A company is a social system. It is what it is because of the people in it. The organisation and its results faithfully reflect what its members want them to be, or are willing to accept.
The link between an organisation’s culture and performance is well established by research. Typically, at least half of the performance of an organisation depends directly on its people. In businesses where knowledge workers are prevalent, the effect is typically more than half. To change the results, you must change the culture.
Without the right level of cultural support, you can’t get the results you want. You can’t design an appropriate vision or a flexible strategy because you don’t know what is really going on in the field. Maybe the market is reacting in an unexpected way, or a crisis is looming, or ambiguity obscures a projected outcome, or your communication in a particular area is not working. In these and other challenging situations, you need people to support you with accurate information and honest insights into the options and choices that might be needed.
Every successful leader in 2015 will be a key enabler of the organisation’s people and culture. Instead of 100% focus on the financials, they acknowledge that results come from people and demonstrate authentic commitment to their people’s success by developing good structures, good systems, and good teams with the qualities and skills to do the job.
As a result, these leaders get the support they need to manage ambiguity and lead when uncertainty abounds; to prosper and be successful. Because employees are truly engaged, the organisation becomes more effective at every level.
Intentional or Accidental
As you look toward 2015, are you prepared to proactively create the culture that will support your leadership and deliver the results you need?
You may or may not be aware of your organisation’s culture, but it is unarguably in place, exerting its power over your results. You may choose to continue to focus only on economic performance and results—revenue, sales, margin, balance sheets, profit and loss—and let culture develop on its own. But without that invisible advantage supporting you, at best you will get about the same performance you’ve been getting. It is more likely that the culture will take a direction you do not want, and fixing it later might be more painful or take more resources than you’d like.
The smart choice is to develop clearly and in a meaningful way, the one element that drives performance: the people. If you want to lead the pack in 2015, take control of your organisation’s culture and its evolution today and start directing it proactively to create a competitive advantage.
Are you content with accidental culture or are you ready to create your organisation’s culture? If so, we know you will reap benefits!
Contact Us For Organisational Culture and Performance Development
Visit Vivente’s corporate headquarters at Level 33, Australia Square – 264 George Street; Sydney, NSW 2000 AUSTRALIA or Telephone us at +61-2-8211 2771.