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The impact of corporate culture on Human (Sales) Capital performance!

Published on August 30, 2024 at 17:00

In order to enable above-average human performance (also known as human excellence) in an organization, there are quite a few factors that influence it. Precisely where companies are constantly striving to create competitive advantage in a turbulent market, it is therefore essential to pay extra attention to this. In order to ultimately achieve ‘human excellence,’ the initial impetus for this must already be given higher up in the organization.

Organizational excellence

The right balance between People, Strategy and Sales, organizational alignment and the pursuit of a ‘high performing organization’ form an important foundation. Organizational excellence (also called organizational excellence called) is an important first step. From strong leadership and effective communication to a culture of continuous improvement and employee engagement. When an organization excels in these areas, employees are enabled to reach their full (talent) potential, leading to increased productivity, creativity, job satisfaction, commercial acceleration and sustainable growth.

Commercial excellence

Another important component as we look within the organization, besides wanting to create an outstanding organization, is the pursuit of commercial excellence (also called commercial excellence mentioned). Especially for employees involved in the commercial customer process, this is a must! Commercial excellence focuses on driving business growth and profitability. This includes understanding the market, adapting to changing customer needs, and delivering high-quality products and services. When a company excels commercially, it creates opportunities for its employees to excel as well, whether in terms of career development, skills or financial incentives.

Research, numbers and impact of corporate culture

To enable both organizational and also commercial excellence, a healthy corporate culture is perhaps one of the most important requirements. In a recent survey done among 1,800 employees in several countries showed that 50 % of all employees say they work in an organization with a toxic culture. Such a culture is best recognized by a reduced sense of personal responsibility and (thus) placing blame (the blame) on others. The probability that someone in a toxic organization still shows improvement initiative and proactive behavior is 5%. The chance that someone in such a toxic culture is ‘engaged’ and experiences job satisfaction is 4%. (That alone literally costs many (tens of) thousands of dollars per employee.). The probability of someone who experiences the culture as toxic working in a ‘high performance team’ with good connections between them is even lower: 3%.

Management is the great example

Perhaps an ‘open door’ but in my opinion mega important to mention is the fact that the management should be ‘the great example’ of culture carrier. In practice, we often see this differently. For example, if management starts talking with employees (gossiping along) or shares certain assumptions with other employees - without having listened to the persons concerned - there is a great chance that employees will adopt this behavior and before you know it, a toxic corporate culture of ‘elbow work’, gossiping, shirking responsibility and/or ‘backroom politics’ will arise.

The impact of corporate culture

The impact of a company's culture on employee performance can and may not are underestimated. A positive and supportive corporate culture can motivate employees to excel, and foster a sense of connection, purpose and commitment and be a driving force in cultivating an environment in which employees thrive, talent can come into its own and employees contribute to the long-term success and sustainability of the organization.

On the other hand, a toxic or dysfunctional culture impede employee morale, productivity and overall performance. It is a driver of talent wastage and high unwanted turnover. Unfortunately, too often we see talented employees then leave an organization and the lower performing employees are left behind because they simply don't dare take the step to leave.

When an organization prioritizes creating a culture of excellence where values such as transparency, collaboration, innovation and respect are adhered to, employees are more likely to be inspired and able to do their best work. This positive culture not only improves employee job satisfaction and well-being, but they will also be committed to achieving organizational goals.

Achieving human excellence

Ultimately, we see that human excellence is the result of a holistic approach that prioritizes both employee well-being and business success. By intertwining organizational excellence, commercial excellence and a positive corporate culture, companies can create a mega powerful synergy that leads to commercial acceleration, sustainable growth and maximum return on the human capital performance.

It certainly pays to reflect on this from time to time and take a completely objective look at your organization and critically examine whether you, as a company, are still ‘on track’ AND whether employee self-responsibility is sufficiently present in the organization.

‘Culture is not an initiative. Culture is the enabler of all initiatives.’ - Larry Senn