how to improve organizational culture essay

6 Tips for Building a Better Workplace Culture

Sparking cultural change is never easy, but these six powerful tips can help you make your organization a better place to work.

Mary Sharp Emerson

People are the heart of an organization’s success — or failure.

Companies that find themselves at the top of Glassdoor’s Best Places to Work not only provide an in-demand product or service. They also foster a culture that inspires innovation, dedication, and enthusiasm among employees.

Conversely, companies that experience a major downturn or fail to adapt to a changing market, can often tie that decline back to a toxic culture that was anything but motivating.

So how do you create a corporate culture that has talent lining up at HR and customers lining up in the stores?

The answer doesn’t lie in sky-high salaries, fancy physical spaces, and flashy perks like catered lunches and game rooms, says Lorne Rubis , chief culture and transformation officer at NorQuest College and instructor at Harvard DCE Professional & Executive Development.

The answer lies with successful leaders who focus on creating a culture that encourages those within the organization to believe in the mission of the organization.

Following are six powerful tips that will help you build the foundations of a corporate culture that will help your organization, and employees, thrive.

1. Define your values

In general, people want to believe that they are part of something meaningful, that they are contributing to a common purpose.

Corporate culture, therefore, must be deeply rooted in your company’s core purpose and values.

“People — customers and employees — are not going to line up [to become part of your company] only because of the product and the services. Your culture should offer an experience that they want to be part of. You know you have created a positive corporate culture when people say, I really want to be part of this institution.

In other words, Rubis says, “Your employees have to feel good about what they do.”

Articulate your values explicitly and intentionally.

As a chief culture officer, Rubis says he will often gather top executives together for several days to create a single value statement. To be effective, that level of dedication is required if you truly want to change your culture for the better.

If you are starting the process of changing your culture, your value statement should represent your vision for what you believe your company should represent.

“You can create an aspirational story of what the desired journey of a team member should look like, looking out X number of years into the future. That aspirational story should imply all kinds of things for that journey, such as a sense of contribution, a sense of belonging, great productivity, flexibility, all the things you can think about what it would be like for you, as a human being, to work in that organization,” says Rubis.

Building Organizational Cultures: A Framework for Leaders

2. Be authentic

Rubis also notes that “buy in comes from authenticity.”

Your purpose and values will only create a solid foundation for culture change if you truly believe them. The process must be genuine.

Corporate leadership — at every level of the organization — must be, as Rubis states, “fiercely and personally accountable.”

Only by committing yourself to act within the values you define will you earn the trust of your employees and help people buy into the process.

“If, as an employee, you genuinely feel that there’s integrity in what’s declared from the top of the organization, if you believe that the top of the organization deeply, deeply believes in and reinforces those values, then you will feel that you’re genuinely advancing a purpose for a good reason.”

To create real cultural change, your leadership team must be prepared to communicate those values across the organization, and to act on those values themselves. 

3. Create listening posts

According to Rubis, listening to your organization is absolutely critical.

By creating listening posts throughout your organization, you can gather anecdotal and quantitative data about your culture. If you are listening carefully, this data should confirm that your culture is motivating your employees, or alert you to signs that you may need to make a change.

Surveys measuring engagement, trust, and culture, for example, can be powerful tools for collecting honest feedback from your teams.

Quantitative data such as low employee turnover, high retention, ease of hiring quality talent, high productivity, and high customer engagement can also be leading indicators that your culture is working in your favor.

It’s important that you don’t rely solely on indirect listening posts, however. Effective and meaningful direct communication must be an ongoing part of the process as well.

One-on-one meetings, working groups, workshops, and conferences enable you to communicate values from the top down while simultaneously taking the pulse of teams across the organization.

4. Build psychological safety

Listening posts are especially critical for alerting you to a culture that is trending in a negative direction. As Rubis notes, “If you’re a listening organization, there are always canaries in the proverbial coal mines.”

High employee turnover, for instance, is an obvious sign that your corporate culture isn’t working.

Yet whatever the outward signs, the root problem is the lack of psychological safety. Your employees do not feel safe to express concerns, report problems, be proactive or creative, promote innovation, or take risks.

And one of the most powerful indicators that people in your organization do not feel safe is silence. According to Rubis, “The most dangerous organization is a silent one.”

“You have to listen to the criticism. You have to be open to not being defensive about it. And you have to stand back and have the courage and the honesty to say ‘something is wrong here.’”

It’s easy to write off the criticism you hear as nothing more than opposition to change or the bad attitude of a disaffected employee. Successful leaders must rise above that gut reaction.

Building psychological safety requires rebuilding trust and ensuring that your actions are in line with your corporate values, Most importantly, you may need to acknowledge that your words and actions may be part of the problem.

5. Accept and learn from mistakes

“Mistakes are true vehicles for learning and enable your teams to want to experiment and innovate,” Rubis says.

How your leadership team handles mistakes will reinforce or undermine your culture.

A great place to start is openly acknowledging that mistakes will happen. Executives should be able to admit that even they will make mistakes. As Rubis notes, employees have a right to expect great leadership, but not perfect leadership.

When a mistake is made, examine that mistake in the context of your core purpose and values. Reviewing how a particular error occurred within that context will enable you to learn the right lessons.

Only then can you truly promote a culture of acceptable risk-taking, creativity, and innovation.

6. Watch trends

Corporations are never static, and neither is the process of creating a culture change.

“It’s iterative and it’s messy,” says Rubis.

The goal is to create momentum in a positive direction.

“Because what happens is that each small action you take becomes systemic, and you start to create a movement. And every small step starts to reinforce all the other steps, moving you forward. And the reverse is true as well, that if you aren’t careful, movement can trend toward toxicity.”

Once you create your listening posts, never stop paying attention to what they’re telling you.

If you are creating momentum in a positive direction, your engagement surveys, trust indicators, retention and hiring numbers, for instance, should confirm that. While there will likely be false starts and missteps, the key is to look for trends that you are moving forward.

Always be on the lookout for the “canaries in the proverbial coal mine” as well, because momentum can snowball in the wrong direction just as easily.

Part of the iterative process must include frequently revisiting and revising your value system.

“And just be relentless, like a dog on a bone, about storytelling. Be relentless about your communication system. Never stop talking about everything you do.”

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About the Author

Digital Content Producer

Emerson is a Digital Content Producer at Harvard DCE. She is a graduate of Brandeis University and Yale University and started her career as an international affairs analyst. She is an avid triathlete and has completed three Ironman triathlons, as well as the Boston Marathon.

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10 Principles of Effective Organizations

• Michael O'Malley

Lessons from the field of organization development.

Organizations are pretty good at solving specific problems as they arise, but many lack a set of criteria and goals to meet in order to maintain their ability to compete and grow. The author identifies 10 research-backed principles from the field of organization development to guide companies: 1) Encourage cooperation, 2) organize for change, 3) anticipate the future, 4) remain flexible, 5) create distinctive spaces, 6) diversify your workforce — and create an inclusive environment, 7) promote personal growth, 8) empower people, 9) reward high performers, and 10) foster a leadership culture.

As organization development evolves alongside institutional practices and insights into human behavior, a big piece of the field is still missing: a set of principles that convey what organizations must do well to thrive. Organizations are adept at identifying specific problems and have at their disposal a host of interventions designed to resolve them, but they operate without broader developmental criteria, or goals, that must be satisfied to preserve companies’ ability to compete and grow. Accordingly, below are 10 principles to guide developmental initiatives within your organization.

• MO Michael O’Malley, PhD is a principal at SullivanCotter, Lecturer in the Yale School of Medicine, and the author (with Warner Burke) of the recently published Profitably Healthy Companies .

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Organizational Culture: Definition, Examples, & Best Practices

By: Grace He | Updated: December 10, 2023

You found our article on organizational culture: definition, examples, & best practices .

Organizational culture is the rules, values, beliefs, and philosophy that dictate team members’ behavior in a company. The culture consists of an established framework that guides workplace behavior. Examples include integrity, teamwork, transparency, and accountability. The purpose of organizational value is to differentiate your organization from others and act as a model for decision-making processes.

The ideas in this article are similar to improving company culture , employee engagement activities , having fun with employees , and creating a positive work environment .

This article includes:

• definition of organizational culture
• types of organizational culture
• organizational culture examples
• organizational culture best practices
• importance of organizational culture
• workplace culture examples

Let’s get started.

Definition of organizational culture

Organizational culture refers to the shared values, beliefs, norms, behaviors, and practices that characterize a particular workplace or company. This culture is the collective personality of an organization that shapes the way employees interact, make decisions, and approach their work. Essentially, corporate culture serves as a blueprint for how business is done within the organization and influences the overall work environment and employee experiences.

At its core, company culture reflects the company’s history, leadership style, and values. These cultural elements create a sense of identity and belonging among employees, as they collectively align their actions with the established norms and expectations. Office culture can be explicit, with clearly defined and communicated values. Alternatively, this culture can be implicit, existing in the unspoken behaviors and attitudes of employees. Either way, this system greatly influences employee perceptions of roles, camaraderie, collaboration, problem-solving approaches, and the organization’s external reputation.

Understanding and managing this culture is crucial because it directly affects employee engagement, performance, and overall organizational success. A positive and healthy culture can foster employee satisfaction, motivation, and loyalty, increasing productivity and innovation. On the other hand, a toxic or misaligned culture can result in high turnover, internal conflicts, and hindered performance. Organizations that actively shape their culture tend to have a more engaged and cohesive workforce. In turn, this system helps firms navigate challenges and adapt to changes more effectively.

Several factors can determine your company’s culture, including the following.

1. Leadership Principles

Leadership principles are like the guiding rules that leaders follow to shape an organization’s culture. Good leaders are honest, open, and accountable. These supervisors encourage open communication and value different ideas. Additionally, good leaders believe in the strength of a diverse team. Strong leaders inspire and empower their teams, setting an example of continuous learning and adaptability, which promotes a culture of growth and resilience. In essence, leadership principles are the foundation of an organization’s culture.

