A guide: understanding and improving your organizational culture along with three examples of highly successful organizational cultures to take inspiration from
Have you wondered what an organizational culture actually means? Apart from the vague descriptions you might have read online about how employees interact, organizational culture is a concept that includes a lot more than just how employees interact and operate.
Speaking in terms of a firm, the organizational culture would comprise the firm’s basic personality, or the essence of how its employees communicate and carry out various processes required to achieve collective goals. It is, nevertheless, an enigmatically complicated entity that keeps surviving and evolving as a result of shifts in leadership, strategy, and several other factors.
It can also be defined as the self-sustaining pattern of behaviour that determines how things are done in an organization.
Culture is something that is difficult to define, yet everyone recognises it when they experience it. Similar to how you can get a sense of someone's personality by looking at them, you can determine the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, and so on.
Members of an organisation tend to pick up on the culture of that organisation sooner than one can ever imagine.
Developing a winning corporate culture within your organization boosts recruitment efforts and increases retention rates. The types of candidates you attract and the personnel you keep have a direct impact on your company culture.
And so, a positive corporate culture is just what you would need to attract the best job prospects and keep them on board as employees. It takes a lot of time and effort to build a winning company culture that reflects your beliefs and matches with your entire objective. It's a difficult, however not impossible task, and here’s why having a good organizational culture is so important:
Employee engagement is defined as an employee's level of interest in, motivation for, and connection to their work and company. And so, it's no surprise that high levels of employee engagement are associated with winning business cultures.
Strong corporate cultures provide employees with a reason to stick around and to do so with zeal. Employees with a winning culture establish strong bonds with their peers, company, and position, improving their work experience and increasing their engagement.
Your company's values and beliefs, as well as the underlying assumptions held by employees in your organization, form the foundation of your culture.
In a nutshell, your company's basic principles are brought to life through your organisational culture.
Your organization’s culture has a bigger impact than you know, on employee satisfaction and engagement. If your corporate culture values teamwork but a person prefers to work alone, they are unlikely to be satisfied at your organisation.
While you won't be able to please everyone, you may attempt to create a company culture that balances your employees' individual requirements while also aligning with your organization's objectives. Thus, your staff will show their appreciation by increasing their productivity and performance.
Studies show that organizations that provide a favourable candidate experience enhance the quality of their hiring by 70%. You can't hide your company culture from job seekers; they'll be able to get a sense of it almost instantly and use it to make a decision. Thus it is important to prioritize developing a corporate culture that promotes a strong and compelling brand image to prevent losing top prospects' attention.
In most cases, leaders do have a strong awareness of their organization's culture. However, they simply haven't made that sense conscious enough to be able to learn from and lead within the culture effectively.
Diverse people within the same organisation may have different perspectives about the company's culture. This is especially true when it comes to the perspectives of the organization's top and bottom levels.
Here are four elements to understanding your company's culture, as well as the criteria for determining whether it needs to change.
Every firm, whether consciously or unintentionally created, has a culture. This culture comprises the set of values, goals, ethics, and expectations that guide and affect employee conduct.
If you want to create a certain type of culture, it's not enough to just say so. To build a roadmap to achieve those changes, you must first figure out what present habits need to change. It is thus critical to first establish your current corporate culture before attempting to change it.
It is crucial to analyze your company's priorities if you want to learn more about your culture. These objectives and initiatives show what your company values and what it does not ,both explicitly and implicitly.
The behaviours that are encouraged, tolerated, and discouraged in your workplace make up your company culture. It's best to go straight to the source, i.e., your employees. This will help you figure out what kind of people make up your organization. Consider ways in which you can gather input on which behaviours are now beneficial to the company and which should be avoided or altered in order to elevate your firm.
SUPER TIP - If you're interested in engaging with your team to understand your knowledge of your organisation's culture, here's something to help you start with.
Every organization is different, and all of them have a unique culture to organize groups of people. Adopting a culture that matches your people and your goals- is the only right way out to understanding and developing an organizational culture.
Now when it comes to types, there are over five to eight types of organizational culture, out of which only a few are amongst the popular ones. They are as follows:
A clan culture is people-focused in the sense that the company feels like one big happy family. This culture follows the motto of being together throughout everything. Clan culture comprises a highly collaborative work environment that is super flexible where every individual is valued and communication is a top priority.
