Organizational Culture And Performance Management Results. Metrics And KPIs
What makes high performing companies unique? What really drives high performance? Many managers associate high performance organizations with high spending ability. We all hear comments like – It’s easy to develop new products or grow the business with that kind of budget… However many studies have shown that high budgets are not necessary the drive behind high performance teams and companies.
For example, a Booz & Company’s study shows that investing more in research and development doesn’t necessary means better results. This might sound counter intuitive to many of us however fact is that there is a high correlation between organizational culture (culture alignment) and organizational growth and performance which includes business development and new product development.
Strategic alignment driven by appropriate organizational culture is the single most important driver of business success for both small and large organizations. By aligning the strategy throughout your organization and streamlining your various performance building blocks throughout the company actually you are building a foundation for long-term success.
Organizations which have cultures that are not appropriate for their strategies and have weak organizational alignment drastically underperform the competition. In addition, the majority of executives realize precisely what is actually at risk and also what makes a difference, regardless of whether their particular businesses do not constantly appear to perform appropriate to their expectations.
Throughout the board, for instance, participants recognized exceptional product or service performance as well as outstanding high quality as their own top rated strategic objectives. And additionally these people stated that their particular two most critical cultural qualities have been solid understanding of their customers' experience along with a taking a great pride in their products and solutions.
Research has demonstrated over and over that there are no even more fundamental origin of company achievements as well as disappointments compared to a organizational culture.
Which doesn't mean that strategy doesn’t make a difference, instead the specific strategy an organization implements is going to be successful as long as it really is backed with the suitable cultural characteristics.
Businesses whose strategic objectives tend to be apparent, and also whose cultures highly help support those objectives, have got an enormous edge.
Generally speaking, organizations furthermore carry on and demonstrate a variety of substantial performance gaps within the way their particular strategic objectives and cultural qualities bring about performance as well as help support the development.
Businesses which under perform the competitors have a lot to achieve should they close these types of gaps and accomplish greater levels of culture and strategy positioning.