I have recently been presenting and participating at several human resource conferences where most of the presentations revolved around culture, and the feedback confirmed that participants want to hear more about it.
Culture can be defined simply as “the way things are” in an organization. It is the collective actions, behaviours and beliefs in an organization, and it influences employee attitudes and behaviour because it reflects the values, beliefs and behavioural norms they use to give meaning to situations they encounter.
More than 85 per cent of executives say their culture isn’t where it needs to be, according to a 2015 study from the Duke and Columbia business schools. The gap between strategy and culture leads to failed change efforts, unattainable goals and unwanted behaviours.
Rob Howard from a @CultIdeas presented some extremely interesting research he and others have done at the Imagine Your Workplace conference in Toronto last month. He discussed the Parnassus Workplace Fund, which invests in large-capitalization companies that represent Parnassus’ clearest expression of environmental, social and governance investing. The portfolio of companies must offer outstanding workplaces and must not be engaged in the extraction, exploration, production, manufacturing or refining of fossil fuels.
This workplace focus can result in significant exposure to technology companies, many of which are leaders in offering positive and innovative workplaces. Over the 10 years preceding February 2016, the Parnassus Endeavor Fund had an average annual return of 11.13 per cent, putting it in the top one per cent of U.S. mutual funds. Set up 13 years ago with just $600,000, the fund now manages $1.3 billion.
Many of the bosses in today’s workplaces think of employee engagement strategies, total health initiatives or wellness as nice add-ons or something to do in the undetermined future. Random acts of wellness are common practise, and most offer a lunch-and-learn or a fitness challenge. But after they’re done, they question the return on investment or value of their investment.
The Parnassus Endeavor Fund is a shining example of why looking after your most important resource, your people, is an essential service and should be taken seriously. It must include strategy, implementation and an evaluation plan. Engaged employees who are in a culture that cares about the health and well-being of their people will reap the financial benefits that come with that. It is the best investment a company can make.
Company culture is going to happen regardless of whether you manage it or not, so why not foster it and improve it? You can take measures to ensure your employees are growing into a cohesive team with a shared vision.
The best cultures do not happen by accident, and the cultures of high-impact organizations are chosen, created and shaped. Creating and evolving culture takes deliberate and focused action. It demands organizational learning, intentional leadership and personal commitment.
Either you lead your culture, or your culture will lead you.
The Center for Creative Leadership looked at tons of research to see what would emerge with high-impact cultures. They found high-impact cultures enact three key factors:
Direction. High-impact cultures achieve widespread agreement on goals and aims. Where are we going?
Alignment. High impact cultures create co-ordinated effort. How do we get where we want to go?
Commitment. High-impact cultures sustain passion. How do we stay inspired and engaged to reach the destination?
People want to feel that they are part of something bigger than themselves. Very few see their jobs as a means to get a paycheque. Most invest in their career and put a lot of effort into what they do for their living.
However, workplaces are not and cannot be a utopia. There will always be periodic conflict, tough times and upset people. Culture is part of what helps keep the business on the rails in these times, and solving problems requires people who are able to have open and honest conversations in a safe environment and move forward toward a common vision.
The culture of an organization is more than bringing cake for someone’s birthday or having a great Christmas party. It is having a respectful workplace, strong leadership and a common purpose that can prevent wrong thinking. The interesting thing is that a strong culture can prevent the wrong people from entering the organization.
You can have the words posted on the wall and in your company’s documentation, and you can talk about culture in meetings, but there is a soft component. If your culture is clicking, you feel it. There are more good days than bad. People are pushing each other to be better. People are posting about other colleagues’ accomplishments, not their own.
Take culture seriously and people will take your company seriously. Be part of the solution rather than part of the problem.
Darren Steeves has built his career helping Olympians and Olympians at heart reach their personal and professional performance goals.
