We are creatures of habit and we are infamous for perpetuating bad habits. Imagine how these common bad habits, when repeated; permeate the culture of our workplaces. Now think of the impact good habits can make. What is affected? How do we feel? How do others respond?
In the article Keys to Organizational Success (3.1), Fred Kofman, VP at LindedIn, writes that norms of excellence are key to exceptional performance. These norms are developed from organizational values and serve as the standards for how we should operate. He cautions norms that are too general such as “be open, honest…” This does not instruct us on how to specifically solve issues; instead, it lays the groundwork for how we should behave. Professing these norms, creates a dialogue of – “If being open and honest is a staple in our office culture, then how do we conduct ourselves [regardless of the situation]?”
In sum, a consistent commitment to upholding the norms leads to a defined culture and research has shown that culture has a direct economic impact on business. Skeptical? Sounds fluffy? Companies with a vibrant culture produce happier employees, and happy employees outperform their competition by 20%.
First, let’s define culture. According to Merriam Webster, culture has nine definitions. In the workplace, culture is “a way of thinking, behaving, or working that exists in a place or organization.” Culture also describes the existence of “a particular society that has its own beliefs, ways of life, art, etc.” So what do we mean by success? In this context, success is many fold. Business success can look like: high levels of employee satisfaction, a high ROI based upon the amount of time the team allocates for business activity, revenue that is trending north, more client referrals, clients that expand their wallet share for our services, and … fill in any number of other key performance indicators for the company.
Earlier we alluded to research that shows a correlation between culture and economic impact. In the spirit of upholding the honesty norm cited earlier, we should mention that researchers have struggled with designing refutable hypotheses to test the broad subject of culture. In an article published in January 2006 by the Northwestern University’ Kellogg School of Management, the authors site evidence on both sides of the argument – “the effects of culture on institutions do not have an economic payoff” and when evaluating economist, Guido Tabellini’s research on questions from the World Values Survey, the presence of “’good cultural values like trust, beliefs in individual effort, generalized morality, and low obedience,” suggest large economic payoffs.
The authors focused on beliefs and values in the context of religion, race, ethnicity, and ideology, which we choose to identify with and/or follow, and personal history and physical makeup. The elements, they suggest, are beyond our control, and are a part of all of us and we bring these elements to work each day. Sometimes they overtly show up and sometimes they are more subtle. On some level, they always influence how we behave.
We know organizations are full of individuals who make independent choices that collectively make a big impact. Some of us row with the current, while others turn the oar another way. We can point to cultural make up, our beliefs, and values as the pinnacle of action. But ultimately it is our collective action that creates the largest ripples including the economic wellbeing of an organization.
Therefore, culture plays a distinct role in company and personal success, so let’s commit to norms and live into our values in order to create growth environments, because culture has roots in every aspect of your business.