2. Type of Business

The type of business greatly influences its organizational culture. For example, a tech startup often fosters an innovative and agile culture that encourages experimentation and risk-taking. In contrast, a more traditional, established company may prioritize stability and hierarchy. Similarly, service-oriented businesses often focus on customer-centric cultures, while creative industries emphasize individuality and creative expression. Regardless of the business type, the firm’s values and practices shape the culture, influencing how employees interact, collaborate, and innovate within the organization.

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3. Clients and Staff

Clients and staff significantly impact work values. Clients influence culture by shaping products, services, and communication based on their preferences. Positive client experiences foster excellence and innovation, while challenges can prompt cultural shifts. Staff contribute to culture through values, behaviors, and collaboration. Engaged employees create a culture of teamwork and dedication, with leadership playing a key role. Prioritizing employee well-being cultivates a culture of empowerment and growth.

Types of organizational culture

According to professors Robert Quinn and Kim Cameron at the University of Michigan, there are four main workplace culture types. These types are the Adhocracy Culture, Clan Culture, Hierarchy Culture, and Market Culture.

1. Adhocracy Culture

This culture type is characterized by innovation, risk-taking, and adaptability. Organizations with an adhocracy culture value creativity, experimentation, and a dynamic approach to problem-solving. These firms thrive in fast-changing environments and encourage employees to explore new ideas and initiatives. Flexibility and a willingness to take calculated risks are key features of this culture.

For instance, Google is known for its adhocracy culture. The company encourages employees to pursue innovative ideas and projects, even allowing them to dedicate some of their work time to personal initiatives. This culture of experimentation and risk-taking has led to the development of products and services beyond its core search engine, such as Google Maps and Google Glass.

2. Clan Culture

Clan culture centers around collaboration, teamwork, and a sense of community. Organizations with a clan culture prioritize employee engagement, open communication, and mutual support. There is a familiar atmosphere where employees often refer to each other as a “family.” This culture values employee well-being, personal growth, and long-term relationships.

Zappos, an online shoe and clothing retailer, is often cited as an example of clan culture. The company places a strong emphasis on employee happiness and engagement. The firm’s core values include “Deliver WOW Through Service” and “Build a Positive Team and Family Spirit.” Zappos’ commitment to creating a positive and collaborative work environment is a hallmark of clan culture.

3. Hierarchy Culture

Hierarchy culture is characterized by structure, stability, and a strong focus on processes. Organizations with this culture type have clear lines of authority, well-defined roles, and standardized procedures. These firms often value efficiency, predictability, and maintaining stability through established protocols.

IBM is an example of a company with a hierarchy culture. With a history of engineering and technology, IBM emphasizes structured processes and a clear chain of command. The company’s approach to innovation is often more planned and methodical, focusing on research and development driven by a defined hierarchy of expertise.

4. Market Culture

The market culture emphasizes competition, results, and achievement. Organizations with a market culture prioritize goals, performance metrics, and the bottom line. These firms encourage individual initiative, assertiveness, and a strong focus on delivering customer value. This culture type is often associated with a results-driven and competitive environment.

Amazon is a prime example of a market culture. The company is highly results-oriented and customer-focused, prioritizing efficiency, productivity, and competitive success. Amazon’s leadership principles, such as “Customer Obsession” and “Bias for Action,” underscore its market-driven approach to decision-making and achieving results.

Organizational culture examples

Adopting a positive team spirit affects a company’s success. It is little wonder why several companies develop cultures that align with their goals. Here are five examples of companies with great work cultures.

Netflix has an admirable work culture. The entertainment company is popular for its culture that emphasizes people over process. At Netflix, all employees can participate actively in important decision-making processes. There are no inhibiting rules, and staff members can communicate freely and directly. Netflix chooses employees based on integrity, teamwork, passion, humility, innovation, and selflessness.

2. Microsoft

Microsoft has a commendable work culture mainly focused on a growth mindset. The company is popular for employees dedicating their skills, time, and money to help make a difference in the world. This difference contributes to employee diversity and inclusion, considering Microsoft has employees from all backgrounds and walks of life working to ensure customer satisfaction.

3. Patagonia

Patagonia, an outdoor apparel and gear company, is renowned for its commitment to environmental sustainability and social responsibility. The company’s work culture deeply aligns with its core values, which include advocating for environmental causes and encouraging employees to live purposeful lives. A sense of purpose and a mission-driven approach to business categorize Patagonia’s culture. The firm encourages employees to participate in environmental activism, and the company supports their involvement through initiatives such as paid environmental internships.

4. Salesforce

Salesforce, a leading customer relationship management software company, is known for its Ohana culture. This system emphasizes inclusivity, philanthropy, and community engagement. The company’s strong commitment to social impact is reflected in its 1-1-1 model, where it donates 1% of its equity, time, and products to charitable causes. Salesforce fosters a culture of innovation and creativity by encouraging employees to think outside the box and take risks. The company’s work culture promotes continuous learning through its Trailhead platform, which offers various courses and resources for skill development.

Adobe is a multinational software company and has cultivated a culture of creativity, innovation, and employee development. The company’s culture encourages employees to explore their passions and experiment with new ideas. Adobe’s “Kickbox” initiative provides employees with resources to pursue innovative projects, fostering a culture of experimentation and risk-taking. The company promotes diversity and inclusion and provides platforms for employees to share their unique perspectives. Adobe also values work-life balance, offering various programs to support employees’ well-being. This culture of creativity and employee support has contributed to Adobe’s reputation as a leader in creative software and a desirable workplace for creative professionals.

6. Nordstrom

Nordstrom, a high-end fashion retailer, has a strong customer service culture and commitment to employee empowerment. The company values a customer-centric approach and empowers employees to make decisions that prioritize customer satisfaction. Nordstrom’s culture is built on trust and autonomy, allowing employees to take ownership of their roles and contribute to the company’s success. The company also focuses on employee development, offering opportunities for advancement and growth within the organization.

7. Wegmans Food Markets

Wegmans is a regional supermarket chain known for its culture of employee development, community engagement, and work-life balance. The company places a strong emphasis on treating employees like family and providing growth opportunities. Wegmans offers extensive training programs, mentorship opportunities, and pathways for advancement within the organization. The company’s culture features a supportive and collaborative environment. Leaders encourage employees to excel and contribute to the community. Wegmans also prioritizes employee well-being through initiatives such as flexible work schedules and wellness programs.

Organizational culture best practices

Many companies seek best practices to help adopt a healthy culture. However, this process involves more than printing your new values on the office handbook, distributing it to employees, and expecting an instant change. Adopting a thriving work culture does not work like magic. Rather, culture building requires consistency and a roadmap that helps build these best practices. Here are useful organizational cultural best practices to help you rebrand your company culture.

1. Communicate with your Employees

Communicating with your employees is the first step in adopting a healthy work culture. You should discover what employees like or dislike about the work process, leadership, and environment. You should also find out what motivates team members and redesign the existing work culture that is not serving these needs. Similarly, it would help if you encouraged employees to engage more in decision-making. If you can get employees to feel great working with you, then there is a high chance you will notice an increase in productivity.

2. Encourage Creativity and Innovation

A company that encourages employees to be risk-takers, creative, or innovative will likely experience more growth. A single idea may be all you need to launch your company to the next level, and it could be sitting in an employee’s head. You can make a difference in your corporate culture by encouraging employees to undertake personal tasks that align with the company’s goals.

3. Create a Diverse Workspace

Companies like Microsoft did not just become influential overnight. Diversity is a major part of workplace culture. You can incorporate diversity by creating a fun and inclusive workspace where workers from different walks of life can collaborate on impactful projects. By encouraging an equitable onboarding process, you can create a diverse company culture that encompasses all employees and gives them a sense of belonging. You can also conduct confidential surveys or meetings where employees candidly communicate their feelings.

4. Hire Employees With Similar Values

To promote a long-lasting and successful business culture, hiring workers with similar values is one practice you should take seriously. You cannot sustain a positive work culture if new hires think and act differently from existing employees. Hiring based on qualifications or talent is not enough. You should also pay attention to your worker’s personal beliefs and principles, like honesty, innovation, passion, and creativity. You should ensure employees have what it takes to treat clients in a way that mirrors the company’s culture. Before hiring new staff, these questions should always be on your mind.

5. Recognize and Reward Culture-Aligned Behavior

Recognizing and rewarding culture-aligned behavior is like a boost for the right workplace atmosphere. When leaders praise employees for showing the values that the company believes in, it makes a big impact. Sometimes, this praise can be public, like in team meetings, or it can be in private one-on-one talks. Sometimes, managers can offer actual rewards like bonuses, making the connection between good behavior and appreciation even stronger. Doing this process consistently creates a cycle where leaders encourage good behavior, and workers begin to act accordingly.

6. Let Leadership Reflect the Company’s Culture

If you want a healthy company culture, then you must model it yourself. It is advisable to access your personal values and work behavior to ensure they align with the new work culture you want. Your HR team and other high-ranking executives should also mirror these new values. For instance, you cannot encourage punctuality in employees when you are always the last to arrive at work. Healthy culture practices work when team members obey the rules and regulations. Your employees tend to follow suit if the leadership structure embraces this healthy work culture.

7. Invest in Employee Development

Investing in employee development is like putting effort into helping employees grow. For instance, offer training and chances to learn new skills. Also, show employees how they can move up in the company to give them a reason to work hard. Implementing mentoring programs where experienced employees guide newer ones and discuss performance can also help. When companies take care of work skills and overall well-being and balance, it shows they really care about employees. These steps build a culture where employees want to stay, work hard, and succeed together.

Importance of organizational culture

Aside from increasing a company’s success rate, corporate culture produces a well-structured and highly functional workspace. Here are some reasons why culture is important for every company.

1. Improves Your Brand Identity

A company’s culture influences its inner workings and how others see it, affecting its reputation. A positive corporate culture should focus on more than just satisfying your employees. Your culture can also be a great marketing strategy because customers who share similar values will want to do business with you. A workplace culture speaks volumes and helps you stand out from your competitors.

