With nearly two decades in human capital management solutions and executive search, we’ve learned culture matters. The outward image of an organization can either support efforts to attract and retain talent, or make an already difficult endeavor more challenging. Are your employees loyal to your organization, do they feel valued for the work they produce, can they stand behind the products and services represented, are they respected for their contributions?
A recent story in Forbes shares a new study demonstrating the importance of culture’s impact on company performance and value, and leadership’s role in shaping corporate culture.
According to the study, “almost all respondents agreed that corporate culture, however it is defined, makes a difference in companies’ performance and value. Among the findings:
- More than 90% said that culture was important at their firms.
- 92% said they believed improving their firm’s corporate culture would improve the value of the company.
- More than 50% said corporate culture influences productivity, creativity, profitability, firm value and growth rates.
- Only 15% said their firm’s corporate culture was where it needed to be.
Who is responsible for shifting a firm’s corporate culture? Seventy percent of respondents agreed with the statement, “Leadership needs to spend more time to develop the culture.”
“The paper’s bottom line finding reinforces something that we all know: Corporate culture is an essential element of success. The researchers hope that their survey will open more discussion about how to get culture right. That dialogue should start at the top. “CEOs and CFOs are very clear that getting culture right enhances value,” says Duke’s Campbell Harvey, one of the co-authors. “But it is a puzzle that if culture is so important to value, why do we hear very few CEOs talking about it?” Let’s hope this study opens a new discussion.”
Based on thousands of conversations over the years, we’ve developed an intimate knowledge of how companies are viewed both internally and externally. With only 15% of the study’s respondents stating their culture is where it needs to be, it’s important to take heed regarding the impact this can have not only on company performance but on the ability to attract and retain talent in an ever competitive marketplace.
Source: Corporate Culture Matters A Lot, Says New Study