Communicate surfaces the discussion on organizational culture with the Founder and CEO of the Middle East’s first dedicated workplace culture consultancy – Together's Lucy d’Abo, and Hala H. Kabbara CIPD, Group Head of Talent Development for AW Rostamani Group. Read on to find out what this concept means and why it is critical for companies today to re-think culture in the workplace.
From left to right: Lucy d’Abo, Founder and CEO, Together Inc., and Hala H. Kabbara CIPD, Group Head of Talent Development, AW Rostamani Group.
In today’s heavily saturated economic and sociopolitical landscape, there exists a multitude of interpretations of culture. Metaphorically, culture defines a set of shared values and behaviors within a particular society or community. The term 'culture' originated from the Latin term ‘colere,’ signifying the act of tending to the earth, growing, or cultivating.
The evolution of a concept is often intricately linked to the reasons for its inception. In this digitally dominated era, we find ourselves unconsciously drawn to fleeting trends and buzzwords, inadvertently overlooking the depth of the history that shapes these concepts. Exploring the origin of the concept of culture will aid us in redefining its nature in the realm of work. Organizational culture, or company culture can be best described as the personality of an organization.
In past research, a healthy organizational culture has proven to increase employee engagement, productivity, and performance. Despite numerous ongoing debates surrounding company culture and the dire need for leadership to actively invest in creating one, widespread misconceptions persist. Culture is not a one-size-fits-all concept; rather, it is born organically and is unique to each organization. There are no right or wrong components to it – it’s subjective and can depend on numerous factors including the “why” and “how?”.
Lucy d’Abo, Founder and CEO of the Middle East’s first dedicated workplace culture consultancy – Together; along with Hala H. Kabbara CIPD, Group Head of Talent Development for AW Rostamani Group, dive into the various aspects of organizational culture and how a functional corporate culture can act as a differentiator in the marketplace.
d’abo defines organizational/company culture as the “shared values, attitudes, behaviors, and beliefs that make up a work environment.” The values state the aspiration of the organizational culture, but the culture breathes in an organization’s day-to-day interactions.
Why is it so important?
“D’abo cites how companies that proactively manage their culture demonstrate up to a 516% higher increase in revenue than those who do not.
“Having a strong business strategy is a given, but culture is the enabler to achieve it. Every organization has a culture; the question is, is yours helping or hindering your ability to achieve your business goals?” she asserts.
“A recent Gallup study reveals that employees and teams most aligned with their company culture consistently outperform those who are less aligned on internal performance metrics. Kabbara also emphasizes the role of a positive culture in attracting and retaining top talent, among various other environmental factors.
“A positive culture attracts and retains top talent, influences customer relationships, and guides ethical decision-making. It also shapes communication, collaboration, and organizational identity,” she explains. Expanding on Kabbara’s observation, d’Abo explains how companies with an aligned culture can save on the hefty cost of employee turnover and retain talent.
“Not only is high staff turnover disruptive, but it’s also costly. Gallup indicates that the cost of replacing an employee can range from half to twice their annual salary. Companies with a positive culture provide more enjoyable workplaces and, more importantly, tend to have better retention rates. Furthermore, employees are likely to become advocates for the business, serving as recruitment champions and referring to their organization as a great place to work,” she explains.
Culture plays a pivotal role in boosting employee morale. d’abo explains, “A culture that fosters a sense of connection and belonging helps employees identify themselves as integral contributors to the organization.”
Your culture should echo your values.
Words need to be converted to action. Merely putting a mission, vision, what we are, and who we are statement out to employees is not enough. Organizations need to make sure they’re employing programs and trainings to root their purpose into their employee’s moral compass. Most of all, it’s crucial to give people the power to make a choice – whether to connect or disconnect from the company’s core purpose.
“Aligning organizational culture with core values ensures a consistent connection between what a company claims to value and what employees genuinely experience in the workplace. This harmony fosters a purpose-driven environment that not only attracts top talent but also sustains a positive and effective working atmosphere over the long term,” explains Kabbara.
The post-pandemic era bears witness to a growing collaborative spirit among companies within the same sectors or across others. In circumstances like these, it›s crucial for companies to analyze their individual stances on culture.
“Seventy percent of change initiatives fail to achieve their goals, largely due to employee resistance. More so than change, humans are hardwired to fear the unknown, which is why a strong culture and consistent communications are important to help remove fear, clarify direction, and reduce resistance,” discusses d’Abo.
“In the case of mergers and acquisitions, many cultural aspects end up in a clash. Alignment is critical during times of change; a study conducted by KPMG suggests that around 83% of mergers fail due to cultural issues. This is attributed to differences in working styles, communication breakdowns, and a lack of value alignment. The two cultures must coincide in harmony to achieve the desired financial goals for the newly formed organization,” she further adds.
Organizations can achieve and sustain a strong company culture that drives high performance using a holistic approach to measuring and managing culture. There are no predefined cultures that companies can just replicate – they need to be personalized and self-defined.
Leaders are the drivers of culture.
“Effective leadership is one of the fundamental pillars for building exceptional organizational cultures,” asserts Kabbara.
She explains how a leader, irrespective of his/ her title, holds the capacity to influence and shape an organization's culture. The tone set by leaders significantly determines how employees engage with and contribute to the culture. Backing her on this, d'Abo adds, “Enduring shifts in company culture is almost impossible to achieve without full leadership buy-in and a commitment to communicating and role-modeling the change. Their guidance is important to define what success looks like, and their engagement builds credibility in culture transformation.”
Whilst leaders are the anchor and enablers of culture in a company, they cannot do it alone. “Culture must be a movement, not a mandate. Everyone has a part to play in building a positive workplace culture, this is why in any change initiative, an important role of a leader is to ensure every level in the workforce is heard and engaged in the process. Cultures that are created and developed and maintained in collaboration with the workforce are what create sustainable change, and leadership legacies,” claims d'Abo.
A cultured organization is resilient.
In times of hardship, the true essence of both individual and organizational character is laid bare. The character of organizations is under definition, and safeguarding company culture is not just a mere addition but a necessity. Amidst the challenges people face, there lies an opportunity to extend a helping hand at a human level. What if the workplace could engender feelings of trust, humanity, and positivity? Organizations possess a unique capacity to act as a stabilizing force.
Mckinsey states how 45% of organizations are anticipating skill gaps within the next five years, and about the same number are reporting skill gaps today. Many are still reeling from the effects of the Great Resignation: Record numbers of people left the workforce during the COVID-19 pandemic, and those who are returning are demanding greater compensation, flexibility, development opportunities, and purpose at work. This underscores the need for a long-term approach to building a cultured workforce.
Expanding on this finding, d'Abo explains how a robust culture empowers the workforce to navigate uncertainties - enhancing agility and speed while maintaining a clear direction.
“The actions and outcomes may diverge based on the chosen path or the challenges faced, but the ‘how' of managing them should consistently align with your values. Consider the scenario where a decision is needed on implementing AI technology for efficiency improvement. In an organization with a low-risk, bureaucratic, and blame-oriented culture, convincing someone to make the necessary decision becomes difficult. Conversely, in a company culture that prioritizes trust in its people for decision-making and collaborative problem-solving, adapting to change becomes a natural response.”
“Agility is not antithetical to consistency. Company culture and values act as a compass, not a rigid map. They serve as a guiding force for decision-making. A well-established culture that empowers, enables, and trusts its people to consistently act in line with company values is well-positioned to thrive in the face of change and seize opportunities,” concludes d'Abo.
This piece was first published in Communicate's inaugural Best Places to Work 2023 issue.