2. Boosts Customer Satisfaction

Customer satisfaction is a vital pillar of a successful business climate. When employees care about customer needs and the company prioritizes quality, it leads to loyal customers who spread the word. A culture that focuses on customer satisfaction encourages employees to go beyond meeting expectations, striving to exceed them. This belief leads to repeat business and bolsters the organization’s reputation and market presence.

3. Encourages Ethical Behavior

Ethical behavior forms the moral compass of a robust office culture. When a company values honesty, openness, and integrity, it creates a workplace where employees consistently choose what is right. An ethical culture emphasizes that the means are just as important as the ends, guiding employees to act ethically even when faced with challenges. Such a culture builds trust with customers, partners, and stakeholders while also ensuring compliance with laws and regulations. Ethical behavior is the backbone of an organization’s credibility and long-term success.

4. Retains Employees

It is rare for employees to quit a company that caters to their emotional and physical well-being. A strong culture builds an employee experience that eliminates the need to quit. Some of the most influential companies have the best performers in their industries as employees. These companies have created a workspace that values every skill and helps employees reach their full potential. Besides, a good environment reduces the turnover rate and human and financial resources depletion.

5. Fosters a Healthy Workspace

A great team atmosphere eliminates disputes, chaos, or animosity between team members. A healthy culture encourages a collaborative atmosphere where employees work to achieve the company’s goals. A workspace that caters to workers’ needs and sees others as more than just colleagues is important for a company to stand out from others. A healthy workspace accelerates the decision-making process, fuels purpose, and outlines clear expectations. Therefore, you can expect top-notch results that will benefit both the company and its customers.

Organizational culture is one of many factors that determine a company’s success. A company’s culture greatly influences the perception of others about you and your team. Thankfully, this article provides a concise overview of corporate culture and its importance. Learning about the different types and best practices can shape your current work culture for the best.

Next, check out our guide to creating a strong remote work culture .

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FAQ: Organizational culture

Here are some commonly asked questions about organizational culture.

What is organizational culture?

Organizational culture refers to the values guiding the behavior of team members in a workspace. Corporate culture is a collection of practices that reflects the company’s philosophy and expectations.

What are the best examples of organizational culture?

The best examples of workplace culture include Netflix, Microsoft, and Wegmans.

How do you improve organizational culture?

You can improve your own culture by encouraging open communication with your employees. Creating a diverse and inclusive workspace as well as encouraging innovation and creativity also helps.

Author: Grace He

People & Culture Director at teambuilding.com. Grace is the Director of People & Culture at teambuilding.com. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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People & Culture Director at teambuilding.com.

Grace is the Director of People & Culture at teambuilding.com. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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Workplace Dynamics

What is organizational culture and why is it important, here's how to transform your workplace culture to skyrocket performance..

Posted December 9, 2023 | Reviewed by Ray Parker

• Organizational culture is the collective mindsets and behaviors of a company.
• A positive workplace culture increases employee engagement, motivation, and retention.
• The seven strategies for creating a positive culture include celebrating achievements to boost morale.

Organizational culture is like the personality of an organization. It's about how everyone, from leaders to the newest hires, thinks and acts. It shapes how work gets done and how people treat each other.

Organizational culture includes the unwritten rules and shared beliefs that guide people's behavior. For instance, a company that values open communication might have meetings where everyone is encouraged to speak their mind, leading to better ideas and stronger performance.

Alternatively, if an organization has a culture where only the most senior employees' ideas are welcomed in meetings, it might lead to frustration and apathy for everyone else because others may feel their voice doesn't matter.

Culture: The Unique DNA of Every Organization

Culture is the underlying DNA of every organization—it's what makes employees feel connected and invested in their jobs. When a company has a strong, positive culture, it can foster greater engagement, which means people care more about their work and go the extra mile. Positive cultures boost motivation , leading people to do their best and be happier in their jobs. Such feelings of connection and satisfaction can lead them to stay longer with the company, reducing turnover and building a strong, experienced team.

When a culture encourages new ideas and open-mindedness, employees are more likely to come up with the kind of breakthroughs that can change the game for a business. In such an environment, teams work better together, share more ideas, and push each other to be the best they can be, which often leads to greater success for the whole organization.

Seven Strategies for Creating Positive Organizational Cultures

There are many ways to foster a positive business culture. Managers and leaders can focus on the following:

Vision and Mission Clarity : A compelling vision and mission statement act as the psychological contract with employees, offering a clear narrative about what the company stands for and its aspirations. When a company like Google pledges to "organize the world's information," it sends a powerful message about its purpose, aligning the workforce towards a common goal. Leaders can facilitate workshops and discussions to ensure these statements resonate deeply with every team member, thereby internalizing these guiding principles.

Values in Action: Core values are the psychological pillars of an organization's culture. When the online retailer Zappos emphasizes "delivering WOW through service," it's not just a statement but a call to action that employees live by so they deliver exceptional service. Leaders can make these values tangible by embedding them into performance reviews, hiring criteria, and daily operations, ensuring they're not just words on a wall but principles that drive decision-making and behavior. It's also important that leaders themselves act in a way that's consistent with the values they want to see enacted more broadly.

Habitual Practices: The power of culture is often expressed in the small, repeated actions that become habitual. For example, Pixar's practice of holding candid "braintrust" meetings where creative ideas are dissected and debated creates an environment where innovation is routine. Leaders can create rituals or regular meetings that reinforce openness and collaboration , turning them into powerful symbols that reinforce the organization's culture.

Learning and Development: Cultures that prioritize learning communicate to employees that growth is both expected and supported. Amazon's " Career Choice" program is a testament to its investment in employee development, covering tuition for in-demand fields. Leaders can foster a culture of learning by actively investing in employee development and creating clear pathways for career advancement.

Psychological Safety: At the heart of a thriving culture is the sense of psychological safety, a term coined by Harvard University professor Amy Edmondson, which describes an environment where individuals feel comfortable expressing themselves without fear of retribution. Google, for example, found that its teams with high psychological safety were more successful than those with lower psychological safety. Leaders can cultivate this by modeling vulnerability, encouraging open dialogue, and celebrating learning from failures.

Recognition and Rewards: A culture that celebrates achievements—both big and small—can significantly boost morale and productivity . Salesforce, through its "Ohana Culture," has created a sense of community and belonging where recognition is part of the everyday experience. Leaders can implement recognition programs that allow peers to acknowledge each other's contributions, making recognition a regular part of the organizational rhythm.

Agility and Resilience : The most adaptable cultures are those that embrace change. Leaders can promote agility by encouraging a mindset of continuous learning and by designing systems that are flexible and responsive to feedback, ensuring the organization can navigate and thrive amidst disruptive change.

Creating a High-Performance Culture

Creating a culture that promotes high performance requires a deep psychological understanding of human behavior within a business context. By carefully crafting and nurturing the elements that constitute culture, leaders can foster an environment that not only drives innovation and high performance but also leads to a sense of purpose and belonging among its members. Building a cohesive community focused on achieving purposeful goals is a critical imperative for making organizations and the world a better place.

https://www.nytimes.com/2016/02/28/magazine/what-google-learned-from-it…

Edmondson, Amy and Lei, Zhike (2014). Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct, Annual Review of Organizational Psychology and Organizational Behavior, Vol. 1:23-43.

Kaplan, S. (2017). The invisible advantage: How to create a culture of innovation . Greenleaf Book Group Press.

Soren Kaplan, Ph.D. , is an author, keynote speaker, leadership development consultant, and affiliate at the Center for Effective Organizations at the University of Southern California.

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How to Improve Organizational Culture

by Greg Rollins | Mar 28, 2020 | Coaching in the Workplace

For many companies, COVID-19 has accentuated and brought to light problems in organizational culture .

Do you need to look at changing your organizational culture? 

If you’re not sure, here is a checklist  that might help you answer that question, and might surprise you:

1. Unhealthy leadership behaviors?

2. Low employee motivation?

3. Too many/too long meetings not getting anywhere?

4. Too much change all at once?

5. Teams and functions resentful of each other?

6.  Diversity and inclusion not really celebrated?

7. Too much red tape in processes and decision-making?

t Don’t worry if many of the above choices apply to your organization. If so — you’re not alone. A recent global Gallup survey shows that 85% of employees around the world are not happy at work —whoa!

That is a shocking and sad number, considering we spend most of our conscious lives at work.

Working with clients for years in organizational change management and leadership development, I have seen one thing common about toxic organizational cultures: Employees are passive usually — they have pretty much given up.   It can be demotivating and draining working in an unhealthy work environment, leading to high turnover, which ends up costing companies significantly. 

Here are a few small ways to make a BIG change in organizational culture through your leadership style:

Ask More Questions 

A common problem in organizations is the “blame game.” It’s very easy for teams and individuals to blame one another for things not going as planned.

And, indeed, it is very frustrating when teams rely on one another to perform their functions, and something goes awry. 

But many times, we become so angry and resentful towards others that we miss their side of the story. 

Instead, encourage openness to asking and understanding the point of view of counterparts before blaming and pointing fingers. 

Keep an open mind and be curious about the root cause of a problem, which 9 times out of 10 has nothing to do with the person, but more likely has to do with a faulty process in place. 

Encourage Ideas Over Complaining

Many employees can devolve into complaining when things aren’t going right and you will probably catch wind of it. Complaining certainly doesn’t do much to help the work atmosphere. 

If you notice someone complaining or talking negatively about what’s not working, ask them: “What would work? How do you think we can make it better?” 

Instead of talking negatively about what isn’t working , try to refocus discussions on the things that ARE working and suggest ideas for improvements.  You will be surprised to see how drastically this leadership tip helps in changing organizational culture. 

Luckily, there are a plethora of great tools for project management and collaboration, especially designed for team alignment issues. Tools like Asana, Trello, JIRA, and others can be a great help in communication problems, when used correctly. 

Think and Speak in Terms of Organizational Priorities

Sometimes, even leaders can lose sight of the bigger picture when we are so busy in the day to day. 

Take time periodically to assess the organization as a whole and look at how an inefficiency in the workplace may be impacting broader, strategic goals, and speak to that

Speak in terms of the organization’s strategic goals rather than in terms of your own interests, which will inspire others to think and act from the same perspective.