Market culture mainly believes in competition and growth, where losing isn't considered as an option. These are organisations that are more concerned with external success, i.e., profitability than with internal contentment.
Everything is measured against the bottom line; each position has a goal that is aligned with the company's overall goal, and employees and leadership roles are frequently separated by several degrees.
Companies with hierarchical cultures stick to the traditional business structure and value quality over quantity. These are businesses that place a strong emphasis on internal organisation, with a clear chain of command and various management tiers that separate employees from executives. Employees are typically required to obey a dress code in addition to a rigid structure. Hierarchy cultures have a set of rules to follow, making them predictable and risk-averse.
Adhocracy cultures are rooted in innovation and risk taking and go by the motto- risk it to get the biscuit. These are the businesses that are at the forefront of their fields, looking to produce the next great thing before anybody else has even begun to ask the appropriate questions. They must take risks in order to do so. Individuality is valued in adhocracy cultures because employees are encouraged to think creatively and contribute their ideas.
A good company culture not only consists of one or a combination of the above mentioned types, but should also be something that stands out from one’s competition.
It is not something that can be achieved within a snap of a finger, but takes a considerable amount of time, understanding and planning to emerge as an organization with a great culture where employees are productive, happy and satisfied.
Here are a few examples of organizations with commendable culture to help you take inspiration from:
Google is known for being an excellent employer that has pioneered many of the perks and advantages that startups are now known for. Google's employees are a hardworking, talented, and an enthusiastic bunch.
For its employees, Google's corporate culture is a treasure trove of perks and bonuses. Free meals, employee vacations and parties, cash bonuses, open speeches by high-level executives, employee recognition, gyms, and a pet-friendly atmosphere are all available at Google. It's no surprise that Google's company culture is the gold standard by which all other IT firms are judged.
The video conferencing technology company -Zoom is known for its amazing culture, and with good reason: their emphasis on people. The business has a reputation for genuinely caring about its employees. Zoom even encourages employees to bring loved ones to work so that teammates and coworkers can meet the individuals who work behind the scenes, who inspire them, and for whom they work.
Netflix's corporate culture is based on the principle of "people over process." They have a set of ideals in which they strongly believe and which they want their employees to live out in their job.
The foundation of the organisation is a strong sense of loyalty and ownership. Their goal is to pervade the workforce with their values and philosophies in order to motivate and urge people to support innovation in order to achieve higher growth.
Zappos' culture is now well-established and well-known. They concentrate on hiring to keep things going. The goal of the hiring process is to discover people who share the company's values. Zappos devotes a significant amount of time and resources to employee team building and culture promotion. They want every employee to embody the company's principles.Customers can even tell that Zappos staff are happy.
DHL is unique in how it benefits from its dynamic, multicultural environment. With a variety of programmes, such as the unique integrated learning platform that fosters talent development, the organisation looks after its employees throughout their careers.
Another pillar is workplace wellness, which includes annual events and long-term activities to protect employee health.
LinkedIn was even on Glassdoor's 2020 Best Places to Work list, but two characteristics aren't mentioned enough: devotion to people and a focus on five principles: transformation, integrity, collaboration, humour, and results.
Hubspot has appeared on numerous best-of lists. It does not end here. The marketing, sales, and service software firm is ranked first on this list of the finest places to work. The explanation for this is simple: Hubspot's company culture revolves upon its people.
Warby Parker has been creating and selling prescription glasses online for over a decade now. Warby Parker's company culture inspires "culture crushes," run by a team dedicated to culture, making it one amongst the several reasons for the company's success. Warby Parker provides its employees with a positive work environment by organising enjoyable meals, events, and programmes, always ensuring that there is an impending event to look forward to.
How does a corporation maintain such a high level of creativity and excellence at the same time? Well. we would never really know. At Pixar, everything is a work of art and employees are encouraged to be their true “creative” self. The essential ideals of the animation studio inspire the entire culture.
Pixar believes that if you want to be creative, you must be innovative in everything you do. This can even be seen throughout Pixar, especially in the design of the company's "cubicles," which are sometimes shaped like cute little huts.
