To illustrate just how important culture in an organization is, consider this hypothetical scenario. Two HVAC companies have been major competitors for years. In one organization the culture is very good, in the other it is very bad.
Management of Bad Culture HVAC is focused on the profits, not the people. If profits are down, employees are laid off. Raises are rare, and there is no bonus structure.
The employees live in constant fear of losing their job.
They intentionally make co-workers look bad, hoping to survive the next layoff. If a good opportunity presents itself, they will gladly leave the company. Turnover is high and morale is low. When employees do not feel safe, they focus on themselves. Their primary goal is to survive.
Conversely, Good Culture HVAC is focused on the people, not the profits. When the COVID pandemic hit, profits were critically low.
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The CEO called an all-staff meeting. His message was: “We are in this together, and no one needs to be laid off. All of us will suffer a little, so no one suffers a lot. I will be the first to take a temporary pay cut and reduce my hours to 35 hours per week. When profits return, my pay can be restored. Who will join me�
Once they were profitable again, Good Culture HVAC gave bonuses to everyone for their sacrifice. The employees did not need to focus on self-preservation, they focused on achieving the company goals.
The employees took care of each other. They did not leave when opportunities arose. Turnover was low and morale was high When employees feel safe, they focus on doing their job. Their primary goal is achieving company goals.
The leader determines the culture of the team. Their primary responsibility is to create a safe environment for everyone. How is the culture in your organization?
Bill Nordbrock is vice president of community relations for SCORE Southern ÃÛèÖÖ±²¥, a nonprofit that offers free small-business counseling. For more information, go to , send an email to mentoring@scoresouthernaz.org or call 505-3636.