Post 3 out of 5: The Impact of Organizational Culture on Performance – Strong Culture = High Performance? How Does It Really Work?

In previous posts, we discussed what organizational culture is and the hidden factors that shape it. Now, let’s dive a bit deeper – how can a strong and healthy organizational culture improve your organization’s actual performance?

1. Employee Motivation and Engagement

A positive organizational culture not only makes employees feel good at work, but it also increases their motivation. Why? When employees feel part of something bigger, when their work has real meaning – they give their maximum. A Gallup study shows that highly engaged employees tend to be more productive, and their engagement improves their sense of belonging and commitment to the organization. This means they’re also less likely to look for another job.

2. Collaboration and Strengthening Community Feeling

When there’s a culture that promotes collaboration, employees feel there’s room for real dialogue. In such organizations, there’s more openness to ask questions, share ideas, and receive feedback – leading to better performance. A good example is Spotify – one of the most successful companies in the digital music world. Their culture is based on “squads” – small teams composed of diverse individuals who support each other to achieve quick successes.

3. Creativity and Innovation

In an organization with a culture that values creativity and openness, employees feel comfortable raising innovative and unconventional ideas. This culture creates a space where new things can be tried, even if they don’t always succeed. Steve Jobs often said that Apple’s success stems from employees’ ability to feel free to initiate, think outside the box, and be creative.

4. Ability to Cope with Changes and Challenges

A strong organizational culture contributes to the organization’s ability to deal with challenges and changes. When there are clear values and good communication, it’s easier to mobilize teams to work together to handle unexpected situations. Especially in an era like ours, where changes happen faster than ever, such a culture can be the organization’s competitive advantage.

5. Increasing Employee Loyalty

A healthy organizational culture encourages loyalty and satisfaction. The more employees feel valued, understand the organization’s goals, and belong to a strong community – the more likely they are to stay with the company long-term. And it pays off: according to a LinkedIn study, companies with a strong organizational culture experience lower employee turnover, leading to significant savings in recruitment and training costs for new employees.

Examples from the World

An excellent example is HubSpot. This company emphasizes values like “being change makers” and “collaboration”. The result? Employees are more engaged, satisfied, and loyal, and the company enjoys excellent performance and amazing business results.

In the next post, we’ll talk about the less positive side of organizational culture – when organizational culture can actually be harmful, and how to identify the early signs of this.

Sources:

1. Gallup’s State of the Global Workplace report – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2021-report.aspx

2. HubSpot Culture Code – https://www.hubspot.com/culture