Twitter employees can't get enough of the company's culture! Rooftop meetings, amicable coworkers, and a team-oriented workplace where everyone is motivated by the company's goals have prompted this acclaim.
It's impossible to beat having team members that are pleasant and friendly to one another, as well as excellent at and enthusiastic about what they do. There is no programme, activity, or set of regulations that can compare to having happy and pleased employees who believe their work counts.
You would notice that most of the organizations read about a while ago, have similar perks and bonuses, but keep in mind that these do not entirely determine your organization’s culture. The way employees are treated, as well as the level of ownership and trust they are given, is the key aspect of any and every company culture.
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It is no longer an assumption that the traditional approach to annual goal setting and review has run its course. The VUCA world demands more quick and adaptable business models.
While the agile values and methodology was initially created for software delivery, you can apply the same to transform how you set and achieve your business goals.
In this article, we will focus on:
Traditionally, goal setting has been a very static and long-term process for organizations. Here are a few key components of traditional goal setting and performance management:
This form of goal setting and performance management had relevance for organizations operating in steady and stable market conditions.
However, in today’s VUCA world, the pace of change is skyrocketing and organizations unable to tide with the same are finding it extremely difficult to survive, let alone thrive.
Some of the reasons to reimagine goal setting for VUCA world include:
While it may not be apparent in the first look, agile and OKRs are quite complementary and combining the two can be a great step for growing organizations. Here’s why —
Here are a few reasons why you should combine agile and OKRs for your organization:
Now that it is clear why working agile and OKRs together makes sense for growing organizations, let’s quickly explore the top ways in which you can apply agile techniques to your OKR framework to make goal setting and performance management suitable for the VUCA world.
In this last section of agile and OKR for better goal setting and performance management, we will uncover the top framework.
We have combined the best components of different frameworks like waterfall goals, delivery agile, scaling, full stack agile, into a single framework with 5 major components that can help you enhance the complementary potential of agile and OKR
This approach can help you leverage the benefits of agile methodologies and OKR framework to impact all aspects of organizational structure for achievement of goals, including the culture, strategy, initiatives, tactics, etc. The framework is premised on:
If you are struggling with combining agile and OKRs for your organizations, chances are you are focusing on activity based key results which often resemble agile steps, leading to confusion and inability to meet goals.
For instance, if you have an event coming up and wish to successfully execute the same, the objective will be common, with specific value based key results for each team.
If you look closely, while the objective is shared, key results are spread across sales, marketing, and even product/ services teams
Your agile and OKR framework should enable you to get the best of both worlds when it comes to results. Agile results by nature are qualitative in nature and focus on the features that you wish to ascertain in a specific period of time. On the other hand, OKRs are driven by metrics. Thus, you can use a combination of the two for effective results:
The combination can help you create an ideal balance between outputs and outcomes which are both critical when it comes to goal achievement and performance management.
Using data and not relying solely on opinions will help you set agile OKRs which don’t under or over estimate the goals. For instance, if the market data on traffic to a new website in your industry is 20,000 clicks in one week, your OKR can focus on reaching 25,000 to make it aspirational but achievable up to 80%.
However, if you set the target at 50,000 or above, it will become too far fetched and the team might not even strive for it. On the flip side, if the target is only at 10,000, it will not encourage your employees to push the boundaries. Thus, you need to replace opinions and command OKRs with data backed experimentation.
Self organizing teams are important for growing organizations as they proactively take onus and ownership of achieving OKRs and lead to a greater degree of success. Step away from controlling detailed plans for each OKR and encourage the leadership to provide direction.
To conclude, if you combine agile and OKR, you have for yourself a clear model for success which you can easily apply to goal setting and performance management. Furthermore, leveraging the right technology resources can help you stay on track and enable you to thrive in the VUCA world.
Like most fast growing organizations, you might also be leveraging the OKR methodology to set, implement and facilitate effective goal setting to maximize growth. If not, you should start using OKRs ASAP.
OKRs not only provide an excellent goal setting framework but also drive high performance when implemented strategically. Most importantly, with enhanced goal visibility and transparency, OKRs ensure that everyone is on the same page which is the foundation of a cohesive and high performing culture.
