Gartner Says Only 31 Percent of HR Leaders Believe Their Organizations Have the Culture Necessary to Drive Performance
Culture Has Become a Key Differentiator in How Organizations Perform
There is no “right” culture — Gartner research shows no cultural type is a consistent predictor of organizational performance. Rather than focusing on what type of culture a company should have, business leaders should turn their attention to getting their culture to perform. To do this, employees must be aligned to the organization’s culture across three areas:
1. Knowledge: Know what the culture is
2. Mindset: Believe in the culture
3. Behavior: Behave in a way that supports the culture
Failure to achieve workforce-cultural alignment can cause employee performance to decline by as much as 12 percent.
To realize the business benefits of a culture that performs, leaders can’t just role model the culture — they must embed the culture and their company’s priorities into systems and processes, and provide business-unit leaders with support and resources to do the same. Efforts to operationalize the culture must be meaningful to the entire organization and permeate every facet of the business, from budgets to processes to workflows.
“Leaders should role model the behaviors and decisions they want from employees, but creating a culture that drives performance requires leaders to go beyond that,” said Mr. Kropp. “The best leaders help employees understand how the organization’s culture translates into their day-to-day work.”
Read our latest edition of Executive Guidance: Culture in Action: The Role of Leaders in Making Culture Perform to find out how to build a culture strategy that drives performance in your function and across your business.
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