I recently wrote an op-ed blog for Reuters that explains why big paychecks do not replace corporate culture. It’s a topic we talk about a lot at Insigniam, because amazing things happen when people are passionate and committed to the same purpose at work.
As management consultants, it’s our job to help companies get results. Here are a few things we’ve learned from decades of business experience and research:
Past dynamics can hurt your future. That CEO may have retired years ago, but if senior management still believes they need to do things “the old way,” and wait for permission to make important changes, your company isn’t going to go much further than the status quo. One of our automotive clients dealt with this very successfully; the enterprise-wide transformation case study explains how.
Top-down management harms employees AND profits. After substantial ownership changes, an aircraft manufacturer faced reality: The former top-down management style was harming its competitiveness; employee morale ranked in the lowest 25th percent and the company was dealing with cost overruns and facing delivery timelines they weren’t sure how to meet. After a cultural transformation, the manufacturer realized $400 million in bottom-line value and employee morale rose to the 60th percentile.
Corporate values matter! Even as a business expands internationally, the core values that made the company unique should still be leveraged. One food products company we work with discovered how to apply those values in a new way but still give business units autonomy. The result? Improved employee engagement and restored profitability and growth.
Culture can make or break a company’s success. Do your employees find their work meaningful?