Company Culture 103: How culture impacts employee performance
It’s almost impossible to read an article about company culture that doesn’t talk about its impact on employee performance. Yet for all of this coverage, there is very little public data for leadership teams that supports this relationship. We can do better.
I’ll amend that earlier statement to say that there is very little public data that is easily digestible. A large body of research exists that supports the relationship between company culture and performance, but it requires that you wade through dry academic papers and that you have some knowledge of statistics.
Pomello has worked with a number of companies to validate this relationship using data specific to that company. So how do we help managers understand their culture in the context of their team’s performance? To validate the relationship between culture and performance you only need two sets of data: 1) a culture analytics framework for measuring employee alignment, and 2) a consistently measured performance metric.
These data sets can then be mapped to demonstrate the correlation between culture and performance. Additional data can be gathered over time to build on this initial trend, and demonstrate predictive power (aka a regression model). The example highlighted below illustrates the results from a national retail sales team. The analysis shows a strong relationship between higher cultural compatibility and the volume sold by a given associate.