Organisational culture: why it is important for every business

Posted by Tiffany Leung on 28 Aug


Organisational culture is a staple of management training, business conferences and countless industry blogs, books and published research. So why, after so much time invested in understanding the subject, do companies still find it difficult nurturing a culture that delivers results?

If you find it difficult to define your company culture, with employees unable to articulate what it is - then you may need to review and assess your business’ organisational culture.

Attracting the right recruits with the right culture

Every employee is a willing or unwitting recruitment advertisement for your company. Apprentices, graduates and seasoned professionals alike will likely have extended professional and social networks.

The first words from their lips, or words from their keyboard, will reflect your company culture. Cultivating a culture that works for them and aligns with their values will help turn your committed, engaged employees into ambassadors. Not just to customers, but to their professional and social networks that could be your next pool of shining recruits.

Strengthening strategic insights by cultivating a good culture

Knowing the culture and values of your company makes finding compatible strategies to solve problems and responding to challenges more straightforward. It makes it easier to deploy initiatives that will be accepted and adopted.

Many strategies – digital, organisational, growth – fail because while they are effective on paper, they often do not fit with a business’ culture. Digital transformation can deliver value to companies - but if the workforce culture yearns for the good old days over anticipation for what could be next, it may not be the right fit. 

Genuine cultures enforce genuine brands 

Have you ever had one experience of a brand online, only to have a completely different experience once you’re on the phone or face-to-face? Nurturing good organisational culture throughout a company, not just at the board and strategic levels will ensure customers have consistent brand experiences that enforce the company’s identity.

Healthy organisational culture counteracts unhealthy societal divides

Every good company has the potential to make the world better through their products, services – but also through their social impact. Companies are undertaking business in possibly one of the most divided periods of recent times; a good culture will rally people of different political and other convictions on a common problem and cause – helping society while building the business.

Cultures that help people, help businesses

Struggles with mental health are on the rise, which can be related to workplace absences. A company that hasn’t considered how struggling individuals will respond to their company’s culture will likely see a rise in mental health-induced absence. But a culture of openness and acceptance will aid in employees’ recoveries – and incidentally forwarding the business’ objectives.

Creating a balanced culture 

Uninhibited cultures will breed unfocused, flailing businesses; inhibited cultures will breed complacent, impeded businesses. Companies need to develop a balance in their culture that favours focus and innovation, conviction and questioning. Only then will the workforce spot the difference between good ideas and effective ideas.

Although organisational culture is chiefly assembled from the people that make up the business, technical and physical pieces also contribute to the culture puzzle. A company’s choice of premises will have an impact on culture – what do the area and buildings say about the company? A headquarters that is difficult to navigate and find colleagues will stifle, at least to some extent, a collaborative culture.

Companies utilising business processes that rely on outdated systems can potentially curb an innovative, transformative culture; while a company that invests in an ERP solution that favours flexibility and usability will undoubtedly have a greater chance of generating original ideas that will deliver value and set the company apart from competitors.

Topics: Business Efficiency, Productivity, Management, Food Manufacturing

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