Importance of Organizational Culture

Why is Organizational Culture So Important?

Cultivating a healthy organizational culture (also known as company culture) is essential for the long-term success of any organization. It not only benefits employees but also boosts the overall reputation and success of the organization. This

statement is widely agreed upon. So why are so many organizations still waiting to take action?

How do I know if my Company Culture is Unhealthy?

Honestly, it can be challenging to know when an organization is healthy or unhealthy. Because

unhealthy organizations are not uncommon, many people struggle with making comparisons.

Employees may not have previous experience with healthy organizations to use as a benchmark.

Consider this: When we have a virus in our bodies, we rely on a baseline to know that our current state

is not our normal state. Similarly, when we're immersed in an unhealthy work environment, it starts to

feel "normal." It's not necessarily healthy, but it is predictable. And predictability is comfortable. Just like

untreated depression or anxiety, we can become accustomed to the symptoms and learn to function

despite an underlying health issue.

What can be Done About an Unhealthy Culture?

Addressing unhealthy organizations must be done at the cellular level, meaning we need to examine and

shift the underlying beliefs and attitudes. However, we can begin to create change by looking at the

visible symptoms and the structures, practices, activities, and policies of an organization.

Symptoms of an unhealthy culture that may benefit from a closer look include low employee

engagement, increased turnover, difficulty attracting quality employees, low productivity, high

employee relations issues, and even lawsuits from previous employees. While it's true that we need to

assess these within the context of the current societal environment—since factors like turnover and

hiring can be influenced by external conditions—focusing only on external factors can be a mistake. If

we ignore internal factors, we miss an opportunity to differentiate our business and position it as a

leader in the market.

Addressing these issues requires a holistic approach that considers both external pressures and internal

dynamics. Doing so not only leads to a healthier organizational culture but also establishes a sustainable

competitive advantage. At Ripple Effect Culture we say this advantage comes from creating sustainable

excellence. Take the quiz to find out if your organization can benefit from a Culture of Sustainable Excellence.