Have you wondered about the impact your culture has on your bottom line? It’s something we think about all the time.
And it’s something you should think about too – because culture is everything.
No matter the size of your business, the quality of your culture can make the difference to you achieving your organisational goals – or falling short.
A recent KPMG report even said: ‘Strong financial performance comes from paying attention to your non-financial performance.’
AKA the strength of your culture.
Now, how often do you actually measure your culture? It’s a fundamental piece of the work we do with most of our clients. We use in-depth diagnostic tools that assess culture across the 3 levels of individual, team and organisational.
And do you know what we saw doing this work across 2022? A real dip in organisations focusing and leveraging their culture and a hesitation to spend money on people development.
We get it and understand the reasons why:
- A tight labour market that resulted in companies snapping up OK people versus holding out for the right culture-aligned people.
- A focus on hiring new talent rather than investing in developing and retaining current employees.
- Companies struggling to balance rapid growth, while still maintaining that small company feeling.
Given the trying period we are still emerging from, it’s completely understandable that organisations have focused on growth and driving results.
But focusing on just that is a false economy.
Because it’s your people, culture and leaders that drive that growth.
Now, let’s talk about your leaders.
We’re sure you’d agree that people in leadership positions over the past 24 months have had to adapt to incredible amounts of change. We’ve seen a huge upswing in what the KPMG report calls transformational leadership.
In comparison to traditional autocratic leadership styles that are more directive and one-dimensional, transformational leadership is agile, responsive and adaptive to changing circumstances.
What we see time and time again is that the leaders who succeed most are those who adapt best to change. Not only in being agile with the different hats they’re wearing but adapting to the different needs of the people they lead.
We see a refocus on leadership and culture development heading our way in 2023.
And here’s why:
Although it can take more time to find them, the right person for the job in fact saves time and money for an organisation as they get up to speed and have a bigger impact sooner.
Investing in people development is the easiest way to retain employees and is far more cost-effective than recruiting and training new people.
Developing and maintaining professional intimacy is a non-negotiable skill for high-performing leaders – especially those in rapidly growing organisations.
If we’ve learnt anything from 2022, it’s that driving growth alone isn’t enough. Without an equal focus on driving results AND driving culture, companies risk eroding the very foundations that support and sustain long-term business success.
Our prediction for 2023? The companies that double-down on their culture next year will come out ahead of the rest in growth, retention and employee satisfaction.
If you need support to develop your leaders and your culture in 2023, get in touch. We can assess your culture, diagnose what you need, and provide leadership and culture development solutions to suit your business. Email us at firstname.lastname@example.org or call us on 1300 110 165.
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