Corporate Culture’s Bottom Line Impact

Over the past few years, conversations about “corporate culture” have been on the rise. Most employees will tell you that their respective companies have a culture, and many employers believe that culture impacts their business—somehow. But is this awareness of corporate culture’s existence enough, or is there something more that you, as a leader, should do to develop the culture of your organization? For many in leadership the real question is this: does corporate culture really impact the bottom line?

At LEADon, we’re more convinced than ever that your corporate culture—and, more specifically, what you’re doing with it—definitely does impact your company’s productivity and profitability. But don’t just take our word for it. A respected Harris Poll of 23,000 U.S. employees discovered a stunning disconnect in key industries when it comes to culture. If we described those findings in terms of a football team, this is what your employees might look like:

  1. Only 4 out of 11 players on your team would know which end zone was theirs.
  2. 2 players out of the 11 on your team would even care where the end zone was.
  3. Only 2 of your 11 team members would understand what position they played.
  4. Sadly, all but 2 players would, in some way, be competing against their own team members rather than the opponent.

In other words, leaders who don’t invest in developing a healthy corporate culture not only end up with an unproductive team but also a counterproductive one! From a 2012 study, we know that companies categorized in the top 25% of corporate culture had higher return-on-assets versus those in the bottom 25% (6.3% vs. 4.5%), higher sales growth (15.1% vs. 0.1%), and higher net income growth (989% vs. -47%).

Leaders, your corporate culture is impacting your bottom line results—one way or the other. Do you want team members who work together toward the same goals? Wouldn’t it be incredible to report a net income growth of 989% at year’s end? Intentionally developing a strong corporate culture can have positive impact in your organization—now and in the future.