News: Culture necessary to drive performance: Gartner

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Culture necessary to drive performance: Gartner

A recent research by Gartner suggests that "Culture is a critical differentiator in organizations' performance.
Culture necessary to drive performance: Gartner

According to a recent research by Gartner, aligning the company’s workforce with the desired culture can improve performance against revenue goals by 9 percent. However, only 31 percent of HR leaders believe their organizations have the right culture to drive performance.

Brian Kropp, Group Vice-President of Gartner’s HR practice shares in media, "While many leaders may view culture as a ‘soft’ topic, it has become a key differentiator for how and why organizations outperform." He further said that Workplace culture can impact a company’s access to talent as job seekers increasingly consider the culture of prospective employers — and investors as well. 

The research revealed that there is no “right” culture and no cultural type is a consistent predictor of organizational performance. The study suggests that instead of focusing on what type of culture a company should follow,  leaders should focus on getting their culture to perform. For this to happen, employees must be aligned with the organization’s culture across three domains:

  • Knowledge: Know what the culture is 

  • Mindset: Believe in the culture 

  • Behavior: Behave in a way that supports the culture

The study also revealed that failure to achieve workforce cultural alignment can lead to a decline in employee performance by 12 percent.

Hence, it is absolutely crucial to realize that for a business to perform, leaders must embed the culture and their company’s priorities into systems and processes, and provide business-unit leaders with support and resources to do the same. 

Topics: Culture, Strategic HR

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