In recent years I’ve learned a lot about the importance culture plays in an overall business. Throughout a 20+ year career in business leadership, I’ve had the opportunity to experience firsthand varying cultures and observe those cultures’ impact on the business as a whole. As a result of those experiences, I now believe that culture is a top overall predictor of an organization’s future success.
Culture weaves in and out of all aspects of an organization in many ways, and in essence, it is the compass that influences nearly all business strategies and direction. This is true because people run businesses, and those people are interconnected, and through established beliefs, subsequent decisions are made that impact the business outcomes. We’ve all seen examples of both extremes in the new, those organizations that thrive because of the importance they place on people, and those examples of organizations that have other priorities and sometimes end up a mix of troubles.
In its simplest form, culture has the most obvious impact on the area of talent. Topics such as employee engagement and turnover all end up in either a hard cost or soft cost account where deposits and credits into these accounts are made with every employee decision or action.
Over time, these deposits and credits end up with a net positive or negative outcome that an organization either benefits from or needs to contend with if those outcomes are undesirable. A simple example is this; if a retail organization has low morale or a poor culture, customer service will be poor. Retail companies must spend more marketing and advertising dollars to compensate for a higher turnover of lost customers.
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Those leaders who create positive and engaging cultures are the leaders who often deliver world-class results and overall lead successful organizations. Building and fostering positive cultures is a big subject, but one piece of culture I’ve seen has the most significant influence: authentic recognition.
“Unless recognition is sincere and well-meaning, it should not be given. It’s more damaging to be fake or disingenuous than to withhold recognition altogether.”
3 Ways to Build Culture Through Authentic Recognition
“If you really care about your team, you will tell them the truth.”
Building a culture that values authentic recognition can start with you. It can start today. Putting these insights into practice will feel good to you and those you choose to recognize. These positive feelings are contagious and can spread quickly across the team.