Managing the performance of your employees is an essential part of good leadership. How you manage, shapes your company's culture.
Multiple studies have shown that leaders who engage in the process of performance management produce incredible business results compared to those who do not. For instance, one study demonstrated that 50% less staff turnover, 10-30% higher customer satisfaction ratings, 40% higher employee commitment, and even double net profits.
So it's easy to see, when enough effort is invested performance management produces significant levels of engagement, retention, and organizational performance. Clearly a win-win for any business. In this article, we'll share with you a general framework which builds high-performing cultures and a guide on how to create one within your business.
What is a High-Performance Culture?
A high-performance culture is composed of a series of behaviors and norms which, when performed unanimously lead a business to achieve superior results. Meaning, a culture that drives good performances within any business and offers better financial and non-financial results ( e.g. customer satisfaction, employee retention, etc.) in the long run.
When the behaviors and norms of a company's culture act in accordance with the goals, customer needs, and employee priorities of the business, your company is more likely to achieve both financial growth and other positive of results, such as maintaining and engaging talented employees.
So, now that you've got a clear picture of the value that comes from a company culture focused on high performance, the next logical question would be, ‘How do you create a high-performance culture in your company?’
Keep on reading for the answer!
How to create a high-performance culture
1. Clarify your business values and communicate them consistently
Clearly articulating your company values makes businesses operations safer and a more productive place to work. Day in and day out, company values are the guiding principles that shape the actions of everyone in your company. As such, the principles you identify and communicate everyday directly contribute to your company's overall success.
2. Boost positive behavior
Cultivate a valuable 'can-do' mentality among your employees. Driving negative thoughts out of your business will add value to your company's culture and enhance overall performance. As a leader, rewarding employees who reflect your organization's values serves to reinforce ideal behaviors. Increasing the likely hood for repeated behavior and more can jobs well done. The success of your company rests partially on your employees' shoulders. Inspire employees to work more productively by consistently promoting positive behavior. This will strengthen leader-employee relationships effectively, thereby increasing employees' self-esteem and performance.
3. Encourage honest communications
A business that encourages honest organizational communication results in a lively environment. No matter what the subject of discussion is, there must be a fluid line of communication with an impartial and open conversation. Make sure the flow of data from the top level to an entry-level employee is seamless. This will require implementing appropriate communication systems and processes. To determine the best way to encourage open and honest communication do some research with your people and find out their preferences.
4. Employee empowerment
As a leader, it's imperative to build trust with your team members. To an extent, your employees must trust that your decisions will have a positive impact on them and the company. However, they should also feel motivated and empowered to make certain crucial decisions that are related to them directly or indirectly. The most productive leaders empower their staff to achieve their full potential. Here's how you can encourage growth and empower your employees:
- Show them your trust them
- Invest in them by providing training
- Clearly communicate the vision of the business
- Make room for small talk as well
- Allow freedom of expression within the work-limit
5. Gather Feedback
A company culture rich in feedback is a crucial ingredient for a positive results. Give your employees the time and space to provide feedback on a regular basis. This means intentionally designing processes to gather feedback from your team or staff throughout their tenure with your company—not just when they're going through an exit interview. Being open to transparent feedback will allow you to find out how employees feel about your culture and whether anything needs to be changed. Your employees need to know they have your support so that together you can strive to achieve the same results.
Here's a few tips to create a culture open to feedback:
- Motivate your employees to give feedback constructively and consistently
- Make room for feedback to emerge naturally
- Take all feedback seriously
6. Focus on the things that matter
Do you have a clear idea of what kind of things are important to your company culture? Often, company culture is mistaken for rewards and incentives. While these are important aspects and reflections of a company's culture, there are many other factors that may be central or core to your values, such as:
- Growth-oriented environment
- Appreciation for a job well-done
- A great level of transparency
- Diversity, equity, and inclusion
- A high sense of purpose
- Supportive and constructive leadership
Since a company's culture is expressed in a multitude of ways, it's critical to prioritize what matters most. Is it the kinds of incentives that are provided? Or, more importantly what kinds of behaviors are incentivized? These are questions you'll need to answer in determining what's most important.
7. Lead by example
The next step to building a high-performance culture is to lead by example. Let's face it, at the end of the day what matters most is what we’re doing—not what we're saying. Your employees and staff look up to you and see your actions as an example. This means you must live by the same values that you’d like your employees to adopt. To successfully push your business goals forward—every leader must lead by example.
Commit to creating a better employee experience. High-performing company cultures are created by design. Whether you're a leader in the C-suite, HR department, or middle management. Organizations that are serious about building a high-performance culture are tailored to the needs of their employees and clients—working above their rivals and capitalizing on dedication.
For information about how to increase performance through your company culture, contact us!