Why Invest in Business Culture Transformation?
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Why Invest in Business Culture?
Developed by Nowsourcing
The Art & Science Of Business Culture
72% of executives say culture is key to performance
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Only 32% believed their company culture is aligned with its business strategies
Why Invest In Business Culture?
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Culture Is Key To Success
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According to a decade-long study by John Kotter, firms that had a strong focus on corporate culture
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Revenue: +685%
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Stock price: +901%
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Net income: +756%
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Job growth: +282%
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Focusing on cultural transformation can bring big rewards
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After 5 years, 85% net profit increase
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In just 3 years
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25% workforce growth
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50-point increase in employee engagement
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Increased engagement brings its own rewards
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10% higher customer ratings
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17% higher productivity
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20% higher sales
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21% higher profitability
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In 2020, 85% of employees are not engaged — Creating $7 trillion in lost productivity.
Employees Care About Culture
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Meaning & Motivation
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1 in 3 employees say the primary reason they stay at their current job is that they find the work meaningful
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Millennials & Gen Z expect their work to help meet societal needs
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When work is tied to our values
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Increases employee engagement
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Sparks inspiration and innovation
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Raises motivation and productivity
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Meaningful work is the difference between an employee who actively erodes your culture and those who actively work to better the organization
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A poor corporate culture can make employees unwilling to buy-in to transformation efforts.
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Why Do Employees Resist Culture Change?
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Lack Of Trust: Past efforts to change have failed or had unintended consequences, compromising employee trust
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Over-Burdened: Change often brings new responsibilities, employees worry they’ll face more work with no reward
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Rules & Roadblocks: Employees are unlikely to embrace changes to rules and procedures — especially if reprimanded in the past
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Skills Gaps: New technology can expose employees who lack the necessary skills, prompting fear of job loss
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Fear Of Job Loss: History of failed projects resulting in restructuring and job losses may make employees feel at risk
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57% of private equity dealmakers say cultural issues hinder value creation.
Level Up Your Culture & Create Value
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What Is Company Culture?
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All of an organization’s attitudes, ideals, and attributes
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Seen in the actions and behaviors of every employee
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Unique to every organization and the people who work there
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Culture transformation means
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Aligning employee desires and business strategy
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Instilling a compelling vision for the future
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Rallying support through active communication
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While a positive outcome is expected from all digital transformation efforts, barely 1 in 8 are successful.
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Culture Transformation Investments That Matter
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Strategic Imperative: Define a single strategic imperative to focus your efforts — When you have fifty strategies, you have none
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Future Vision: Establish a compelling vision — What does your future look like and how does it position you to dominate your market
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Skills Training: Equip your workforce will the skills needed to meet your vision — Enable high-performance and career advancement
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Job Alignment: Facilitate organizational and job function alignment so that employees can exercise their passion every day
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Reward Success: Ensure reward systems align with your vision throughout the organization — Share successes regularly
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Does Your Organization Need To Invest In Culture Change?
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Consider these questions
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Does the company’s culture unleash employees’ passion?
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How is the organization dealing with barriers to change?
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Are employees self-managed and accountable for results?
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Do rewards align with vision fulfillment across the organization?
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Is there a leadership program that cultivates the right values?
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Do communication systems foster effective collaboration?
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Sources:
To invest in business and cultural transformation with Ascension Transformation Solutions
https://www.kornferry.com/insights/articles/power-culture-transformation
https://ceocoachinginternational.com/why-high-growth-companies-invest-in-culture/
https://chiefexecutive.net/the-value-of-meaningful-work/
https://elearningindustry.com/organizational-culture-transformation-approaches-right-org-types
https://www.pwc.com/gx/en/services/deals/deals-report/private-equity.html
https://www.thebalancecareers.com/what-is-company-culture-2062000
https://www.grantthornton.com/library/articles/advisory/2019/return-on-culture/looking-ROI-in-all-right-places.aspx