Culture transformation is a "hot" topic in boardrooms these days. But, leaders are unclear about how to measure its return on investment. Clearly, measuring the results of culture improvements, per se, is a bit sticky. This is so because your company culture underpins everything you do. From outward facing activities like product development and service delivery to internally facing processes including measurement and reward and hiring practices are a reflection of your company culture.
So, how do we measure the return on a culture transformation investment? While there's no simple formula, here are some questions that can be asked to make the decision to invest in improving your company culture a whole lot easier:
1. What's The Value of Strategic Alignment? Getting your culture aligned with where you want to take your business is absolutely critical to achieving your vision for the future. After all, you won't realize the vision if your company culture can't support it.
2. What's The Value of Improved Teamwork? Getting your people to work as one is invaluable to the success of a business. Your culture must be set-up to do that. If it isn't your performance will undoubtedly suffer.
3. What's The Value of a High Trust Work Setting? All good things are based on trust. If your culture is built on trust, your business is well positioned to overcome all of the obstacles that will confront it in its journey to strategic accomplishment.
4. What's The Value of Improved Communication? Communication is the centerpiece of every business. Outward communication drives prospective customers to your door and supports them once they've made the choice to become one. Internal communication keeps your people informed so that they can perform at their best. Your culture better support solid communication, if it doesn't it may be time to invest in cultural transformation.
5. What's The Value of Improved Customer Intimacy? It's tough to stay in business without satisfied customers! Your culture should be built around understanding their needs and wants, and then, delivering impeccable service so that you become the provider of choice.
6. What's The Value of High Resiliency? Running a successful business is a tough and tumble undertaking. Your company culture will determine its ability to withstand and overcome adversity.
7. What's The Value of Being a Talent Magnet? You want exceptional people? Build a company culture that makes you the employer of choice. Great cultures attract great talent. Be sure your culture is outstanding.
8. What's The Value of Greater Innovation? Your products and services best be amazing, if you intend to continue to grow your business. Here's where innovation comes in. By creating a culture that continuously innovates you improve your ability to be amazing.
To close, company culture is the foundation of every business. If you optimize the culture and ensure its alignment with the achievement of your strategic objectives, your business performance will improve. Place a value on that and compare it to the cost of cultural transformation and you'll have you ROI. It's really that simple!
For more on culture transformation, please reach out to me directly. I look forward to our collaboration.