Here at Axiom, we focus much of our attention with clients on company culture because it is the underlying foundation that all businesses stand on. Culture is to business as mycelia are to mushrooms (for all my biology buffs out there). For those of you who remember that “Mitochondria is the powerhouse of the cell” and not much else, mycelia are the expansive underground network of filaments that carries nutrients not only to the mushroom but also to the surrounding environment. Thus, without this unseen, but wildly important aspect, the entire ecosystem would suffer. The culture of a business functions in much of the same way; if culture is not the driving factor in your workforce, you are not soaking up all of the necessary nutrients for your business to thrive.
However, having a culture is not the same as having a good culture. While it may seem more intuitive that high stake, high-pressure situations yield higher results, the opposite could not be more true, your culture should always embody a positive work environment. Studies have shown that the quality and the strength of workplace culture has a direct effect on an employee’s interpretation, attachment, and experience within the organization. Meaning that positive cultures directly affect the sense of purpose employees derive from their work. A study conducted by LinkedIn and Imperative has found that employees who feel their work is purposeful, have improved performance scores and report increased commitment to the company. These employees are also more likely to stay with the company, pursue additional professional growth opportunities, and assume leadership roles more quickly than those who lack a sense of purpose in their work.
Companies that employ a high-pressure, cut-throat culture often see the negative effects and detrimental toll that stress takes on their employees. These companies generally expend nearly 50% more in health care than other organizations and it is estimated that 550 million workdays are lost annually due to overwhelming organizational demands. If that’s not enough, The American Psychological Association estimates that nearly 60-80% of all workplace accidents occur as a result of stress. Taking all of these factors into consideration, nearly $500 billion a year is liquidated from the U.S economy as a result of stress.
So how can you build a positive culture? We believe that culture is either created or enabled from the top down. Leadership needs to take ownership of the company culture.
One of the best ways to do this is by showing your care and concern for employees through consistent one-on-one’s. This is a strategy we employ with all of our clients (and employees), to set aside time for leaders and employees to talk. These meetings should be guided by employees, and we encourage leaders to begin with a simple, “how are you doing?” – but never let a simple “good” suffice as the answer. Sometimes it takes time for employees to open up, but these meetings are all about establishing trust so that your employees know you care for their well-being. A recent psychological study conducted by the Harvard Business School on cultural safety has found that leaders who prioritize an open line of communication see enhanced performance outcomes from their direct reports. Which strengthens our opinion that a great leader does not ask, “What can you do for me?” but instead asks “What can I do for you?”
We also encourage all of our clients to invest in their values. Sometimes it’s not always what you do but how you do it, letting your values guide how you go about your work is a meaningful way to foster a positive company culture. It also sends a message that the company cares more about its work than it does making a sale, an act that will not go unnoticed by customers. The words used for values are important, but even more important is how you define them. For example, at Axiom, we have the core value of truth. To you, truth might mean one thing, but to us, it means, “we speak the truth, even when it is hard to say and hard to hear.” We have carefully defined all four of our values: care, truth, diligence, and learning.
Values become the “ten commandments” the company should live by. Every employee needs to willingly buy into them, and they should be one of the “non-negotiables” for having a seat at the company table. If they aren’t willing, you can’t force it – chances are they aren’t a cultural fit for your company, and that’s okay, not everyone will be. Once they are adopted company-wide, their purpose really becomes two-fold. Firstly, they are used to celebrate and encourage employees. When someone on our team goes out of their way to speak truth, we make sure and give them recognition. Secondly, they are used for accountability. When someone demonstrates the lack of one of your values in a situation, you can point back to it and discuss why that value wasn’t lived out. When an employee repeatedly goes against the company’s values, the company’s culture suffers.
Remember employees respond to the overall wellbeing they feel at the company, an attribute that directly stems from a positive culture. Benefits like flextime, office gyms, and company parties are there to strengthen your culture, not replace it. A positive workplace is built over time and becomes successful because it improves the relationship between the company and its employees. It is also what attracts new talent, helps retain current talent, and brings out the best in the organization. Define your values, let them guide you, talk to your people, and remind them that you are always in their corner. Let your culture grow like a mushroom and let it spread throughout every aspect of your company. Your company “ecosystem” will be better because of it.