Most leaders recognize that organizational culture has a significant impact on success. Delivering on strategic objectives requires that the way things get done in an organization is aligned with the values and common purpose of the organization. 

However, knowing that and building desired cultures that work are two different things. Culture will develop whether leaders shape it with intention or not, and negativity is the norm in too many cases. Many company leaders are unsure about how to build a positive culture from the start or shift one that isn’t working well. Culture may seem nebulous or so intangible that it’s hard to know where to begin.

Fortunately, there are some very practical strategies that leaders and managers can deploy to define cultures in which every employee is positioned to do their best work.

Put Into Operation an Effective Performance Management Structure

Unfortunately, many organizations are stuck in the mindset of old, rigid, control-based management models. Micro-management leads to employee disengagement and a lack of innovation. A more effective approach is to focus on outcomes and performance. The management process should:

• Differentiate between high and low performance based on merit.
• Clearly communicate the expectations and standards at the individual, team, department, and organizational levels. 
• Include a transparent reward system.
• Align around shared goals and objectives.

This type of management structure supports equity and inclusivity. It also has a direct impact on every other element of organizational culture. 

Focus on Employee Empowerment and Distributed Authority

With an effective management structure in place, you can begin to create employee empowerment and distribute authority so that everyone is engaged in the right level of decision-making, particularly related to the processes they operate. Research has found that in organizations with a strong sense of trust and accountability, employees more often:

• Recognize and react to changing conditions or new information.
• Develop creative ideas to satisfy the market and outperform the competition.
• Create a branded experience for customers.
• Solve problems at the root cause level.
• Recruit new team members and customers.

A decentralized decision-making process allows for more ideas and perspectives to come into the mix. It also increases individual emotional investment in outcomes and long-term success.

Develop Leadership Capabilities at All Levels of the Organization

Employee engagement arises from a sense of shared purpose and mission. It happens when the values and actions of leaders from the board room to the front lines are aligned. Successful leaders in a high-performance organization have a set of common traits. They:

• Communicate frequently to connect today’s work with where the organization hopes to be in the long term.
• Inspire employees with individual attention and coaching.
• Share a unified message about how employees can live their values and work toward its mission.
• Involve as many people as possible in developing the strategy and annual goals and objectives.
• Recognize high-potential employees and future leaders.
• Craft and adhere to leader standard work.

Craft a Customer Value-Oriented Strategy

Operationally excellent organizations can easily connect their brand, employees, mission, and values with their customers and the community they serve. Companies that can pull this off stand apart in a crowded, competitive landscape. The key to achieving this state is helping employees understand their responsibilities in delivering customer value and meeting expectations. For front-line employees, this is usually straightforward, but those who don’t interact with customers regularly are still part of the value chain and must be coached to focus on customer needs.

In a customer value-oriented organization:

• Processes are examined to ensure that each step is necessary to provide value to the customer.
• Root cause problem solving eliminates defects and mistakes.
• The customer defines success.
• Expertise is more important than rank.
  
  

Improve Communication and Collaboration

Many organizations develop a work environment with silos of information based on functional areas, departments, or locations. Successful leaders can break down barriers to information exchange and collaboration. Software tools can help, but most importantly, leaders must prioritize the free flow of information and ideas. You can help your organization build transparency and trust by:

• Ensuring leaders and managers at every level understand the role they play in communicating with internal and external audiences.
• Conducting frequent and open one-on-one conversations to share and individualize important messages and following up to ensure that the information was absorbed and retained.
• Solving problems collaboratively with cross-functional teams.
• Considering the different communication styles and preferences of team members.
  
  

Amplify Training and Employee Development

Continuous improvement and growth depend on setting employees up for personal success and development. High-performance organizations recognize that talent is their most important asset, and they invest in helping employees reach their full potential. The most successful organizations:

• Have a structured approach to employee onboarding that emphasizes the organization’s purpose, mission, and values.
• See employee development as a corporate priority, not something that is just left up to individual managers.
• Provide a career pathway that allows for internal mobility.
• Encourage mentoring and a coaching-based approach to daily management. 
  
  

Overcome Resistance to Change

Many employees are resistant to change for good reasons. Some have seen new procedures implemented, only to quickly revert to the old ways of doing things. Others have tried to suggest improvements but received a negative reaction from their managers. The “that’s the way we’ve always done it around here” mindset is hard to overcome, but it is possible. Leaders that want to shape a culture that thrives on positive change:

• Invite employees to suggest opportunities for improvement and act on many of those suggestions. 
• Focus on problems with processes rather than blaming people.
• Allow employees to take managed risks and “fail forward.” 
• Recognize and reward people who engage in improvement.
• Calculate the impact of better processes.
• Hire people who are inclined to be comfortable in a constantly changing environment.

Culture is the key to long-term success. These are just some of the things you can do to begin to create the ideal way of working for your organization.