Organizational Culture and Your Bottom Line

“Culture, more than rule books, determines how an organization behaves.”-Warren Buffett

I am a firm believer in… show me a business with heart and soul and I will show you a successful, profitable business with happy engaged customers and employees.

It is hard to define the concept of heart and soul for many business executives. Where bottom lines and business systems take up the bulk of their mental bandwidth, it is not surprising that heart and soul, the third element of my successful business triad (efficiencies, systems and heart and soul), is often overlooked or missing from consideration.

Instead of calling it heart and soul, perhaps a better and more understandable concept is “culture”. The concept of corporate/organizational culture is often overlooked because it is harder to quantify its importance as a necessary part of a business’ bottom line.

While business operations and practices have more “black and white” measurement methodology, measuring culture is less finite. I say less finite because the measurement principles are different than other business practice measurements.

If production is off, energies are low, communication is amiss and turnover is rising I will guaranty that you most likely have a cultural deficiency.

Just like a person, when you have a deficiency you need to pay attention before you end up completely worse. Culture can be fixed too, but you have to look at the root cause of the deficiency and apply some healing!

Here are 5 questions to ask yourself to determine if your organizational culture may need attention.

Have you had a growth period or reduction in your business bottom line in the past year?

Have you added significant new products or systems in the past year?

3. Have key people been added or lost recently resulting in a change of management/structure/operations?

4. Have you changed your brand/marketing focus?

5. Do you have a written organizational cultural playbook for your business?

If you answered “yes” to any of the first four questions and “no” to the last question, your organizational culture issues may be affecting your business bottom line.

I would love to help you explore and define your cultural bottom line to build a happy, healthy business. Give me a call today!

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