In this article, we will discuss 8 ways in which you can adopt the OKR methodology to build a thriving company culture.
A high performance and thriving company culture is based on the foundation of clarity and focus. When there are 100 things to focus on, your employees will eventually lose sight of what’s actually important and might feel burdened with non-priority tasks. This will lead to a poor employee experience and limited productivity, both situations that prevent an impactful culture.
However, when you apply the OKR methodology, you will be able to limit your focus on 3-5 top priorities which will attract attention, energy and efforts across the organization. You will then be able to create a high performance culture by dedicating all your resources to the key priorities to realize impact.
A culture that thrives on collaboration, teamwork and alignment is one which creates maximum impact. The OKR methodology can help achieve this in an effective manner. On one hand, everyone is clear about their role in the OKR achievement, which makes collaboration seamless because everyone is on the same page and no one steps on the shoes of others.
On the other hand, OKRs can help your employees align their responsibilities and tasks with the overall vision of the organization, motivating them to contribute to the big picture.
To learn more about how to align teams using OKRs, read this
Recent times have shown that uncertainty and ambiguity will continue to mark the new normal. Thus, a culture of agility, resilience and responsiveness is critical for fast growing organizations. The OKR methodology can help achieve the same.
OKRs are cognizant of the changing environment and have the flexibility to be adapted to the same.
More importantly, you can leverage the OKR methodology to foster a culture that focuses on outcomes and is not fixated on the tasks to achieve the outcome at hand.
One of the top challenges of building a great company culture is a siloed approach and annual reflection. This leads to surfacing of major risks and problems which result in high rates of attrition, absenteeism and lower levels of motivation, productivity, etc.
However, the OKR methodology adopts an approach of continuous engagement and reflection. You can create a regular cadence to check OKR progress for each of your team members, even daily is effective.
This continuous engagement and reflection can enable you to preempt risks before they surface and leverage the power of communication to address them in real-time. Invariably, a culture built on continuous engagement leads to greater impact and high levels of performance as well as employee satisfaction.
The lack of transparency is one of the key obstacles for many fast growing organizations that seek to create a thriving company culture. A way out often seems difficult to navigate. Fortunately, the OKR methodology can help address this challenge as well. When you use OKR, especially with the support of an effective OKR tool, you can facilitate high levels of transparency.
Everyone in the organization will not only know their role, but also will have a complete view of the level of performance for others. Such transparency can help you increase coordination of efforts and give everyone the visibility of what’s happening across the company.
You may agree that most fast growing organizations these days seek to replace a strict hierarchy with a more flat organizational structure that facilitates inclusion of diverse ideas, thoughts and opinions. However, many struggle when it comes to actually implementing this thought.
Adopting OKRs can solve this problem.
By nature, the OKR methodology is based on a collaborative foundation where a top-down approach compliments a bottom-down approach for goal setting.
This suggests that while the skeletal structure of the goals might be laid down by those in the top leadership, you can give all employees the freedom and autonomy to create OKRs for their teams and verticals.
When your employees participate in setting the OKRs they have to execute, the level of ownership is much higher. Thus, you can leverage the OKR methodology to create a thriving culture built on greater ownership and a flat organizational structure.
With a focus on continuous engagement and reflection, the OKR methodology can help you facilitate open communication and feedback. Many studies have shown that a culture that facilitates regular feedback along with open channels of communication is more likely to thrive than one which does not.
In the OKR methodology, when you constantly track your OKR progress (download our free template for tracking OKRs), you will be armed with data backed insights to offer regular feedback for your employees. Furthermore, you can also leverage the same to start meaningful conversations with your team members in case you feel that there is any kind of disconnect. Such open communication can help you create a truly inclusive culture when employees feel their voice is heard.
Finally, a company culture that thrives has two major components supporting it, accountability and recognition.
The OKR methodology is an answer to both these challenges.
Now that you know how the OKR methodology can help you in many ways to create a thriving culture, it is also true that as a fast growing organization with multi-pronged focus, leveraging OKRs is a challenging task. To address the same, you can collaborate with an integrated OKR tool like SuperBeings to automate the OKR adoption and maintenance.
