Building Culture and Providing Purpose for Employees

Culture is a two-way street.

Culture needs to be lived, breathed, walked, and talked about by all levels of leadership within a company. But it also needs to be a groundswell. A truly healthy workplace culture must be built by employees. I believe the meeting in the middle is where the magic happens.

Over the years, companies have gotten better and more sophisticated at measuring true engagement to gauge if they've successfully established a healthy workplace culture.

They ask these important questions:

• Do employees recommend their company to their friends and family, putting their own reputation on the line?

• Are employees staying with the company or looking to go elsewhere, essentially "showing how they feel with their feet"?

• Are employees using discretionary effort? Are they willing to go above and beyond for their companies and fellow employees to make a difference?

I believe that the last question is the most important. If employees are highly engaged, customers and partners experience exceptional service, and value is driven for shareholders. I've seen many companies make the mistake of prioritizing their shareholders first, forgetting that their employees are the ones connecting with and serving customers, and ultimately driving financial performance and growth. Data shows that highly engaged employees drive successful outcomes for companies and bottom-line results.

But there's more to it. Culture shouldn't stop at just culture. It's also about providing purpose for employees.

What inspires employees to give discretionary effort? It's not just about what we do, it's about how we do it and why. In the wake of the COVID-19 pandemic, employees are especially discerning today. Employees are digging deeper into what makes them happy and inspires them to come to work instead of staying at home with their children or their elderly parents. COVID brought life into a different perspective.

About a year ago, General Stan McChrystal (the founder of McChrystal Group) and Hubert Joly (a former CEO of mine and author of Heart of Business) did a live interview on leadership in times of crisis and how prioritizing employee purpose can help meet the demands of a changing marketplace. I encourage you to listen to the interview and hear the insights of these strong leaders.

Today, companies must focus on driving a culture where everyone has a voice and can bring their full self to work, providing purpose, and prioritizing inclusion as a business imperative.

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This is the final blog of the series on cultivating success by prioritizing inclusion, based on a recent conversation with Owen Daugherty, McChrystal Group's Communication Manager. Check out my previous posts here.

Keeping People Invested: Ideas for Measuring Inclusion

Inclusion often gets put in the "too-hard pile" because it's difficult for companies to measure. Leaders are often better at measuring diversity, but it’s harder to put numbers on how employees think and feel about their work. My colleague Ché Albowicz at McChrystal Group, and principal of McChrystal Group’s Team Science, has spent lots of time researching ideas for building and sustaining inclusive work environments. As I reflect on some of my ideas for measuring inclusion, Ché’s recent research on a network-centric approach to inclusivity is at the top of mind, and a must-read when making prioritization plans.

As Ché points out, diversity and inclusion are not directly correlated. While a company may be succeeding at increasing diversity, their employees, in turn, may be feeling increasingly isolated and undervalued. In my latest blog, I discussed the need for leaders to demonstrate deliberate behaviors to promote inclusion in their teams. As Che puts it, “an organization must also change its processes, mindsets, and culture,” in addition to increasing diversity, to build a truly inclusive environment. Addressing inclusion is a complex challenge, but I strongly believe that investing in employees and inclusivity is always worth the dollars spent. I know many success stories about companies improving their employee retention, customer relationships, and financial performance by nurturing inclusive environments for their employees.

Here are some questions to consider when measuring inclusion:

• Has diverse hiring driven a more inclusive work environment?

• Is that inclusive environment now driving better performance and outcomes?

• Have you won more than you lost with your customers? (Inclusive teams win more than they lose; it's a fact!)

An inclusive environment often leads to more engaged employees. Employees are happier and more fulfilled when they can bring their whole selves to work and share ideas freely. As a result, inclusive companies experience higher retention rates and lower turnover. Imagine the time, money, and effort that would be spared on recruitment if retention were increased!

It’s also important to consider the impact on customer loyalty. People want to do business with someone they know and trust. When customers build relationships with employees, customer confidence and loyalty improve, which often leads to an increase in sales.

Leaders, consider these metrics when mapping out your priorities, and I guarantee you won’t regret putting inclusion on the list!

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This blog is a part of a series on cultivating success by prioritizing inclusion, based on a recent conversation with Owen Daugherty, McChrystal Group's Communication Manager. Catch up on the series HERE!

Making Inclusion a Priority

Just saying you're inclusive doesn't make it so. It must be made a priority.

To be truly inclusive, leaders need to demonstrate very deliberate behaviors. In my experiences around the globe, inclusion has always been about bringing life experiences to the table and being able to share those experiences to drive better decision making, strategy, and alignment. That kind of inclusive environment motivates employees to think differently, be innovative, be creative, and inspired to drive change.

Inclusive workforces yield outstanding outcomes and strategic performance. Historically, business leaders have hired people who look like them and those who have had similar experiences and career paths. However, I believe that this attitude will no longer be acceptable. Inclusive workplaces will win every time.

Business leaders must be comfortable being uncomfortable today. It's one of the most effective ways to drive transformation. That uncomfortableness is where the best work gets done. It's where every employee feels free, and expected, to share their voice, have a different opinion, and drive change. And, as a result, companies will continuously innovate and enjoy greater customer satisfaction, increased shareholder value, and ultimate financial performance.

For more ideas about prioritization, check out McChrystal Group's Great Prioritization Playbook.

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This blog is a part of a series on cultivating success by prioritizing inclusion, based on a recent conversation with Owen Daugherty, McChrystal Group's Communication Manager. Read the first blog of the series here.