How to Invest in Company Culture
Investing in company culture is the key to performance and success. Company culture is unique to every organization and encompasses all of their attitudes, ideas, and attributes. Company culture is shown in the actions and behaviors of every individual who works for the company. According to a decade-long study, firms that have a strong focus on corporate culture saw massive growth in revenue, stock price, net income, and job growth. Although 72% of company executives say that culture is the key to performance, only 32% believe that their company culture is aligned with their business strategies.
Investing in cultural transformation can produce large rewards. Cultural transformation comprises aligning employee desires and business strategy, instilling a compelling vision for the future, and rallying support through active communication. Focusing on cultural transformation can bring an 85% net profit increase after 5 years and increase workforce growth by 25% in just 3 years. Cultural transformation can also bring a 50-point increase in employee engagement, which brings 10% higher customer ratings, 17% higher productivity, 20% higher sales, and 21% higher profitability.
Although a positive outcome is expected in all digital transformations, less than 15% are successful. Employees are more likely to resist cultural change when there is a poor corporate culture. If employees feel overburdened, change often brings new responsibilities and they fear they will face more work with no reward. Additionally, if past efforts to change have failed, this can lead to unintended consequences, compromising employee trust. New technologies can also expose employees who lack the necessary skills, prompting the fear of job loss and making the employee less likely to buy into transformation efforts.
When deciding to invest in company culture, it is important to ask if your rewards align with vision fulfillment across the organization, if company culture unleashes employee passion, and if there is a leadership program that cultivates the right values. Investing in the strategic imperative, skill training, job alignment, reward success, and future vision are all cultural transformations that matter. Ascension Transformation Solutions provides your company with the means to invest in successful business and cultural transformation.