25 Jul Organizational Culture: Metrics and Techniques to measure it
Organizational culture has become one of the main reasons why a person chooses or not to join a company. In addition, it directly affects the motivation, engagement and performance of the workforce.
There are many types of cultures, which even differ from each other between companies in the same sector. But what is clear is that company culture is a crucial dimension in business development. In fact, in a recent survey conducted by the prestigious consulting firm PwC: 67% of managers point to culture as the most relevant element for business success, above strategy or operations.
An element that is not stable, since it changes as the needs of the employees and the labor market do.
So, carrying out a correct monitoring of the corporate culture is essential to know that we are adapting to all these changes, being able to offer our teams an employee experience that lives up to their expectations.
What is the organizational culture?
Daniel Coyle in “ The Culture Code ” defines organizational culture as the set of living relationships working toward shared goals.
These are the beliefs, values, norms, traditions and practices that drive the course of all the company’s actions, decisions and activities. The organizational culture represents the work philosophy, the personality, and the corporate DNA.
In short, how the things are done.
A strong and robust culture projects stability and keeps employees pulling in the same direction, making it easier to achieve all objectives.
Why is it important to measure organizational culture?
According to a study conducted by the Spencer Stuart firm, 95 % of company managers agree that culture represents a source of competitive advantage.
Thats why, if you analyze the state of your culture, you will obtain data with which you can:
- Discover what factors affect business development from the deepest levels.
- Identify opportunities and areas for improvement.
- Know what procedures need priority.
- Improve your communication and influence over your team members.
- Facilitate the alignment of personal and strategic objectives.
- Design better promotion and hiring plans.
- Build a healthy work environment.
- Boost employee motivation, performance and productivity.
All this information will provide managers and directors with the necessary tools to make the best decisions and build a company prepared to obtain great results.
Despite this, the same Spencer Stuart study states that 28% of management managers do not have the appropriate instruments to carry out a good measurement of organizational culture.
So how can we measure the culture of a company?
What metrics are used to measure culture?
Before sharing with you the most appropriate techniques to obtain reliable data that drive your decisions, it is important to know what we need to measure.
There are certain parameters that will be very useful when it comes to understanding what the culture of your organization is like and if you are taking it on the right path:
- ENPS. This metric tells you how likely a person is to recommend your business. If the result is high, it means that employees are comfortable and happy with the culture of your company, and will tell others that it is the best place to work, encouraging the attraction and retention of talent.
- Turnover. The turnover rate is one of the most relevant indicators to measure the impact of your culture on employees. A bad corporate culture will drive their voluntary leave, leaving the company without its most important assets.
- Performance. A positive culture empowers teams and strengthens their motivation, which translates into increased performance and productivity. The better the result, the better your culture.
- Feedback. Continuous communication is the key to success. It enables leaders to understand the expectations of their team members and respond to their needs. When employees don’t communicate, it can be a sign of a toxic culture that inhibits people from sharing their ideas.
Now that you know what you have to measure, let’s see how to do it.
Resources to measure your organizational culture with success
As we mentioned at the beginning of this article, corporate culture is not an element that remains stable over time. Actually, it requires constant dedication, so leaders should measure it frequently to always have it on point.
Below, we present different options with which to take the pulse of the culture of your organization.
No one better than the employees to know what is happening in the organization. They are the ones who work under the influence of culture, and they know better than anyone the dynamics that are carried out by both their managers and their colleagues.
Here are some questions you can use in your surveys:
- Do you know the strategic objectives of the company?
- Do you think that the management has a clear vision of where the organization is going and how to get there?
- Do you know the history of the company?
- Do you think we can achieve our goals?
- Do you think the company brings a clear differential value to the market?
An engagement survey software will help you collect feedback from your team members and gain the insights you need to drive a positive culture that boosts employee motivation, loyalty, and satisfaction.
Pulse surveys are like employee surveys, except they are shorter and more frequent.
One of the advantages that makes different this type of questionnaire from specific ones is that you can monitor the results of the dimension you want to measure in periods of time, being able to observe its evolution in real time.
In addition, being short and simple, the participation rate is higher, which means that the data provided will have more relevance in decision-making.
1 on 1 meetings
The 1 on 1 are a good resource to get to know your team in depth. Ask how they carry out their work, the challenges and difficulties they face and what their relationship with their colleagues and other leaders is like, and you will get a global vision and a greater understanding of what your company culture is like.
Onboarding is the stage where newly arrived employees perform different tasks that will help them get an idea of how things work in the organization.
Asking new employees how this transition stage has been will give you clues about how your company culture works and, in addition, will help you put yourself in their shoes to design more satisfying experiences.
Focus group is another very useful resource to know and understand how employees experience the organizational culture.
Having the perspective of different employees will allow you to compare perspectives and see how culture affects each person in a unique way. If you dig deeper, you can adapt every aspect of your culture for better results.