Building a culture of success:

Companies with strong shared cultures tend to perform better and strong shared cultures come about when identifiable values exist which are reflected in everyday activity at all levels. This is the conclusion of new research from the Chartered Institute of Personnel and Development (CIPD), the leading professional body for those involved in the management and development of people.

The new report is the latest in the CIPD’s ongoing programme of research into the link between people and performance, which has demonstrated that factors such as employee attitudes, organisational culture and HR practices are more important as predictors of business performace than more traditional predictors such as research and development, technology and quality. The research has demonstrated a clear link between the way in which people are managed and developed and the bottom-line.

The new report Vision and values: Organisational culture and values as a source of competitive advantage found that many of the companies studied focussed on a Big Idea or a few key words, which simply expressed the purpose of the organisation, how it works and what it is like to work there.

But the research shows clearly that a big idea on its own is not enough. To be effective and drive improved performance it needs to be:
* Embedded.
* Integrated.
* Enduring.
* Habitual, collective and routine.
* Measured and managed.

In other words is must drive behaviour which is repeated, collective, routine and therefore habitual.

The research also clearly shows a link between strong shared values and high commitment. Where strongly shared values can be demonstrated, people are more likely to be satisfied, displaying higher levels of organisational commitment, lower quit rates, greater customer satisfaction, and lower levels of dissent or dissatisfaction over levels of pay. In one large retailer studied, it was shown that people in different branches receiving identical pay had widely divergent levels of satisfaction and commitment, directly correlated to the extent to which they demonstrated shared values.

Angela Baron, CIPD Organisation and Resourcing Adviser, said: To deliver effective performance, organisations need to work hard to create and maintain a shared vision and values amongst the people who work for them. Mission statements and strategic decrees from on high are not enough. People need to feel a sense of purpose which is reflected in a positive environment. If organisations are going to get the discretionary behaviours from individuals which are so important to business performance, they must work to create supportive cultures which encourage innovation and performance.

New employees will adopt the culture and behaviours of the existing team - and these cultures and behaviours become self-perpetuating. A change at the top of a team cannot, in itself, change the values of the team.

Organisations need to adopt the people management practices that create a virtuous circle - in which people want to build success, enjoy working for successful organisations, and exhibit the discretionary behaviours that continue to build that success.