Organisational culture plays a pivotal role in shaping a company’s identity and success. Culture is often considered to be that mysterious ‘invisible force’ that influences how people think, act, and interact with each other and their environment in an organisation. Understanding and measuring that ‘invisible force’ is critical to unleash the collective behaviour that drives organisational success and sustainability. Given that culture taps into the motivators, assumptions, and beliefs that drive behaviour, it is generally considered difficult to define and measure. But culture is not an ‘invisible force’ because it manifests as very distinct and observable collective behaviour, and behaviour can be measured. Just as organisations rely on metrics to track their progress and decision-making in relation to strategic objectives, so they should objectively measure and track culture.
The use of clear culture metrics to evaluate, monitor, and shape culture provides an organisation with a competitive advantage by impacting the following:
- Employee Engagement and Productivity
Measuring and managing culture provides the basis for ongoing culture conversations. This enables development of a shared language, understanding of ‘how we do things around here’, and a strong connection to the values held in common by employees. A positive and well-aligned culture fosters a sense of belonging and purpose and can be a powerful source of inspiration for a workforce. When employees feel connected to the organisation’s values and mission, they are more likely to be engaged and motivated to perform at their best.
- Alignment with Strategy
Successful organisations have a clear strategic vision that guides their actions. However, a misalignment between culture and strategy can hinder progress. Measuring culture allows leaders to assess whether the collective behavioural norms of their workforce support or hinder the execution of strategic objectives. When culture and strategy are in harmony, organisations are better equipped to achieve their goals effectively.
- Enhancing Decision-Making
Organisational culture influences decision-making at all levels. By measuring and managing culture, leaders can ensure that decisions align with the organisation’s core values and long-term goals. This reduces the risk of actions that may compromise the integrity of the organisation.
- Fostering Innovation
When leaders measure and manage culture, they can identify and nurture the cultural elements that promote innovation. Employees in innovative cultures are more likely to contribute fresh ideas and drive positive change through creativity and adaptability in their behaviour.
- Attracting and Retaining Talent
Talented individuals seek organisations with cultures that resonate with their values and aspirations. A positive and well-managed culture can be a powerful tool for attracting top talent and retaining the best employees. Measuring culture enables a deliberate approach to fostering an environment in which people feel they belong and can grow.
- Legal Compliance
Measuring organisational culture serves as a pivotal tool in ensuring compliance with the Respect@Work framework and the Psychosocial Code of Conduct. By assessing the prevailing culture within an organisation, it becomes possible to proactively identify any aspects that might be incongruent with the positive duty required of leaders to meet the standards outlined in these mandates and implement targeted interventions to address shortcomings.
Measuring, tracking, and managing culture is no longer an optional exercise—it has become a necessity for organisations to thrive in a competitive world. A strong and well-aligned culture drives employee engagement supports strategic objectives, and fosters innovation. It ensures that decisions are aligned with an organisation’s values, and that top talent is attracted and retained. Investing in the measurement and management of organisational culture will drive your organisation towards a brighter and more successful future.
TMS Consulting can assist your organisation to measure and shape a strong, well-aligned culture.