acting on employee feedback. It involves gatheringemployee insights through engagement surveys, pulse and lifecyclesurveys, polls, and focus groups. Rather than marginalizing this Just as these organizations solicit feedback from their people, theyengaging performance feedback for employees at all levels of the They Measure Metrics that Matter Measuring and monitoring connections between people, practices,and business outcomes helps an organization generate sharedaccountability for its culture. Tracking employee and customer They Invest in Tools that Support Culture More tools aren’t always the answer. Instead, organizations withpositive and engaging cultures focus on blending the right tools tostreamline and simplify the collection and analysis of important metrics WHAT IS CULTURE? Under the right conditions, an organizational culture can promoteinnovation,12and employee performance,3enhanceagility, and accelerate change management.4A thriving organizationalculture is key for retaining talent and maintaining high levels ofemployee engagement, while growing corporate revenue.5 —Irene Indarte, HR Consultant, Globalscape Given its importance and its impacts on the business and its people,what, in fact, is culture? The short answer is…it’s complicated. There are seemingly as many definitions of organizational culture as there are organizations. Culture may be understood simply as “the waythings get done around here,”6or it may be viewed as a complex and integrated system of objects, values, beliefs, norms, and behaviors.7Nearly three-quarters of survey respondents (72%) rely on one or acombination of formal theories or definitions for organizational culture, A selection of survey responses to the question item: Summarizeyour preferred definition, or list the top sources of influence for your Culture Is… …the business’ personality—what’s valued, what’s expected, howwe interact with customers. It belongs to the whole organization.Leaders are responsible for safeguarding and maintaining it. In … …a set of clearly defined principles, values, and ways of workingcommon to all. People are held accountable to these and we …a set of beliefs, behaviors, and a mindset that we share and discuss. …our shared values articulated through a “common ground”statement emphasizing respect, integrity, innovation, openness, There is no “right” or “wrong” approach represented in these viewson organizational culture. Most recognize, however, that any culture,regardless of how it is defined, can have either positive or negativeimpacts on both the employee and customer experience, and produce Common Values “Leadership has to be willing to get the ball rolling, but thenaccountability comes with it as it rolls downhill… What we want is for Shared Accountability “We want to build values that not only help us in our work, but in life.We take time to celebrate each other.” Mutual Respect “The organizational culture can either be a tax or a dividend…but if theyare committed to the same goals for their culture, then it’s going to have Collective Commitment A positive and engaging organizational culture, centered on commonvalues, and reinforced by collective commitment, shared accountability,and mutual respect, requires active participation from every member of BARRIERS TO A STRONG ORGANIZATIONAL CULTURE Creating and sustaining a vibrant orga