Utilize innovative forms of communication to do so – you might start a monthly leadership vlog or podcast, host webinars, and use infographics to help get important messages across in an engaging manner. 

Suggest a New Kind of Event

Forget the virtual hours and trivia sessions and come up with something more creative that allows people to share more of themselves. 

How about a virtual open mic where employees can share their personal stories and interests and get to know one another? 

How about a Brainstorm Session, where employees can crowdsource their best ideas for making improvements in processes and tools?

Share Vulnerably

Along with asking questions, be open to the idea of sharing your own feelings with your organization. 

We are conditioned by society to act “tough,” keep work and feelings separate, and generally be defensive and guarded. Sometimes this isn’t the most productive way to handle things, though. 

Challenge yourself by sharing a more personal feeling and give your company or team a unique insight into your world. This role modeling by you will allow employees to feel more comfortable to do the same, creating a more open and positive workplace and increasing employee engagement. 

Encourage Others to Speak Up 

Workplace discrimination is extremely common and can happen for a multitude of reasons: age, race, gender, cultural heritage, sexual identity, and even personality type, to name just a few. 

If someone notices something that seems unfair, encourage them to choose to not just ignore it. If someone’s voice is not being included in a meeting, take the extra effort to ask that person’s opinion and include them in the discussion.

Take steps to create a more fair and equitable workplace, by being a role model for others on how to challenge the status quo.

Address the Problem, Bringing in Data and Research

A leader can do a lot to change organizational culture, but he/she still needs evangelists in the organization for the effort. It never hurts to have external, proven data to back up why changing organizational culture and keeping employees engaged is important. 

You will have no trouble finding this data if you do a Google search for “employee engagement business performance data,” as there are literally hundreds of studies showing how poor employee engagement leads to lower productivity and poor business performance. 

Share these studies at work to make others aware and hopefully catalyze some momentum for changing things.

Remember, there are literally millions of ways you have the power to change your company’s culture, even if it doesn’t always feel like it. 

These are just a few ideas to get your mind working — try them out with an open mind, stay consistent, and you’ll be amazed by the changes you see and feel.

Want to learn more about changing organizational culture?

Check out  www.culturecounts.io  for the team and leadership coaching we engage in with organizations to dramatically improve culture!

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Understanding and Developing Organizational Culture

The key to a successful organization is to have a culture based on a strongly held and widely shared set of beliefs that are supported by strategy and structure. When an organization has a strong culture, three things happen: Employees know how top management wants them to respond to any situation, employees believe that the expected response is the proper one, and employees know that they will be rewarded for demonstrating the organization's values.

Overview Background Business Case What Is Organizational Culture? Factors That Shape an Organization's Culture Creating and Managing Organizational Culture Practices to Develop Culture Communications Metrics Legal Issues Global Issues

Employers have a vital role in perpetuating a strong culture, starting with recruiting and selecting applicants who will share the organization's beliefs and thrive in that culture, developing orientation, training and performance management programs that outline and reinforce the organization's core values and ensuring that appropriate rewards and recognition go to employees who truly embody the values.

This toolkit covers the following topics:

• The importance of having a strong organizational culture.
• The employer's role in fostering a high-performance culture.
• Definitions of organizational culture.
• Factors that shape an organization's culture.
• Considerations in creating and managing organizational culture.
• Practices to ensure the continuity and success of an organization's culture.
• Communications, metrics, legal, technology and global issues pertaining to organizational culture.

An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Organizational culture sets the context for everything an enterprise does. Because industries and situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all organizations.

A strong culture is a common denominator among the most successful companies. All have consensus at the top regarding cultural priorities, and those values focus not on individuals but on the organization and its goals. Leaders in successful companies live their cultures every day and go out of their way to communicate their cultural identities to employees as well as prospective new hires. They are clear about their values and how those values define their organizations and determine how the organizations run. See  What does it mean to be a values-based organization?

Conversely, an ineffective culture can bring down the organization and its leadership. Disengaged employees, high turnover, poor customer relations and lower profits are examples of how the wrong culture can negatively impact the bottom line. See  Toxic Culture Top Reason People Quit .

Mergers and acquisitions are fraught with culture issues. Even organizational cultures that have worked well may develop into a dysfunctional culture after a merger. Research has shown that two out of three mergers fail because of cultural problems. Blending and redefining the cultures, and reconciling the differences between them, build a common platform for the future. In recent years, the fast pace of mergers and acquisitions has changed the way businesses now meld. The focus in mergers has shifted away from blending cultures and has moved toward meeting specific business objectives. Some experts believe that if the right business plan and agenda are in place during a merger, a strong corporate culture will develop naturally. See  Managing Organizational Change and Managing Human Resources in Mergers and Acquisitions.

Business Case

If an organization's culture is going to improve the organization's overall performance, the culture must provide a strategic competitive advantage, and beliefs and values must be widely shared and firmly upheld. A strong culture can bring benefits such as enhanced trust and cooperation, fewer disagreements and more-efficient decision-making.

Culture also provides an informal control mechanism, a strong sense of identification with the organization and shared understanding among employees about what is important. Employees whose organizations have strongly defined cultures can also justify their behaviors at work because those behaviors fit the culture. See  Toxic Workplace Cultures Hurt Workers and Company Profits .

Company leaders play an instrumental role in shaping and sustaining organizational culture. If the executives themselves do not fit into an organization's culture, they often fail in their jobs or quit due to poor fit. Consequently, when organizations hire C-suite executives, these individuals should have both the requisite skills and the ability to fit into the company culture.

See  SHRM Inclusive Workplace Culture Specialty Credential

What Is Organizational Culture?

An employer must begin with a thorough understanding of what culture is in a general sense and what their organization's specific culture is. At the deepest level, an organization's culture is based on values derived from basic assumptions about the following:

• Human nature. Are people inherently good or bad, mutable or immutable, proactive or reactive? These basic assumptions lead to beliefs about how employees, customers and suppliers should interact and how they should be managed.
• The organization's relationship to its environment. How does the organization define its business and its constituencies?
• Appropriate emotions. Which emotions should people be encouraged to express, and which ones should be suppressed?
• Effectiveness. What metrics show whether the organization and its individual components are doing well? An organization will be effective only when the culture is supported by an appropriate business strategy and a structure that is appropriate for both the business and the desired culture.

Culture is a nebulous concept and is often an undefined aspect of an organization. Although extensive academic literature exists relating to the topic of organizational culture, there is no generally accepted definition of culture. Instead, the literature expresses many different views as to what organizational culture is.

Organizational culture can manifest itself in a variety of ways, including leadership behaviors, communication styles, internally distributed messages and corporate celebrations. Given that culture comprises so many elements, it is not surprising that terms for describing specific cultures vary widely. Some commonly used terms for describing cultures include aggressive, customer-focused, innovative, fun, ethical, research-driven, technology-driven, process-oriented, hierarchical, family-friendly and risk-taking. See  6 Ways to Become a More Empathetic Organization .

Because culture is difficult to define, organizations may have trouble maintaining consistency in their messages about culture. Employees may also find it difficult to identify and communicate about perceived cultural inconsistencies. See  Defining Organizational Culture and Culture Conversation Starters .

Factors That Shape an Organization's Culture

Organizational leaders often speak about the unusual natures of their company cultures, seeing their domains as special places to work. But organizations such as Disney and Nordstrom, which are well-known for their unique cultures, are rare.

Most company cultures are not that different from one another. Even organizations in disparate industries such as manufacturing and health care tend to share a common core of cultural values. For example, most private-sector companies want to grow and increase revenues. Most strive to be team-oriented and to demonstrate concern for others. Most are driven, rather than relaxed, because they are competing for dollars and market share. Some of the cultural characteristics that distinguish most organizations include the following.

At the heart of organizations' cultures are commonly shared values. None is right or wrong, but organizations need to decide which values they will emphasize. These common values include:

• Outcome orientation. Emphasizing achievements and results.
• People orientation. Insisting on fairness, tolerance and respect for the individual.
• Team orientation. Emphasizing and rewarding collaboration.
• Attention to detail. Valuing precision and approaching situations and problems analytically.
• Stability. Providing security and following a predictable course.
• Innovation. Encouraging experimentation and risk-taking.
• Aggressiveness. Stimulating a fiercely competitive spirit.

Degree of hierarchy

The degree of hierarchy is the extent to which the organization values traditional channels of authority. The three distinct levels of hierarchy are "high"—having a well-defined organizational structure and an expectation that people will work through official channels; "moderate"—having a defined structure but an acceptance that people often work outside formal channels; and "low" —having loosely defined job descriptions and accepting that people challenge authority.

An organization with a high level of hierarchy tends to be more formal and moves more slowly than an organization with a low level of hierarchy.

Degree of urgency

The degree of urgency defines how quickly the organization wants or needs to drive decision-making and innovation. Some organizations choose their degree of urgency, but others have it thrust on them by the marketplace.

A culture with high levels of urgency has a need to push projects through quickly and a high need to respond to a changing marketplace. A moderate level of urgency moves projects at a reasonable pace. A low level of urgency means people work slowly and consistently, valuing quality over efficiency. An organization with high urgency tends to be fast-paced and supports a decisive management style. An organization with low urgency tends to be more methodical and supports a more considered management style.

People orientation or task orientation

Organizations usually have a dominant way of valuing people and tasks. An organization with a strong people orientation tends to put people first when making decisions and believes that people drive the organization's performance and productivity. An organization with a strong task orientation tends to put tasks and processes first when making decisions and believes that efficiency and quality drive organization performance and productivity.

Some organizations may get to choose their people and task orientations. But others may have to fit their orientation to the nature of their industry, historical issues or operational processes.

Functional orientation

Every organization puts an emphasis on certain functional areas. Examples of functional orientations may include marketing, operations, research and development, engineering or service. For example, an innovative organization known for its research and development may have at its core a functional orientation toward R&D. A hospitality company may focus on operations or service, depending on its historical choices and its definition in the marketplace.

