The True Impact Of Culture On Business Operations

impact company culture on business operations

The importance of company culture cannot be overstated. More than 80% of businesses believe that culture is a potential competitive advantage, and nearly 90% agree that culture is key to business success. Yet, despite its importance, culture is an element of business that’s largely misunderstood. 

Many organizations find culture challenging to measure — and even more troublesome to manage. More often than not, the basis of business culture is confused with business operations. While the two are extensively different, corporate culture plays a significant role in influencing overall operations. 

Review the true impact of corporate culture on business operations and why a positive company culture is necessary for a healthy business. 

What Is Business Culture? 

Business culture consists of the values, beliefs, and behaviors that influence how employees and managers interact internally and externally. It defines the type of conduct that’s either encouraged or discouraged within a group, and highlights the ethics and etiquette anticipated by those representing the company. 

Within an organization, top leadership spearheads company culture. It is distilled into every aspect of the business through a multitude of processes. Ideally, culture should be fluid, blending company values with the daily experiences of employees. Business culture dramatically influences employee engagement, retention, and operational performance. 

What Are Business Operations? 

Business operations are activities used by a company to keep it running and earn profits. They include things such as work processes, hiring and retention, sales, and investment. Where business culture focuses on company values and behaviors, business operations are rooted in revenue. From sales and marketing to manufacturing, business operations are optimized to generate enough income to cover expenses. 

How Culture Impacts Business Operations 

Corporate culture influences company-wide behavior. It guides metrics such as employee engagement, retention, and potential churn. Because of this, culture also plays a prominent role in determining overall operational performance. In turn, positive company culture impacts several elements of business operations, from corporate identity to organizational innovation. 

1. Solidify Corporate Identity 

Your company culture is synonymous with your corporate identity. Both define the character of your organization, or who your business is, how your employees conduct business, and how others view you. When generating strategic partnerships with suppliers or potential investors, business operations rely on a strong, respectable corporate identity. 

According to Jeff Bartel of Miami, chairman and managing director of Hamptons Group, LLC and lecturer at Harvard University, the University of Miami Herbert Business School, and the University of Florida Levin College of Law, organizations should strive for a genuine identity rooted in solid company values. 

“Being your best authentic self and demonstrating agility and resiliency to challenges are key attributes,” says Jeff Bartel

2. Boost Engagement And Satisfaction 

For business operations to succeed, employees need to be engaged — and for employees to become engaged, they will also need to be satisfied with their work environment and corporate culture. In fact, studies show that companies with strong business cultures have 72% higher employee engagement ratings than organizations with weak cultures. 

When employees are engaged with their work, they bring their passion and purpose to operations each day. Not to mention, positive company culture creates an environment where employee feedback and recognition are the norms. This means that even those in leadership give and take feedback, generate meaningful working relationships, and improve overall workflow. 

3. Increase Employee Productivity 

In a survey of business owners, 86% say they believe company culture directly affects productivity. Employees who believe their organization provides a positive work environment and aligns with their personal values will be more motivated to increase general output. When employees feel empowered by a positive company culture, they’re more inclined to support integral business operations. 

4. Drive Collaboration And Innovation 

Lastly, corporate culture is vital to drive collaboration and innovation within organizations. Simply feeling like they’re part of a team inherently makes employees more motivated as they take on challenges. Thus a positive culture is necessary to increase opportunities for teamwork and problem-solving. 

As an adjunct professor of strategy, leadership, and innovation, Jeff Bartel agrees that corporate leadership should emphasize collaboration as a company value. “Companies that consistently promote collaborative working environments are five times as likely to be high performing,” Bartel adds. 

Amplify Corporate Culture, Enhance Business Operations 

Corporate culture is more than the bonds created between team members — it’s a roadmap for how your business will grow, the partnerships it will undertake, and its overall effectiveness. To enhance your business operations, begin by amplifying your corporate culture.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, And News Outlets