What Is Organizational Culture?
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Most workplaces want to create an environment that inspires employees to be motivated in their work and engaged in their job. This environment is created by how they communicate, what expectations they set, the way managers lead, and what everyone thinks of the company and their job. The result is what we call Workplace or Organizational Culture. One of the many challenges that come with trying to create a workplace culture that fosters employee engagement and motivation is the lack of understanding of how a strong workplace culture is built. The most common mistake we see when attempting to improve workplace culture is to take a single action, unattached to any larger effort or strategy, and implement it without considering if the current environment will allow the action to be successful.
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What Is Organizational Culture?
- 2. www.operations.roman3.ca What is Workplace Culture • Workplace (or Organizational) Culture; is the shared values, belief systems, attitudes and the set of assumptions that people in a workplace share. • This is influenced by leadership and the strategic organizational direction, shaped primarily by management.
- 3. www.operations.roman3.ca Often overlooked, but incredibly vital • Due to its intangible nature, workplace culture is often undervalued in its influence on an organization's productivity, profitability, and long-term success. • Too often we get caught up on the short term issues: • “How can I fill my current vacancies, or increase my competitive edge, or retain the best talent.”
- 4. www.operations.roman3.ca Culture is How… • Talent attraction, employee well-being, change management, workplace safety, remote working, and profitability are all heavily dependent on your workplace culture. Culture is as essential as electricity • Electricity is what powers our equipment, our buildings, our communications. Without it we are just sitting cold, in the dark. • Workplace culture is what powers the people. The people are what make our products, provides our services, and people are what powers our business.
- 5. www.academy.roman3.ca Leaders who prioritize workplace culture saw 2X the annual growth, of their peers, over a three years period. - Heidrick & Struggles Aligning Culture with the Bottom Line: How Companies Can Accelerate Progress (2021)
- 6. www.academy.roman3.ca 69% of organizations that adapted amid the pandemic say culture offers a competitive advantage. - PwC Organisational culture: It’s time to take action (2021)
- 7. www.academy.roman3.ca When it comes to predicting a company’s employee turnover rate, Culture is 10X more effective than Compensation. - Massachusetts Institute of Technology Toxic Culture Is Driving the Great Resignation (2022)
- 8. www.academy.roman3.ca Culture drives Loyalty. Nearly 50% of employees would leave a weak company culture for as little as a 10% raise. - TINYpulse THE 2019 EMPLOYEE ENGAGEMENT REPORT: The End of Employee Loyalty (2019)
- 9. www.academy.roman3.ca Only 28% of managers report that they understand their organization’s culture, and only 19% believe they have the “right” culture. - Deloitte Making culture and engagement work for you (2016)
- 10. www.academy.roman3.ca Only 29% of employees believe they have a successful workplace culture. - TINYpulse THE 2019 EMPLOYEE ENGAGEMENT REPORT: The End of Employee Loyalty (2019)
- 11. www.operations.roman3.ca How Is A Workplace Culture Built? • What makes a workplace culture successful is often difficult to visualize. • A big part of not understanding how to create a successful culture comes from protecting the status quo.
- 12. www.operations.roman3.ca Learn more…. • See whole presentation for free… • https://youtu.be/pJTRyuMdD-A • Visit our Knowledge Suite… • https://www.academy.roman3.ca/knowledge-suite/
- 13. www.operations.roman3.ca Or, book at chat with us… Book your a free follow up with us. We can help you get started. Who Will Benefit? Supervisors and Managers HR Professionals Owners or Executives
- 14. www.operations.roman3.ca Contact Us • Book your free follow up chat: https://calendly.com/jamesschofield/free-consultation • Email us at: info@roman3.ca
- 15. www.operations.roman3.ca About Roman 3 Operations • Roman 3 is an Organizational Development Training and Advisory company located in the Annapolis Valley, Nova Scotia. • We specialize in helping organization add PEP: • Performance • Efficiency • Productively or as we like to describe it, the “People Side of Productivity”.
Editor's Notes
- Before Slide: So, let’s start at the beginning. What is workplace culture? Well…(read slide) After Slide: Workplace culture is the atmosphere, norms, and expectations that govern the workplace. If corporate and HR policies are the law of the workplace, culture is the society that lives and workers there everyday. But because culture is not something we can hold, move, or see, it is often taken for granted. Citation: https://www.forbes.com/sites/pragyaagarwaleurope/2018/08/29/how-to-create-a-positive-work-place-culture/?sh=2563a0204272
- Read after Bullet 1: Sometimes when the topic of workplace culture is discussed within the executive community, it is not always understood and given the respect it deserves. When we are talking with senior leaders in initial conversation about workplace culture, we will sometimes hear dismissive statements like its just “the warm and fuzzies” or trying to create a “coombia” atmosphere. When we talk about the need to create a workplace that supports a strong and inclusive culture, it is not uncommon for someone to say something like, “yeah, yeah I get that happy employees are important, but how can I… fill my current vacancies, or increase my competitive edge, or retain the best talent.” This can be a challenging barrier to overcome. But by aligning the outcome of Workplace Culture to these specific pain points, we can shift the perspective. We will look at some data that builds that connection in just a minute. But it is vital that people understand that…(click) Read After Bullet 2: There can be real lack of sophisticated understanding when workplace culture is dismissed as “making employee’s feel good”. I like to compare the role that culture plays on the workplace as being as essential as electricity. Electricity is what powers our equipment, our buildings, our communications. Without it we are just sitting cold, in the dark. Workplace culture is what powers the people. The people are what make our products, provides our services, and people are what powers our business. Dismissing workplace culture as “just the warm and fuzzies” is like dismissing electricity as “just keeping our lunch cold in the fridge”.
