We
define corporate culture as the way work truly gets done in an organization
on a day-to-day basis.
Think
of culture as the collective attitude, assumptions, purpose and behaviors of
a company's workforce. Your workplace culture answers the fundamental
question of "how?" It exists in every company whether by design or
by default.
Does
Culture Matter?
Yes.
Here is why...
Research
by Harvard established that an effective culture can account for up to half
of the differential in performance between organizations in the same
business. As Peter Drucker famously said, "Culture eats strategy for
breakfast." And the global consulting firm Watson Wyatt found culturally
aligned organizations return as much as 286% more value to stakeholders.
Our
own organizational alignment research at 410 companies across
eight industries found cultural factors account for 40% of the difference
between high and low performing companies in terms of growth, profitability,
customer satisfaction, customer retention, leadership effectiveness and
employee engagement. Indeed, culture matters.
The
Link between Culture and Strategy
In
general, strategy must go through culture to get results.
We
define business strategy as the clear and compelling choices about where the company
competes and what critical few actions it takes to succeed. A successful
strategy allows a company to perform beyond the sum of its parts. It answers
the fundamental strategic questions of "why, what, where and who."
First, consider strategy as the big problem you are solving or the big
question you are answering. Then decide how to ruthlessly prioritize your
time, money, people and energy to make it happen.
The
Three "C's" of a High Performance Culture
Based
upon over 25 years of research and experience, we have identified three
critical and interrelated components required to create a workplace culture
that matters:
While
each is essential, each must be assessed and shaped very differently if you,
and your leaders, want to create a high performance culture.
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About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