With SuperBeings, you get to —
With performance management becoming a critical part of organizational success, giving effective employee reviews is becoming a crucial part of a manager’s responsibilities. While regular employee performance reviews focus on illustrating the strengths and what worked for employees and the organization at large, there needs to be an equal focus on areas of development in case of poor work performance.
If you look closely, writing negative employee reviews is often considered to be more difficult because the words need to be chosen very carefully. It needs to have a developmental tone rather than a critical one.
As the term suggests, negative employee reviews are reviews delivered to employees who have underperformed and need to be pulled up to the expected levels. It involves a variety of components which include:
To get actionable ideas of how to deal with poor performance issues at work, read this
Writing and delivering negative employee reviews is very important for any organization that seeks to maintain a high level of employee performance. It is critical to ensure that:
When you are writing negative employee performance reviews, you need to be extremely cautious of the words you choose. Using the right words will help the receiver acknowledge and work on the suggested points, while using words that are too harsh or critical can lead to adverse consequences. There are a few reasons which make the choice of words extremely important.
The same review when offered with the right words can be more powerful and have a larger influence.
For instance a statement like ‘you interfere too much in the work of others’ can be seen as a personal attack and may yield a defensive response from the receiver.
However if you frame it in a different manner like ‘if you give others greater autonomy and freedom to work in their own way, you will be able to inspire greater creativity and innovation’, you will be able to put your message across and also help your employees understand how it will make a difference.
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In addition to being cautious of the words you use, there are a few other tips which you must keep in mind while writing negative performance reviews, including:
While giving negative reviews is difficult, don’t beat around the bush and get straight to the point. However, instead of directly saying what isn’t going well, try adopting the sandwich approach. Start with a positive comment, add areas of improvement and end it with some suggestions and action items.
Example: Tina has an excellent eye for detail and is very dedicated to her work. However, she often misses the deadlines which has led to a delay in 30% of her projects resulting in poor client experience. It would help her performance greatly, if she is able to prioritize her work better and keep an organized calendar for timely delivery. She can consider using the latest project management tools to facilitate better prioritization.
Second, negative employee reviews should focus on the job or the role and not the person specifically. Steer away from using words or phrases which may end up combining performance and personality of the person. Your review should be specific towards performance challenges and not generalize that performance challenge is a personality trait.
Example: Instead of saying, “you are not punctual”, you can say that “I have seen you arrive late for meetings frequently, leaving shorter time for discussions. It would be best if you could be more punctual to respect others' time and make the most effective use of the same.”
When you are writing negative performance reviews, you must focus on the progress and how a change in behavior and attitude can help them in the long run. Simply mentioning what went wrong and the associated process might lead to demotivation.
Example: Some of your work has had grammatical errors in the past, maybe because you were trying to complete a lot at once. I am sure if you prioritize some tasks and create an action plan, your work quality will be better.
Don’t simply give negative employee reviews about the problem area, but back it up with facts and data points. This will help you illustrate a pattern and establish that your review is not based on a single incident. Also, it will make your review more credible and authentic and not just a few words strung together. This will also help you in being very specific.
Example: It has been observed that 40% of your customers claim that you don’t have adequate knowledge of your product, leading to a poor experience.
There might be some performance parameters which are difficult to add quantitative data points to. In such cases, you can offer specific examples of underperformance, especially if it has been repetitive. It is ideal to have at least 2-3 instances of poor performance to make your point stronger.
Example: It has been noticed that in the aspiration to get your work perfect, you end up delaying projects. It was observed in project X with client A, project Y with client B as well as when the internal submission for Z was due.
Pro-tip: Use our free Performance Review Phrases template to get 50+ examples of writing a negative review positively
Once you write the negative employee reviews, you exactly know what you want to say to your employees. However, the way you deliver it also has a big impact on how it is received. To make the process simple, we have compiled a list of some of the best practices to help you deliver a poor performance review in the best way possible:
If you are delivering a negative performance review, it is best to do it in person, or if your team is remote, over a video call. If you deliver it over an email, you cannot be sure of the tone and context in which your words will be read.
It might backfire by being read as more critical than developmental as per the intent. Furthermore, when you are delivering the negative reviews face to face, you can also use your gestures and body language to facilitate authenticity and empathy.
