How does company culture affect your business?
Employees who constantly feel energized, are engaged with the organization, and are satisfied with their jobs don’t lose motivation and have good performance results that lead to increased company profit. But did you know that behind company performance stands company culture?
Alina Dizik has done some research and reported interesting results on The Wall Street Journal from a study conducted by a group of researchers who analysed company performance by surveying the employees working in sales departments at 95 auto dealership companies.
It lasted for 6 years, during which time researchers studied the relationship between company culture and sales. The main finding is that company performance depends on its culture.
Quoting Dizik, “Companies that got good grades from employees on culture early in the study generally had higher profits in later years, Dr. Gillespie says.” According to Dizik, the studies reveal that the culture in sales departments directly affects customer satisfaction and loyalty, which in turn brings in better sales and thus, higher profit.
On the contrary, sales and profit dropped in the auto dealership companies that didn’t consider their culture as a crucial factor for business and didn’t work on improving it during the 6-year study. To get the best results, improvements should start with changing the culture in smaller teams, and then in individual departments, and finally, in the whole company.
For better company performance and profit, you need to think smart. Figure out how to motivate your employees and develop the best possible company culture for your business.
Do you want to build and maintain new habits? Get your free PDF version of the Don't Break The Chain calendar and start today!
Do you want to build and maintain new habits? Get your free PDF version of the Don't Break The Chain calendar and start today!
The original post “The Relationship Between Corporate Culture and Performance” was published on The Wall Street Journal, February 21, 2016 (written by Alina Dizik)