Employees from different functions in the company may think that their functional areas are the ones that drive the organization. Organizational leaders must understand what most employees perceive to be the company's functional orientation. 

Organizational subcultures

Any organization can have a mix of subcultures in addition to the dominant culture. Subcultures exist among groups or individuals who may have their own rituals and traditions that, although not shared by the rest of the organization, can deepen and underscore the organization's core values. Subcultures can also cause serious problems.

For example, regional cultures often differ from the overall culture that top leadership tries to instill. Perhaps aggressiveness that is common in one area may not mesh with a culture emphasizing team building. Or an organization with a culture built around equality may have trouble if the national culture emphasizes hierarchy and expects people to bow to authority. Employers must recognize those differences and address them directly.

Creating and Managing Organizational Culture

An organizational culture tends to emerge over time, shaped by the organization's leadership and by actions and values perceived to have contributed to earlier successes. A company culture can be managed through the cultural awareness of organizational leaders and management. Managing a culture takes focused efforts to sustain elements of the culture that support organizational effectiveness. See  Addressing the Six Sources of Workplace Cultural Conflicts .

How culture develops

An organization's customs, traditions, rituals, behavioral norms, symbols and general way of doing things are the visible manifestation of its culture; they are what one sees when walking into the organization. The current organizational culture is usually due to factors that have worked well for the organization in the past. See  How to Create a Culture of Civility .

Founders typically have a significant impact on an organization's early culture. Over time, behavioral norms develop that are consistent with the organization's values. For example, in some organizations, resolution of conflicts is hashed out openly and noisily to create widespread consensus, whereas in other places disputes are settled hierarchically and quietly behind closed doors.

Though culture emerges naturally in most organizations, strong cultures often begin with a process called "values blueprinting," which involves a candid conversation with leaders from across the organization. Once the culture is framed, an organization may establish a values committee that has a direct link to leadership. This group makes sure the desired culture is alive and well. For values blueprinting to work, organizations must first hire people who live the values and have the competency needed to perform the job.

Sustaining a culture

The management of organizational culture starts with identifying a company's organizational culture traits or "artifacts." Artifacts are the core business activities, processes and philosophies that characterize how an organization does business day-to-day.

Identifying these traits—and assessing their importance in light of current business objectives—is a way to start managing culture. Three broad concepts help identify the traits specific to a culture:

• Social culture. This refers to group members' roles and responsibilities. It is the study of class distinctions and the distribution of power that exists in any group.
• Material culture. This involves examining everything that people in a group make or achieve and the ways people work with and support one another in exchanging required goods and services.
• Ideological culture. This is tied to a group's values, beliefs and ideals—the things people view as fundamental. It includes the emotional and intellectual guidelines that govern people's daily existence and interactions.

Leaders and managers within an organization should approach culture management by initially gaining an understanding of the common traits found in all businesses. Then, they should take the following steps to manage their organization's culture:

• Identify common artifacts or traits, including those from the standpoint of an organization's social, material and ideological culture.
• Convene groups of employees—representatives from all levels, functions and locations of the organization—to assess the validity, significance and currency of key artifacts.
• Subject those traits to a rigorous assessment of their underlying shared assumptions, values and beliefs.
• Summarize findings and share them with all participants to solicit additional insights.
• Create a culture management action plan. The plan should enhance traits that support corporate growth or organizational effectiveness and correct traits that might hinder a company's advancement.

Typically, shared assumptions and beliefs originate with an organization's founders and leaders. Because those beliefs proved successful (otherwise the company would not exist and the leaders would not be in their positions), often they go unchallenged; however, those assumptions and beliefs might be outdated and may hinder future success. See 6 Steps for Building an Inclusive Workplace and The Relationship Between Culture and DE&I .

Practices to Develop Culture

When an organization does a good job assessing its culture, it can then go on to establish policies, programs and strategies that support and strengthen its core purpose and values. In aligned organizations, the same core characteristics or beliefs motivate and unite everyone, cascading down from the C-suite to individual contributors.

There are many tools for developing and sustaining a high-performance organizational culture, including hiring practices, onboarding efforts, recognition programs and performance management programs. The biggest challenge is deciding how to use these tools and how to allocate resources appropriately.

Hiring practices

Effective hiring practices can help an organization capitalize on its culture. Traditionally, hiring focuses primarily on an applicant's skills, but when a hire's personality also fits with the organization's culture, the employee will be more likely to deliver superior performance.

On the other hand, ill-fitting hires and subsequent rapid departures cost approximately 50 percent to 150 percent of the position's annual salary. Unfortunately, nearly one in three newly hired employees' leaves voluntarily or involuntarily within a year of hiring, and this number has been increasing steadily in recent years.

Some hiring practices to ensure cultural fit include:

• Looking at each piece of the organization's vision, mission and values statements.  Interview questions  should hone in on behaviors that complement these areas. For example, if the organization works with a lot of intensity, then job applicants should display that natural intensity to be considered for hire.
• Conducting a cultural fit interview. Ask questions that elicit comments about organizational values such as honesty or integrity. If a candidate's description of the worst place he or she ever worked sounds just like the organization where he or she is interviewing, the candidate probably will not be successful.
• Leaving discussion of company culture for later. Do not tell candidates about culture up front. First, listen to what they have to say about their experiences and beliefs. This tactic will reveal more candid responses to help determine whether they are a fit for the organization.
• Making sure at least three people are involved in the hiring process. Different people will see and hear different things. These varied perspectives give a clearer understanding of the person being considered for hire.

Searching for employees who will fit in seamlessly can have drawbacks. The biggest mistake an organization can make is to paint an inaccurate picture of itself as it tries to attract candidates. If new hires discover they have been sold a bill of goods, they will not be happy; they will probably not stick around, and, while they are around, morale will decline.

Another possible drawback is that people are more reluctant to take negative actions against people like themselves. As a result, mediocre workers are more likely to stay employed if they share the cultural values. Similarly, although an organization's comfort level is palpable when the culture is aligned, experts say, too much comfort can result in groupthink and complacency.

Onboarding programs

The best  employee onboarding  process teaches newcomers the employer's value system, norms and desired organizational behaviors. Employers must help newcomers become part of social networks in the organization and make sure that they have early job experiences that reinforce the culture.

Reward and recognition programs

These programs are key mechanisms employers can use to motivate employees to act in accordance with the organization's culture and values. For example, if teamwork is a core value, bonuses should value teamwork and not be based on individual performance. Employers should also put the spotlight on those who personify the company's values. See  Employee Recognition Tech Must Align with Company Culture .

Performance management programs

Employees who share values and aspirations tend to outperform those in environments that lack cohesiveness and common purposes. Performance management programs can greatly affect corporate culture by clearly outlining what is expected from employees as well as by providing a feedback tool that informs employees about proper behavior. See  Performance Management That Makes a Difference: An Evidence-Based Approach .

Communications

Conflicting messages regarding corporate culture may create distrust and cynicism, which can prompt, or help employees justify, actions as deleterious as embezzlement. Experts say that cultural inconsistencies may also cause workers to grow discouraged, to believe management is disingenuous, to doubt statements from higher-ups and to be less inclined to give their best effort.

Organizations may be investing significant time and money in creating a culture but may not be reaping the commensurate rewards—especially if executives, supervisors and rank-and-file employees have differing perceptions of the company's culture. Employers must therefore ensure that the organization clearly and consistently communicates its culture to all employees. See  HR's Role in Creating a Culture of High Trust: Q&A with Richard Fagerlin.

Assessing organizational culture is a crucial step in developing sound strategies that support enterprise objectives and goals. But how do you measure something as potentially tough to describe as culture? After identifying the key dimensions of culture such as values, degree of hierarchy, and people and task orientations, performing these next steps will help organizations assess culture:

• Develop a cultural assessment instrument. This instrument should enable members of the organization to rate the organization on the key cultural dimensions, as well as on aspects of the organization not covered on the assessment.
• Administer the assessment. Survey respondents should include individuals at all levels, functions, divisions and geographical units of the organization.
• Analyze and communicate about assessment results. Leaders and managers should discuss areas of agreement and disagreement about the organization's culture.
• Conduct employee focus groups. Just because top management leaders agree on organizational culture does not mean that all employees see things that way.
• Discuss culture until consensus forms around key issues. Focus on "Who are we?" and "What makes us who we are?" Organizations that decide that where they are now is not where they want to be may need to look at moving the organization to embrace a different culture.

Cultural assessments, and other activities such as cultural audits and 360-degree feedback, may also help uncover cultural inconsistencies. Then leaders can eliminate the inconsistencies. For example, if customer service is a focus of the company's culture, evaluate how much time employees spend visiting customer sites, how much interaction they have with customers, what customer service training they receive and other indicators of a customer service focus. See  The New Analytics of Workplace Culture and Building a Data-Driven Culture Health Index .

Legal Issues

Employers that emphasize cultural fit in their recruitment and selection process can be vulnerable to discrimination claims if they are not careful. Employers should ensure that hiring practices and selection decisions based on a cultural fit rationale do not result in discriminating against any applicants who may not be "just like" the selectors.

Employers should also be aware that certain types of organizational cultures (for example, cultures that are highly paternalistic or male-dominated) may tend to perpetuate disparities in promotions, compensation and other terms of employment. Those disparities may violate anti-discrimination laws. 

Global Issues

Research suggests that national culture has a greater effect on employees than the culture of their organization. Organizational leaders should understand the national cultural values in the countries in which the organization operates to ensure that management and company practices are appropriate and will be effective in operations in those countries. National cultural differences should be considered when implementing organizational culture management initiatives in global businesses.

Managers must be able to respond to nuances in communication styles, as well as deal with different expectations that employees have of their leaders across national cultures. Not meeting those expectations may doom the global organization's chance for success in particular countries.

These issues become even more complex in global business mergers. Success in international mergers depends on the merged organization's willingness to enable people with different cultural perspectives to engage in meaningful and valuable discussions about the new business.