No matter how poor the performance has been, when you are delivering negative employee reviews, you should stay away from yelling or using foul language. Since the focus is on facilitating development for your employee, yelling will only defeat the purpose, making the employee demotivated and pushing them towards even lower levels of confidence and motivation. Furthermore, it will negatively impact your organization from an employer brand perspective. It can also create a negative impact on the wellbeing of your employees.
While delivering the review, you may want to add some personal stories or anecdotes if you have yourself been through something on those lines. This will help you connect better with your employees and make them trust you more. Furthermore, it can enable you to illustrate how they can turn poor performance into something better with a live example in front of them.
Your negative review shouldn’t be a monologue where you deliver what you have written with the employee absorbing it as a passive recipient. Instead, make it a dialogue by putting forward questions to understand the reasons behind poor performance and how you and the organization as a whole can help turn the table. Hearing their side of the story is extremely important before deciding on the next steps.
When you are delivering negative employee reviews, you need to create a safe environment. It should not be harsh and the employee should feel comfortable in receiving what you have to offer. Also, make sure you deliver the review privately and not publicly shame your employee. They should see it as a developmental conversation in a safe environment, where they can also voice their opinions.
Finally, negative employee reviews need to be regular and not come as a surprise to your employees at the end of the year. Regular reviews will give your employees enough room to improve their performance. Furthermore, it will give them a clear picture of what to expect when the year closes.
To learn how SuperBeings can help you have guided conversations around negative performance review with AI recommendations based on performance and goals history as well as maintain a steady cadence to maximize the impact of such conversations, see this
After you have delivered the negative reviews to employees, the natural next step is to create a plan for improvement to help your employees reach the level of performance you expect out of them. This is a critical part of the performance management and talent development process for employees who have been consistently underperforming. Here are a few ways you can help your employees improve their performance.
If you have reached this level of negative employee reviews, you and your employee would be on the same page about their level of performance. Thus, it is best to create a list of action items that can help them improve their performance. To create the next steps, you must:
Next, your focus should not only be on planning the action items, but documenting them as well, because once they are out of sight, they’ll be out of mind. Furthermore, documenting them will help you remember the agreed steps and track progress every now and then.
Clearly document what needs to be achieved, by when and how. It can be a good idea to encourage your team members to constantly document their experience as well to help discuss what has been working well and what needs to improve.
Depending on the performance issue, you may want to introduce a performance improvement plan for your employee. It is a formal tool to address performance challenges which outlines specific goals and expectations along with clear actions that need to be undertaken over a duration of 30-90 days.
For more details on PIP, check out A guide to implementing a performance improvement plan (PIP)
You also must set up a cadence to discuss performance improvements or challenges once the next steps are agreed upon. Unless you connect regularly to discuss the status, you might find yourself at square one at the end of the next performance review period as well.
Depending on what needs to be achieved, you can set a weekly, fortnightly or monthly cadence to connect with your poor performers. While it may be seen as a regular review, it will also act as a reinforcer for them to ensure there is some improvement everytime the cadence to meet comes up.
When you are determining the next steps, it is important to identify the associated metrics as well. For instance, if you want your employee to become more detail oriented, your metric can focus on reduction in errors by a specific percentage over a specific duration of time.
The metrics will help you measure whether or not there has been an improvement in the performance as desired or not. At the same time, the metrics will help your employee move towards a specific goal.
While you have a set cadence, you may also want to check-in or follow up from time to time to make your employee comfortable enough to reach out to you in between your cadence for connecting. The follow ups can be over emails or calls or simple messages to check if everything is on track and to offer them any support whichever is needed. Especially in the beginning, you may need to check from time to time in case there’s any additional support that the employee needs to work on the action items.
Finally, to ensure that your negative employee reviews translate to impact, you must focus on evaluating progress. Use the metrics you defined to gauge the level of progress and document it whenever you evaluate the same. This will help you establish a trend over time.
Furthermore, if you feel the progress is below expectations, try to understand the rationale behind the same to check if putting the employee on a performance improvement plan will make more sense.
By now, you must have gained a clear understanding of how to write, deliver and follow up on negative employee performance reviews constructively. If you are keen to learn how best to connect negative performance issues with regular 1:1 meetings with your team members with technology, book a quick demo with one of our executives. We would love to show you around :)