Building a culture of success
Shared visions, values and a big idea can have enormous positive impact on business performance
25 November 2004 - Companies with strong shared cultures tend to perform better and
strong shared cultures come about when identifiable values exist
which are reflected in everyday activity at all levels. This is
the conclusion of new research from the Chartered Institute of
Personnel and Development (CIPD), the leading professional body
for those involved in the management and development of people.
The new report is the latest in the CIPD's ongoing programme of
research into the link between people and performance, which has
demonstrated that factors such as employee attitudes,
organisational culture and HR practices are more important as
predictors of business performace than more traditional
predictors such as research and development, technology and
quality. The research has demonstrated a clear link between
the way in which people are managed and developed and the
bottom-line.
The new report Vision and values: Organisational culture and
values as a source of competitive advantage found that many of
the companies studied focussed on a "Big Idea" or a few key words,
which simply expressed the purpose of the organisation, how it
works and what it is like to work there.
But the research shows clearly that a big idea on its own is not
enough. To be effective and drive improved performance it needs
to be:
- Embedded
- Integrated
- Enduring
- Habitual, collective and routine
- Measured and managed
In other words is must drive behaviour which is repeated,
collective, routine and therefore habitual.
The research also clearly shows a link between strong shared
values and high commitment. Where strongly shared values can
be demonstrated, people are more likely to be satisfied,
displaying higher levels of organisational commitment, lower
quit rates, greater customer satisfaction, and lower levels of
dissent or dissatisfaction over levels of pay. In one large
retailer studied, it was shown that people in different branches
receiving identical pay had widely divergent levels of satisfaction
and commitment, directly correlated to the extent to which they
demonstrated shared values.
Angela Baron, CIPD Organisation and Resourcing Adviser, said:
"To deliver effective performance, organisations need to work
hard to create and maintain a shared vision and values amongst
the people who work for them. Mission statements and strategic
decrees from on high are not enough. People need to feel a sense
of purpose which is reflected in a positive environment. If
organisations are going to get the discretionary behaviours
from individuals which are so important to business performance,
they must work to create supportive cultures which encourage
innovation and performance.
"New employees will adopt the culture and behaviours of the
existing team - and these cultures and behaviours become
self-perpetuating. A change at the top of a team cannot, in
itself, change the values of the team.
"Organisations need to adopt the people management practices
that create a virtuous circle - in which people want to build
success, enjoy working for successful organisations, and exhibit
the discretionary behaviours that continue to build that success."
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