Every organization has a culture, and it has a dramatic impact on the bottom line. If you can’t put into words what your company’s culture is, then you are in the precarious position of having a culture by default. After decades working with mid-size businesses, OPOC.us, a Strategic Planning Firm, has discovered that many employers fall into this category, and it’s having a significant impact on the bottom line.
Developing a company culture isn’t simply a one-time process. It’s a lot more complicated than developing a mission statement or a company vision. It must encompass the entire philosophy of the organization about forward vision, customers, employees and the public. It needs to be communicated and reinforced regularly through words and actions. Failure on either of these fronts will result in a culture by default. It takes a lot of time and effort to establish a company culture – resources that a business owner might not feel are available. But the consequences of not establishing a culture by design are dire.
What are the costs of a culture by default? Less Creativity. Lower Productivity. Disengagement. Poorer Outcomes. Negative Turnover. Recruiting Challenges. We all know that it’s easier to go downhill than uphill. The same is true for your company culture. Without a consistent culture, an employee that starts out positive and engaged can quickly spiral down to being disinterested and unproductive. A Columbia University study found that the likelihood of job turnover is 13.9% at organizations with a positive, well-established company culture. At companies with a negative or undefined company culture, that rate is 48.4%! High turnover is expensive, and it’s indicative of an even larger issue – not all disengaged employees will leave. For every employee that leaves, there’s another employee still coming in each day (or most days), putting in the time but not the energy, effort or enthusiasm needed to have the greatest impact. The costs of a culture by default ripple through the entire organization and result in lost revenue and reduced productivity every single year.
Intentionally building the organization’s Internal Brand by fostering and developing a positive, supportive culture can reverse the trends and improve every aspect of the business. A culture by design improves interpersonal relationships and builds protection from negative emotions during times of stress. Your employees are engaged and work well together as a team, which results in better results for your customers. When done with focus and determination, a culture by design can also resolve recruiting challenges, as highly-qualified candidates seek out organizations with an excellent reputation for their workplace culture.
With the costs so high and the advantages so clear, failure to develop a culture by design is an organizational decision to accept higher turnover, lower customer satisfaction and poorer outcomes. It’s a decision to be inactive instead of proactive about the development, growth and potential of the organization – a decision that no forward-thinking leader should make.
OPOC.us is a collaboration of top industry Strategic Planners in the areas of Culture Success, Healthcare and Employee Benefits, Retirement Plan Administration, Risk Management, Business Process Improvement, HRIS Technology, Recruiting, and Branding specializing in the delivery of Fortune 500 “One-Point-of-CARE” solutions for mid-sized organizations.
Adam Sommer, Development Analyst
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Original Source: OPOC.us Calculates the Hidden Costs of a Culture by Default vs. Advantages of a Culture by Design