Helping Expatriate Employees Deal with Culture Shock

3 Steps in Aligning Culture Across the Globe

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The symbiosis of culture and strategy in organizational success

Organizational culture is the silent yet potent force that shapes decisions, molds behaviors and sets the stage for innovation. Culture is vital in organizational strategic thinking, serving as the compass and the map that guide an organization toward its future vision, according to Peter Drucker, management and leadership consultant.

The interplay between culture and strategy is a dance of possibilities. For an organization to reach the pinnacle of its potential, its culture and strategy must align and resonate with a shared purpose. They must be consistent, complementary and mutually reinforced. A strategy that is incompatible with the organization’s culture is akin to a seed planted in barren soil — it may sprout, but it will not flourish. For profound and sustainable success, the complementary relationship of culture and strategy is not merely desirable, it is indispensable.

Elements to consider for culture design in healthcare organizations

• Leadership style : The approach leaders take can foster a culture of innovation or compliance.  This sets the tone for the type of culture employees experience.
• Employee engagement : The level of commitment from members of the organizational team drives a culture of excellence or mediocrity.  The key ingredient is open and transparent communication.
• Organizational structure and ownership : Hierarchical and flat structures each foster different cultural dynamics, potentially leading to cultures of control or empowerment, respectively. The impact of external factors on organizational culture varies depending on the size and type of the organization — small or large, or corporate or private.
• Market dynamics : Competitive pressures can shape a culture of agility or resistance.
• Technological advancements : Accepting or rejecting technological changes can encourage a culture of continuous learning or obsolescence, respectively.
• Societal trends : Social movements can influence a culture through inclusivity or exclusivity.

Culture design decisions in organizational strategy

An organization’s strategic success hinges on leadership’s culture design decisions, which reflect their level of commitment to factors that shape the workplace and employee behavior.

Staff development and training

• Commitment : Encourage continuous learning and professional growth.
• Impact : Equips employees with the skills and knowledge necessary to adapt to changing market demands and foster innovation.

Teamwork, cooperation and respect

• Commitment : Create a collaborative atmosphere where teamwork is valued.
• Impact : Enhances problem-solving capabilities and promotes a supportive work culture that respects diverse perspectives.

Written and enforced policies and processes

• Commitment : Establish clear guidelines and expectations through formal documentation of policies and standards.
• Impact : Ensures consistency and fairness in operations, aiding in compliance and risk management.

Fair enforcement of standards and expectations

• Commitment : Apply rules and standards impartially across the organization.
• Impact : Builds trust and integrity, essential for a positive organizational reputation and team member morale. Teams value consistency in leadership decisions. 

Clearly defined safety, quality and service standards

• Commitment : Set high benchmarks for safety, quality and customer service.
• Impact : Drives excellence and competitive advantage, leading to customer satisfaction and loyalty.

These culture design decisions are not standalone; they are interdependent and cumulatively contribute to the strategic success of an organization. A strategic approach to culture design can propel an organization toward long-term success and sustained competitiveness.

The dynamics of organizational culture and its strategic implications

Organizational culture is the collective embodiment of values, operating standards, norms and practices that permeate every level of a company. It is the lifeblood of the organization, driven by ownership and leadership, and it manifests in both tangible and intangible ways. Culture can evolve organically or be deliberately designed, but it will inevitably shape the organization’s identity.

The organic development of culture

• Even in the absence of intentional design, a culture will emerge, influenced by the collective interactions, behaviors and decisions of those in the organization.
• Leaders play a pivotal role in this evolution, as their actions and attitudes set the tone for the organization’s cultural climate.

The double-edged sword of subcultures

• Subcultures and informal groups arise naturally within organizations, often reflecting the diversity of thought and experience among employees.
• While these subcultures can foster innovation and camaraderie, they may also inadvertently create silos or diverge from the overarching strategic direction.
• The challenge lies in recognizing the value these subgroups bring while aligning their contributions with the organization’s strategic objectives.

Strategic alignment and cultural design

• A well-defined organizational culture serves as a strategic asset, guiding decision-making and ensuring coherence in pursuit of common goals.
• Without a clear cultural framework, subcultures may exert disproportionate influence, potentially derailing operational success and strategic initiatives.
• It is therefore crucial for organizations to consciously develop a planned culture that not only reflects their core values but also supports their strategic ambitions.

Case study: medical group transformation – ECU physicians, 2015 to 2021

In 2015, new operational leadership was installed for Brody School of Medicine’s ECU Physicians faculty practice plan (FPP). Facing worsening financial conditions, the medical group appointed a new chief operating executive and director of revenue cycle, both seasoned physician executives, as well as respected clinical leaders as chief medical officer and chief nursing officer.

The new team encountered an organization deeply entrenched in silos, with each clinical department developing its own culture based on specific goals and needs. Clinic team members identified more with their respective departments than with the broader medical group. 

A few months after settling in, the new operational team established goals focused on integrating the various practices more closely. They set out to establish robust quality, operational and uniform financial standards, complete with monthly reporting metrics. 

The team recognized they needed to make some immediate changes to stabilize the practice, while also engaging team members and physicians for long-term success. This involved facilitating a culture change and implementing the new operational standards. To encourage team engagement, leadership formed new committees dedicated to the key focus areas: clinical quality, operational leadership and financial revenue cycle. These teams shared members’ input and suggestions for new policies, processes and initiatives.

Between 2015 and 2021, the practice transformed from a siloed organization into a more integrated medical group. Staff understood the vision, mission and goals, leading to significantly enhanced financial standing, operational efficiency and patient satisfaction.  Additionally, the greater integration helped the practice weather the COVID-19 pandemic successfully and emerge stronger.

Leadership plays a crucial role in shaping and maintaining an organization’s culture. When leaders overlook the importance of strategic planning and cultural stewardship, they risk creating an environment where achieving organizational goals becomes increasingly challenging. Here’s why:

• Lack of direction : Without clear planning and communication, employees may lack understanding of the organization’s direction, leading to misaligned efforts and wasted resources.
• Erosion of engagement : Neglecting culture design can lead to multiple subcultures that disengage team members’ focus on the organization’s goals, reduce productivity and innovation.
• Inconsistent execution : A poorly maintained culture often leads to inconsistent practices, undermining the organization’s ability to execute strategies effectively.

For leaders to drive their organizations towards success, they must actively engage in defining, communicating and nurturing the organizational culture, aligning it with strategic objectives to ensure consistent goal achievement.

Delicately balancing culture and strategy is crucial. Organizations must nurture a culture that mirrors identity and bolsters strategic success, empowering the workforce to achieve future goals. 

Robert Jacob LaGesse , MSM, FACHE

Bob LaGesse is the Chief Operations Executive and also serves as the Interim Executive Director for ECU Physicians. He joined ECU Physicians in July 2015 from his previous position as Senior Vice President and Chief Administrative Officer for Physician Practices at Phoebe Putney Health System in Albany, Ga. Bob has 45 years of experience in healthcare management in a variety of organizations for profit, not-for-profit and academic settings. His experience includes 27 years in physician practice leadership positions in private practice, hospital and corporate-owned practices. He has a master of science degree in management from Troy University, is a Fellow in the American College of Healthcare Executives and is a Certified Medical Practice Executive in the American College of Medical Practice Executives.

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The Importance of Organizational Culture Essay

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What is organizational culture and why is it essential for a healthy and strong organization that works efficiently? The organizational culture essay below answers these questions. It focuses on the characteristics and benefits of the issue.

Introduction

Organizational culture is an important aspect of achieving organizational success. Every manager should strive to develop an organizational culture that will facilitate easy transformation of the organization through change embracement y employees. However, managers face challenges such as change resistance by employees.

Resistance to change is caused by fear of learning new skills, fear of new and additional responsibilities, fear of power shift, leadership, or management, and fear of stress that results from change (Hirschhorn ,2002). Organizational culture and change is most valuable to an aspiring manager because it they form the basis of organizational success.

They determine employees’ job satisfaction, motivation, and commitment towards achievement of organizational goals and objectives. Developing an appropriate organizational culture that guarantees success is difficult. However, aspiring managers should strive towards developing it because without it, organizational success remains a mirage.

Why Is Organizational Culture Important?

Managers should work towards introducing change in the organization to hasten achievement of organizational goals (Hirschhorn, 2002). Resistance to change by employees is the main challenge encountered by managers during the process of introducing change. However, with an appropriate strategy, managers can introduce change effectively and efficiently without causing chaos.

According to Hirschhorn (2002), change can be successfully introduced using three different campaign strategies. These include political, marketing, and military campaigns. The three campaigns combine different strategies to facilitate introduction of change in an organization.

Political campaign facilitates development of change initiatives through formation of a coalition that supports and guides change initiative (Hirschhorn, 2002).

A marketing campaign focuses on employee’s feelings and attitudes towards change by explicating potential benefits of embracing and executing change. On the other hand, a military campaign facilitates channeling of management’s attention and time to the change initiative (Hirschhorn, 2002).

Organizational culture determines level of employee job satisfaction, which is an ingredient of organizational success. Organizational culture affects employees’ attitudes, behaviors, and performance at the workplace. One of the characteristics of an efficient organizational culture is a satisfying workplace. A satisfying workplace is one of the strategies implemented by managers to improve job satisfaction.

To improve job satisfaction, management reform is necessary (Yang and Kasssekert, 2009). Examples of such reforms include Titl5 Exemption, contracting out, and managing for results. Under Title 5 exemption, managers should strive towards increasing managerial prudence in improving efficiency of human resource management (Yang and Kasssekert, 2009).

They should include performance rewards, introduction of simple hiring procedures, and workforce restructuring. On the other hand, contracting out is important because it reduces costs, improves quality of service delivery, increases efficiency, and increase job satisfaction (Yang and Kasssekert, 2009).

In addition, mangers should create an environment that encourages employees to trust in the leadership of the organization. Performance appraisal should strive towards improving employees’ performance and not victimizing them.

According to Kegan and Lahey (2001), it is important for managers to understand why employees resist change in order to introduce it without causing chaos. They argue that change to resistance is because of a phenomenon referred to as competing commitment. Effective management strives towards assisting employees subdue limitations that prevent them from embracing change.