- Read after Bullet 1: Sometimes when the topic of workplace culture is discussed within the executive community, it is not always understood and given the respect it deserves. When we are talking with senior leaders in initial conversation about workplace culture, we will sometimes hear dismissive statements like its just “the warm and fuzzies” or trying to create a “coombia” atmosphere. When we talk about the need to create a workplace that supports a strong and inclusive culture, it is not uncommon for someone to say something like, “yeah, yeah I get that happy employees are important, but how can I… fill my current vacancies, or increase my competitive edge, or retain the best talent.” This can be a challenging barrier to overcome. But by aligning the outcome of Workplace Culture to these specific pain points, we can shift the perspective. We will look at some data that builds that connection in just a minute. But it is vital that people understand that…(click) Read After Bullet 2: There can be real lack of sophisticated understanding when workplace culture is dismissed as “making employee’s feel good”. I like to compare the role that culture plays on the workplace as being as essential as electricity. Electricity is what powers our equipment, our buildings, our communications. Without it we are just sitting cold, in the dark. Workplace culture is what powers the people. The people are what make our products, provides our services, and people are what powers our business. Dismissing workplace culture as “just the warm and fuzzies” is like dismissing electricity as “just keeping our lunch cold in the fridge”.
- The truth is when leaders and managers dismiss the significance of workplace culture, they are dismissing the tangible and obtainable business best practice that can make them leaders in their field. (Read Slide) Growth is always a priority, but maybe that is a little to long term to for some people. What about things that will make a difference today?
- Well, pretty every business in the world right now is adapting to the still evolving business landscape and the ever-shifting norms. Dealing with effects of COVID is still something we all struggle with everyday. But…(Read Slide) Read after slide: That is something most of us could really use right now. This is what is so important for every business to understand. Small little changes and interventions that you could make today, can have a huge impact on your biggest pain points.
- For example, Workplace Culture was the biggest cause of The Great Resignation, and the most influential component to employee attraction and retention. (Read Slide) Think about that. We focus so often on compensation as our primary tool for lowering employee turnover rate, yet a workplace’s culture, the environment, is 10 times more powerful, than wages and benefits, in predicting how likely employees are to quit. Culture is not just about making an employee feel good. It is the single biggest factor in why employees quit. Your equipment needs reliable electricity to work, your employees need a respectful culture to work. It is just that simple.
- Because if you don’t give employees a culture that will let them give you their best work, they will find someone else who can. (Read Slide) Consider what that means. Changing jobs is a pretty stressful transition. A lot of times it is jumping into an unknown situation and hoping you don’t regret it. But if half of employees would leave you for a 10% raise because of the workplace culture. Poor culture leads to a revolving door of talent. Just think about that, if the mean average salary at your business is $50,000 a year, then that means people will walk out on you for $2.50 more an hour. $2.50! That is a lot of talent, corporate knowledge, training, relationships just walking out on you because of your lack of effort to create a successful and productive workplace culture. So, with this being so important, why do so many workplace stuggle with a maintaining a strong culture?
- Well, it is because this colossal and critical piece of our workplace is often completely misunderstood. (Read Slide) I think this is why we sometimes hear the dismissive statements from managers and leaders as culture is just the “coombia, everyone needs to feel special” and that it is an unnecessary addon to the workplace. They don’t really get it, or they know they don’t have the best work environment, but they're not sure how to fix it, so they dismiss it.
- And employees notice that lack of effort and understanding. (Read Slide) So, culture is a critical and vital thing that every workplace needs to place at the top of their priority list. Especially if you want to grow your business, adapt to the ever changing business environment, retain employees, and develop a sense of loyalty to the organization. But, it seem like the biggest reason it isn’t a bigger priority, or something we are addressing every day, is that we don’t really understand it. Well, the good news is, we have the answers for you. We can demystify workplace culture right now so you can start making changes today!
- After Bullet 1: This is because what we think a normal workplace culture looks like, is merely what we are use to, what we’ve experienced. Not unlike any relationships, our experienced shape what is normal or expected to us. If we had personal friendships where everyone is out for themselves, everyone barks orders at each other, those in charge feel it is ok to bully others, and no one feels safe to show any form of vulnerability to weakness. Then this is what you would expect in the new friendships you form. This would seem like the normal baseline. After Bullet 2: A very traditional way of thinking about the workplace is, “This isn’t a place to have fun, this is a place to work”, Or “I am not paying you to make friends, I am paying you to do your job”. These ways of looking at the workplace are pretty old school. Come in, do your job, and go home. The problem with this way of thinking is it totally ignores the realities of human psychology and displays a real lack of understanding in human interaction and how to successfully lead people. But, this type of thinking is how the workplace has been expected to run for decades, it is the status quo that HR professionals, and the next generation of leaders, need to acknowledge and work to dismantle in order to have success in 2022 and beyond.
- Read instead of slide: The best thing that you can do is to book a free follow up chat with us. (Click) If you’re in a supervisor or manager role, We can help you identify what changes you can make within your authority level to improve the workplace culture. If you’re an HR professional we can identify where you fall on the Hierarchy and assist with organizational assessments that will create a plan for the entire organization. If you’re an owner or executive we can provide coaching and training to your leadership and management teams so that your company will continue to Strive. Our chat with you is just a conversation to find out your specific needs so we can provide you the best advice to get started. (Click) We are so confident that our expertise and strategies can lead to the change you are looking for, that if you end up working with us, we offer a satisfaction guarantee. So, to make sure you don’t miss out, James will share the link to book your free follow up chat. Thank you and I hope you found something in this talk that can help you improve your workplace today. Possible Question: