The Importance of Organizational Culture

Organizational culture is the DNA of your company; it provides the backbone for your company’s guidelines, boundaries, goals, mission, and vision. Your company culture impacts your employees’ performance and influences how others perceive your company. Also, organizational culture is directly proportional to the success and overall health of your company and customers. Let’s dive deeper into some reasons why organizational culture is important for every company.

Defines Company Identity

Take some time and write down attributes that align with your company’s culture. Then, analyze those attributes and ask yourself why they’re important to your organization. Whether they are positive or negative, they will help identify your company’s identity and will allow you to make necessary changes where needed.

Your company culture defines every aspect of your company, from how your organization does business and how it interacts with customers and other companies. Essentially, your organizational culture is your company’s image, and it will determine how customers perceive you. 

Reflects Your Company’s Core Values

Organizational culture is a direct reflection of your company’s core values. The way you interact as a team, treat your customers, and conduct business should reflect your core values. In short, your organizational culture is the manifestation of your core values at work. Therefore, if your core values don’t match your culture, then your values are meaningless to your company.

Impacts Performance and Wellbeing 

Organizational culture has a direct impact on employee performance and employee wellbeing. When your employees know what the company values are, and work actively towards cultivating them, it produces an environment conducive to success. Also, the work environment should support an open culture that gives each employee a voice. 

Benefits of a healthy culture

  • Transparent and open communication 
  • Shared vision and clear mission with everyone working towards common goals; therefore, fewer disagreements
  • Enhanced trust and cooperation across the business
  • Reduced employee turnover rate with financial and operational advantages
  • Identification across the organization 

Conclusion

A healthy and strong organizational culture is what allows your company to be successful and thrive. Not only does it establish a shared vision and mission amongst your employees, but it also improves trust, cooperation, and helps define the company identity. As a result, the overall health of your company will be benefiting from it, and customers and stakeholders will be able to see that as well.

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