This includes involving employees in diagnosing causes of immunity to change (Kegan and Lahey, 2001). Competing commitments are both a problem to employees and managers. Eradicating resistance to changes starts with uncovering employees’ competing commitments.

One aspect of competing commitments is assumptions. Employees need to realize that assumptions determine their reality and should strive to question them (Kegan and Lahey, 2001).

Employee empowerment is another factor that contributes to a strong organizational culture. However, without an effective work environment and good leadership, employee empowerment is impossible. Empowered employees are committed to achieving organizational goals by improving performance and embracing innovation (Fernandez and Moldogaziez, 2012).

Benefits of employee empowerment include quick retraction from errors, learning from mistakes, and development of innovative ways of service delivery (Fernandez and Moldogaziez, 2012). Empowered employees work harder and smarter thus improving performance. They thus exhibit flexibility in task execution.

Change is also important in enhancing employee performance because of the uncertainty of the modern business environment. Therefore, change is an important aspect of ensuing organizational adaptability to change. Employees must be able to adapt to change to enhance organizational survival and sustainability (Fernandez and Moldogaziez, 2012).

Change encourages innovation because it introduces new ways and procedures of doing things. It is imperative for managers to introduce change in the organization to encourage innovation and achievement of organizational goals.

Organizational culture and change are important aspects of achieving organizational success. They are valuable to aspiring managers in the public sector because of several reasons. They encourage innovation, improve employee performance, and enhance the efficiency of an organization. A strong organizational culture enhances job satisfaction among employees.

On the other hand, change encourages innovation, which helps an organization survive in the highly uncertain modern business environment. Employee empowerment and job satisfaction are core factors that determine level of organizational success. Any aspiring manager should focus managerial efforts towards creating a strong organizational culture and introducing change in the organization.

Fernandez, S., and Moldogaziev, T. (2012). Using Employee Empowerment to Encourage Innovative Behavior in the Public Sector. Journal of Public Administration and Theory , 13, 1-33.

Hirschhorn, L. (2001). Campaigning for Change. Harvard Business Review , 12(4), 98- 104.

Kegan, R., and Lahey, L. (2001). Real Reason People Won’t Change. Harvard Business Review , 4(3), 84-92.

Yang, K., and Kasssekert, A. (2009). Linking Management Reform with Employee Job Satisfaction: Evidence from Federal Agencies. Journal of Public Administration and Research Theory , 20, 413-436.

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Organizational tips for academic essays

Published on November 10, 2014 by Shane Bryson . Revised on July 23, 2023.

This article presents some tips to help you figure out how best to structure your essay .

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Table of contents

Four tips for organization, other interesting articles.

In general, the purpose of the essay should dictate the organization of the essay—ask yourself what claims you need to establish in order for your reader to believe that your main claim is right. The claims that help establish your main claim are called “supporting claims.”

In many cases, each supporting claim will get a paragraph. When you’re outlining, try to phrase these supporting claims as rough topic sentences . In some cases, these supporting claims will also require some argument in order for your reader to believe them. If this happens, consider adding an additional argument or two in separate paragraphs to help establish your supporting claim.

Once you get a sense of the supporting claims that will form the basis of your paragraphs , consider the following tips:

Arguments usually proceed from the simplest claim to the most complex

In other words, the body of a good argumentative essay often begins with the more simple and widely accepted claims, and then moves to the more complex and contentious ones. There are a couple of reasons for this:

• Often, a reader must understand the more basic claims before she can understand the more complex claims.
• If you begin with a point your readers agree on without much trouble, you can build on this agreement to convince them of something more contentious.

Give the background early

If you have so much background information that it cannot be given precisely enough in the introduction , this information will usually lead the body of the essay , or the section that it is relevant to.

Define terms as needed

Technical language should be defined as or before it’s used—never wait very long to define a term you’ve used:

• If you can, define your terms as you use them.
• If you have so much technical language that defining terms as you use them is too interruptive, take a paragraph or so to define the terms and show how they relate to each other.

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Essay Service Examples Business Organizational Culture

Organizational Culture Essay

A Critical Approach towards an Integrative Dynamic Framework for Understanding and Managing Organizational Culture Change

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• Intentionally develop a transparent, clear, friendly, genuine, effective, and consistent communication strategy at all levels of the organization about performance enhancement and the role of culture. For example, scheduling regular sessions during which two-way communication is encouraged, plans are clarified, rumors are exposed and resolved, and answer questions are dealt with.
• Introduce policies that will build and enhance motivation and participation throughout the organizational culture change process. Participatory approach centered on flexibility and adaptability would trigger unwavering buy-in at all levels of the organization.
• Recognizing the importance of a defined culture on employees’ sociability and solidarity, and how it affects their performance bearing in mind that employees are the core asset of any organization. As such care, sensitivity and diplomacy should be practiced in good faith and beyond a reasonable doubt.
• The importance of considering the fit or match between strategic initiatives and organizational culture when it comes to determining how to embed a culture that produces a competitive advantage.
• That any organizational culture requires continuous monitoring and assessment to ensure effective management. This should be consistent with the design and implementation tools of the intended organizational culture change and management.
• A Framework for Achieving Organizational Culture Change ... (n.d.). Retrieved from https://journals.tdl.org/llm/index.php/llm/article/viewFile/7216/6408
• A Process Model of Organizational Change in Cultural Context. (n.d.). Retrieved from https://www.scribd.com/document/209972652/A-Process-Model-of-Organizational-Change-in-Cultural-ContextHartnell,
• C. A., Ou, A. Y., & Kinicki, A. J. (1970, January 01). Organizational culture and organizational effectiveness: A meta-analytic investigation of the competing values framework's theoretical suppositions. - Semantic Scholar. Retrieved from https://www.semanticscholar.org/paper/Organizational-culture-and-organizational-Hartnell-Ou/0d6f960dd2dd653aaaeab9ade231795832519587Kz5016b.
• (n.d.). Hatch1993.pdf - The Dynamics of Organizational Culture... Retrieved from https://www.coursehero.com/file/29816418/Hatch1993pdf/
• Managing Cultural Change in a Corporation - Nano Tools for Leaders. (n.d.). Retrieved from https://executiveeducation.wharton.upenn.edu/thought-leadership/wharton-at-work/2014/09/managing-culture-change/
• Organizational culture and change management practice in ... (n.d.). Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/75848/Wanjohi_Organisational culture and change management practice in the Kenyan media industry.pdf?sequence=4&isAllowed=y
• Organizational culture: The case Turkish construction of ... (n.d.). Retrieved from https://www.researchgate.net/profile/Heyecan_Giritli/publication/235298321_Organizational_culture_The_case_of_Turkish_construction_industry/links/0deec52273369335da000000.pdf
• ReadingLists. (n.d.). Retrieved from https://anglia.rl.talis.com/items/93DE3759-29C1-43A2-34AF-04B13E116A34.html
• The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings. (2003, October 13). Retrieved from https://www.sciencedirect.com/science/article/pii/S104898430300050X
• Umuteme, O. (n.d.). EXPLORING THE IMPORTANCE OF AN INTEGRATIVE APPROACH IN ANTICIPATING AND MANAGING ORGANISATIONAL CULTURE. Retrieved from http://www.academia.edu/36273387/EXPLORING_THE_IMPORTANCE_OF_AN_INTEGRATIVE_APPROACH_IN_ANTICIPATING_AND_MANAGING_ORGANISATIONAL_CULTURE

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• DOI: 10.61801/ouaess.2023.2.32
• Corpus ID: 269934323

The Connection between Business Ethics and the Organizational Culture

• Florina Mihai Leta
• Published in Ovidius University Annals… 31 January 2024

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Four ways to improve employee engagement.

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Chris Dyer- Leadership Speaker , Bestselling Author on High Performing Culture, CEO.

Employee engagement matters more than you may think. It is a critical driver of business success, influencing everything from job satisfaction and turnover rates to performance outcomes and profitability.

But recent trends are troubling.

Employee engagement is on the decline, hitting an 11-year low in Q1 2024. And this downward trajectory is likely to continue if companies don’t start taking proactive measures to address the issue.

To combat this continued decline in engagement, companies need to focus on effective, sustainable strategies.

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Trump assassination attempt: here’s what we know, fbi believes trump rally shooter acted alone: what we know about thomas matthew crooks, be flexible.

It’s natural to look for someone or something to blame, and remote work often becomes the scapegoat for declining engagement.

However, research suggests the opposite is true. An IBI study conducted in 2022 found that remote and hybrid employees were 22% more productive, 21% more satisfied and 51% more highly engaged.

Yet, there is still a consistent push to return to the office and the rigidity we became accustomed to in a pre-Covid-19 world.

Companies need to meet their employees where they are. And the truth is, 98% of workers want to work remotely at least some of the time.

In fact, nearly half of employees (47%) would quit or actively look for a new job if their company demanded a return to office. And 42% of office workers would take a 10% pay cut to have the flexibility to work remotely. Of those looking for new positions, only 16% of white-collar workers would consider a role that was fully in-office.

Employees want more flexibility. So, be more flexible.

Up The Stakes

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This can look like stock options or employee ownership, whether it's an employee stock ownership plan (ESOP), worker cooperative or direct employee ownership.

It is important to note that not all approaches effectively increase engagement. Tenure for teachers is intended to provide job security. However engagement often declines the longer an employee stays with a company, regardless of tenure.

Unions, while beneficial in many respects, actually account for a decline in engagement. Data from Gallup suggests that union employees are, on average, less engaged than non-union employees. They are also more actively disengaged at 23% vs. 15% of non-union workers.

Offer employees a stake in the company, but make sure it’s one that actively engages them in the business’ performance and profitability.

Communicate Better

The importance of effective communication channels between employer and employee cannot be overstated. A recent study by Peakon that compiled 11 million comments from employees in 160 countries concluded that “two-way dialogue between employees and employers is something critical for employee engagement.”

Transparency is also key. When organizations prioritize transparency, they cultivate an environment of trust and accountability. Employees feel empowered when they have visibility into decision-making processes and understand the reasoning behind strategic initiatives.

