Leadership
A Question of Culture By Erik Vermeulen
As a Behavioural Strategist , I often get asked about the mystical concept of company culture . What is it really , and why does it matter so much ?
Organisational culture goes far beyond the posters on the wall or having a ping pong table in the break room . It ’ s the collective energy that courses through your company ’ s veins . It ’ s shaped by the words and actions of leaders , the processes and systems in place , and the shared sense of purpose that rallies people together .
A strong culture becomes the invisible force guiding how employees think , behave and make decisions . It dictates the attitudes they bring , the initiatives they pursue , and how they resolve conflicts . An unhealthy culture breeds negativity , mistrust , and toxic workplace behaviours . A vibrant culture cultivates innovation , engagement , and a united front .
Experienced leaders know that intentionally shaping the culture is one of the highest leverage activities they can undertake . Why ? Because culture influences every aspect of execution and performance . It ’ s the fertile soil that allows your strategies to take root and your people to thrive . So ask yourself , is your culture actively strengthening your company ? Or is it slowly becoming a lead weight , keeping your organisation stuck and stagnant ? The culture you cultivate today flows into your tomorrow .
Healthy Culture , Healthy Team
A groundbreaking Harvard study , conducted by Professors John Kotter and James Heskett , revealed the profound impact of corporate culture on financial performance . They found that organisations with strong , adaptive cultures saw a staggering 765 % increase in net income over 10 years , compared to companies with weak or unadaptive cultures . This study , which examined over 200 companies across 22 industries , not only showcased the financial benefits but also highlighted improved employee engagement and customer satisfaction in strong-culture firms .
But what happens when cultures collide during mergers or rebrands ? This is where the real challenge , and opportunity lies . I often speak about the concept of “ Cordialism ” in organisational culture . Like a drink losing its flavour as it ’ s diluted , a company ’ s culture can become bland and ineffective as it grows or merges with others . The key is to maintain the essence of what makes your culture unique and powerful , even as you scale or integrate new elements .
In today ’ s rapidly evolving business landscape , we ’ re seeing a rising trend of “ culture-first ” companies . These organisations prioritise cultural alignment in hiring , decision-making and strategy – and they ’ re reaping the benefits . Another emerging trend is the focus on “ cultural agility ” – the ability to maintain core values while adapting to new challenges and diverse environments . This is crucial in our increasingly global and remote work world .
Building and maintaining a strong culture isn ’ t just about having ping-pong tables or casual Fridays . It ’ s about creating an environment where people feel valued , aligned and motivated to contribute their best .
Avoid Culture Killers
As a leadership consultant , I ’ ve seen firsthand how toxic behaviour can destroy even the most promising organisational cultures . Here are six surefire ways to sabotage your company ’ s success , and avoiding these pitfalls is crucial for building a thriving , high-performance company culture .
1 Disrespect people : Research shows that disrespectful behaviour reduces cognitive performance and creativity .
2 Micro-manage : A study by the University of Pennsylvania found that perceived autonomy increases job satisfaction by 33 %.
3 Fail to recognise good work : According to Gallup , employees who don ’ t feel adequately recognised are two times more likely to quit within a year .
4 Promote the wrong people : Poor promotion decisions can cost up to 24 times an employee ’ s annual salary .
5 Don ’ t develop people : Companies that invest in employee development see 24 % higher profit margins .
6 Pay lip service to values : Inconsistency between stated values and actions erodes trust , with 58 % of employees citing this as a reason for leaving .
Erik Vermeulen is a behavioural strategist focusing on employee engagement strategies , combining employee and customer engagement with his endurance endeavours in running , cycling , adventure sports , expedition races and mountaineering . This unique blend of knowledge and experience makes him a sought after coach and motivational speaker . More at https :// ridgelineza . com .
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