By fostering open, two-way dialogue and transparency, companies can build stronger relationships with their employees. Employees who feel trusted and valued by their employers are more productive and more actively engaged.

Shift Organizational Culture

Businesses and company leadership are quick to try and lay blame elsewhere, but the root cause of the decline in employee engagement typically lies within the company—more specifically, the company culture.

To truly increase engagement, you need to shift the organizational culture. That’s what top-performing organizations—which have 7x the national engagement average —have done.

Organizational culture includes not only shared values, attitudes, behaviors and standards but communication practices, management style, flexibility and more.

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Exploring purpose-driven leadership: theoretical foundations, mechanisms, and impacts in organizational context.

1. Introduction

2. theoretical perspectives on leadership: an evolutionary analysis, 3. purpose-driven leadership: a new perspective on leadership, 4. methodology.

• Conceptualization of Purpose-Driven Leadership.
• Importance of Purpose-Driven Leadership in contemporary research and practice.
• Theoretical foundations of Purpose-Driven Leadership.
• Mechanisms and impacts of Purpose-Driven Leadership.
• The role of purpose in navigating times of VUCA.
• Measurement approaches for purpose in leadership.

5. Findings

5.1. purpose-driven leadership research landscape, 5.2. purpose, organizational purpose, and purpose-driven leadership.

• Consistency: Purpose does not manifest as a fleeting intention but is grounded in its enduring nature ( Gavarkovs et al. 2023 ; Jasinenko and Steuber 2023 ; Knippenberg 2020 ). Demonstrating resilience against ephemeral shifts in external conditions or situational variances, purpose consistently maintains its vigor and steadfastness ( Rindova and Martins 2023 ; Trachik et al. 2020 ). It acts as a constant lodestar amid the dynamic terrains of both personal and professional spheres ( Bhattacharya et al. 2023 ; Qin et al. 2022 ; Rindova and Martins 2023 ).
• Generality: In contradistinction to a limited, task-centric objective, purpose is distinguished by its comprehensive scope ( By 2021 ; Gavarkovs et al. 2023 ; Jasinenko and Steuber 2023 ). Instead of being confined to proximate tasks or circumscribed aims, purpose spans a more expansive purview ( By 2021 ; Gavarkovs et al. 2023 ; Jasinenko and Steuber 2023 ). This ubiquity of purpose guarantees its applicability across multifarious contexts ( By 2021 ; Gavarkovs et al. 2023 ; Jasinenko and Steuber 2023 ).
• Two dimensions: - Internal Dimension: The internal dimension of purpose refers to the individuals’ intrinsic motivations and impulses, which are connected to their sense of purpose ( Crane 2022 ; Knippenberg 2020 ). It serves as a source of meaning, supporting the rationale of every decision, direction, or objective delineated ( Handa 2023 ; Jasinenko and Steuber 2023 ). This introspective aspect emphasizes the congruence and alignment between an individual and their purpose ( Gavarkovs et al. 2023 ; Jasinenko and Steuber 2023 ). - External Dimension: Beyond its internal impact, the influence of purpose extends to the external environment, through the efforts generated by the individual within their context ( By 2021 ; Gavarkovs et al. 2023 ; Handa 2023 ; Jasinenko and Steuber 2023 ). This is underpinned by the individual’s commitment to promoting positive change in a broader environment ( Ocasio et al. 2023 ; Qin et al. 2022 ).
• Daily embodiment and expression: Purpose manifests as a palpable instantiation in quotidian activities since it is part of every decision and action made ( By 2021 ; Jasinenko and Steuber 2023 ). Such perennial articulation provides consistency and influences daily activities ( Bronk et al. 2023 ; Hurth and Stewart 2022 ; Ocasio et al. 2023 ).

5.2.1. Attributes of Purpose-Driven Leadership

5.2.2. purpose-driven leadership construct conceptualization, 5.3. theoretical foundations of purpose-driven leadership, 5.4. mechanisms and impacts of purpose-driven leadership, 5.4.1. potential antecedents, 5.4.2. potential outcomes, 5.4.3. potential mediators, 5.4.4. potential moderatos, 5.5. purpose-driven leadership as a guiding light, 5.6. measurement approaches for purpose-driven leadership, 6. discussion, 7. conclusions, supplementary materials, author contributions, data availability statement, conflicts of interest.

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Ribeiro, M.F.; Costa, C.G.d.; Ramos, F.R. Exploring Purpose-Driven Leadership: Theoretical Foundations, Mechanisms, and Impacts in Organizational Context. Adm. Sci. 2024 , 14 , 148. https://doi.org/10.3390/admsci14070148

Ribeiro MF, Costa CGd, Ramos FR. Exploring Purpose-Driven Leadership: Theoretical Foundations, Mechanisms, and Impacts in Organizational Context. Administrative Sciences . 2024; 14(7):148. https://doi.org/10.3390/admsci14070148

Ribeiro, Marco Ferreira, Carla Gomes da Costa, and Filipe R. Ramos. 2024. "Exploring Purpose-Driven Leadership: Theoretical Foundations, Mechanisms, and Impacts in Organizational Context" Administrative Sciences 14, no. 7: 148. https://doi.org/10.3390/admsci14070148

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New Atlassian research on developer experience highlights a major disconnect between developers and leaders

Only 44% of developers believe leaders are aware of the issues contributing to a poor developer experience.

Head of DevOps Evangelism

Misalignment between engineers and their leaders is possibly the leading cause of a sub-optimal developer experience and, consequently, poor productivity.

See for yourself here

Thankfully, we have moved on from a time when a positive developer experience meant buying a few ping-pong tables and ordering pizza on a Friday. Leaders understand that improving developer experience is about removing friction from the developer’s daily work and is a key input to productivity and retaining talent. But how closely do leadership attitudes match with what developers experience?

We partnered with DX , an engineering intelligence platform that leading companies use to measure and improve developer productivity, and Wakefield Research to survey over 2,100 developers and managers across a range of industries worldwide. This gave us a fresh look at what keeps work flowing smoothly vs. what introduces friction in software development teams.

Our research shows that 97% of developers are losing significant time to inefficiencies, and the majority think about leaving their jobs due to a poor developer experience. Engineers and leaders agree on the importance of a positive developer experience, but there is less alignment on what needs to be improved.

An example of the disconnect between engineers and their leaders is highlighted by the differing perspectives on AI. Leaders believe AI is the most effective way to improve productivity and developer satisfaction, while two out of three developers say they aren’t experiencing significant productivity gains from using AI tools yet. Despite the best intentions, disconnects like this create the potential for significant investment and effort to be spent on initiatives that don’t meaningfully improve the developer experience or productivity.

Here are some of our main takeaways from the research.

Developers are losing significant amounts of time to friction

Sixty-nine percent of developers are losing eight hours or more per week to inefficiencies . That’s 20% of their time . While this is shocking, perhaps more alarming is that less than half of them believe their leaders are aware of this issue. Similarly, less than half think their organization prioritizes developer experience.

How many working hours a week developers lose to inefficiencies:

They aren’t wrong—there is a misalignment between developers and leaders on the issue. Most developers attribute their time loss to tech debt or insufficient documentation, while leaders point to understaffing, the expansion of the developer role, and the amount of tech knowledge needed. Not only does this create frustration among developers, but it also means leaders are likely to fix the wrong issue. The consequences are a larger gap in the issue and potentially wasted resources.

Additionally, most leaders admit the metrics they track are inefficient at measuring developer productivity, and most appear to conflate productivity and experience. This is unfortunate, given that developer experience is important to 63% of developers when considering whether to stay in their current jobs. Two out of three consider leaving their roles when they aren’t satisfied with their developer experience.

Investing in developer experience is a virtuous cycle

While productivity and experience are intertwined, they are also highly contextual—there isn’t one metric or a set of metrics that rules them all. At Atlassian, we’ve invested heavily in developer experience with the goal of putting developers at the center of the process. As a result, developer satisfaction has risen 25 percentage points over the past two years (from 49% to 74%).

How important developer experience is to developers:

Focusing on developer joy can take your developer experience to the next level. Less time lost to obstacles and inefficiencies correlates with higher satisfaction with developer experience investment, meaning not only does productivity improve, but employee sentiment improves as well. The very first step for tracking, measuring, and improving developer experience is to speak with your developers . You can’t begin to help them unless you truly understand them.

What about AI?

Leaders believe AI is the most effective way to improve productivity and satisfaction, but currently, two out of three developers aren’t seeing significant productivity gains from using AI tools .

Top areas leaders believe will improve both developer productivity and satisfaction (multiple choice question):

How much AI tools are improving developer productivity today:

AI has the potential to enhance the engineering craft by addressing tech debt, reducing developer toil, helping plug documentation gaps, and reducing interruptions. However, to understand how AI can improve developer joy, leaders must go beyond code generation to understand the needs of each area separately and design effective solutions that match. It is critical that leaders ask developers about friction points and then implement tools that create consistent feedback loops, a manageable cognitive load, and the ability to get into a flow state.

Using the data to improve developer experience

It’s not all doom and gloom. This research allowed us to provide recommendations for leaders on measuring and improving productivity in a way that addresses developers’ concerns. And the best strategy to understand how to improve the developer experience is also the simplest.

Developers want to be productive; if you ask them what needs to be improved, they will definitely tell you. Trying to improve developer experience without asking developers what needs to be improved is the equivalent of searching the house for your phone while it’s in your hand. Alignment between engineers and their leaders on what needs to be improved is a critical step in prioritizing precious effort toward initiatives with the greatest impact.

With developers facing increased complexity and companies facing tighter budgets with more pressure to maximize productivity, improving developer experience is more important than ever. Improving alignment between developers and their leaders increases the likelihood of organizations meaningfully improving developer experience, productivity, and overall company success.

Progress toward improving developer experience is not linear—there will inevitability be events or incidents that impact sentiment. The important thing is that developers feel their challenges are understood and that they are enabled to do their best work. This is an ongoing process at Atlassian, too, but we will keep pressing forward and sharing what we learn through blogs, events, and reports like this.

Why developer experience is more important than productivity

Stories, trends & announcements for atlassian builders.