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1、Creating a High-Performance Culture:The Role of Company Culture in Driving SuccessARBINGER INSTITUTE RESEARCH REPORT:Table of ContentsForewordIntroductionKey insights1.0 What does a high-performing culture look like?2.0 The impact of effective leadership3.0 Employee engagement&team performance4.0 Th

2、e role of diversity,equity&inclusionThe competitive advantage:mindsetParticipants and methodologyAbout the research partners3456121519232526RESEARCH REPORT|2ForewordCulture is both immensely impactful and notoriously difficult to define and to shift.It arises from the complex interplay of individual

3、 and collective values,behaviors,beliefs,mindsets,traditions,policies,and more.Culture can align with or contradict explicit internal messaging,and,at a corporate level,it ultimately answers the question,“What does it feel like and mean to work here?”From our experience with thousands of clients aro

4、und the world over the last 40+years,were convinced that culture plays a crucial part in organizational success and that it can be improved in scalable,replicable,and sustainable ways.Weve also witnessed the primary reason that organizations fail to improve their cultures:they focus on changing the

5、external behaviors of their employees instead of addressing the fundamental mindsets that determine An organizations culture is like air:vital,omnipresent,and at times,invisible.Air and culture alike can be taken for granteduntil they become toxic.behavior.However,when properly understood and implem

6、ented,culture can be transformed from lackluster happenstanceor even liabilityinto an enduring competitive advantage.In the turbulence of a post-pandemic landscape,the need for people-centric and effective organizational cultures has never been greater.To shed greater light on the relationship betwe

7、en company culture and organizational success,we partnered with Ascend2 to survey over 300 executives and decision makers.Their responses clarify the obstacles to and benefits of high-performing cultures;the role that leadership development,team performance,and diversity,equity,and inclusion initiat

8、ives play in strengthening culture;and the ways that mindset influences cultural outcomes.RESEARCH REPORT|3Quiet quitting(47%)and the great resignation(41%)are the workplace movements most commonly reported to have a negative impact on company culture in the next two years.Both are symptoms of cultu

9、re issues.In this report,well delve into how organizational change starts with individuals and mindset change.IntroductionTheres no denying that the landscape of our work environments is changing.In the last few years,weve seen trends like the great resignation,quiet quitting,and diversity,equity an

10、d inclusion influence organizational culture and performance both positively and negatively.As leadership teams navigate workforce changes,they must consider the cost of disengaged employees and how much it costs the organization.What is the process to influence change,how do you develop and execute

11、 a plan,and how do you measure progress?Yes,the workforce is quickly changing and the more we understand the changes,the better we can develop a strategy to meet the current environment.To get a better handle on the evolving world of work,we surveyed over 300 decision-makers and strategic leaders an

12、d asked them what culture means to them,where their organization stands on certain elements of culture,and what their organizations are doing to improve it.The modern workforce craves respect,understanding,and humanity in their workplace and will no longer tolerate unsatisfactory company cultures.In

13、 fact,88%of decision-makers and leaders we surveyed expect the importance of company culture to increase significantly in the coming year.This progression of the modern workplace is forcing organizations to look at culture from a different perspective.Over half of decision-makers and leaders(52%)agr

14、ee that evolving a strategy to meet the changing dynamics of the modern workforce is the top challenge when it comes to improving culture.So,in the age of quiet quitting and the great resignation,how are organizations meeting the needs of their employees in a genuine and effective way to create a cu

15、lture that is a catalyst for improvement and growth?The data we uncovered paints a picture of workplaces that recognize the importance of improving their culture,but many of their strategies are missing the mark by failing to address one key component:Mindset.RESEARCH REPORT|4INSIGHT 1Best-in-class

16、cultures improve the bottom line in a big way.Organizations with“very successful,”or best-in-class cultures reported more significant increases in revenue last year than those with less successful cultures.INSIGHT 2Leadership development is key to improving culture.52%of those surveyed say that lead

17、ership development has the greatest impact on improving an organizations culture.Successful leadership development initiatives are also associated with a more positive outlook on business success,increases in revenue,and feelings of contributing meaningful work that makes an impact.INSIGHT 3Initiati

18、ves that prioritize mindset make a greater impact on improving culture and performance.97%of decision-makers and leaders surveyed agree that the collective mindset of an organization directly impacts that organizations culture.When mindset is considered in DEI,performance management,and leadership d

19、evelopment initiatives,organizations report more overall success in company culture,employee acquisition,retention,satisfaction,and productivity.INSIGHT 4An alarming need for prioritizing initiatives that contribute to better company culture.Organizations that prioritize diversity,equity,and inclusi

20、on(DEI),leadership development,and performance management initiatives experience a myriad of benefits including higher retention,more significant increases in revenue,and more positive outlooks on success.The issue is,71%of those surveyed work for companies that do NOT prioritize DEI,leadership deve

21、lopment,and performance management initiatives.Key insightsRESEARCH REPORT|5What does a high-performing culture look like?1.0RESEARCH REPORT|6What does a high-performing culture look like?Benefits of improving company cultureOrganizations are growing increasingly aware of the importance of company c

22、ulture in creating high-performing work environments.In fact,99%of executives we surveyed agree that culture is considered important when it comes to achieving business objectives like revenue and growth.Nearly half(46%)of all decision-makers and leaders surveyed report that culture drives improveme

23、nts in areas critical to growth such as employee productivity,retention,and engagement as culture improves.Prioritizing performance management improves productivity.Those surveyed who report that performance management initiatives are a high priority at their organization are significantly more like

24、ly than all others to describe the employee productivity at their organization as very successful,or best-in-class.(70%vs 30%)Respect gives way to more successful retention.42%of those surveyed say that employees at their organization feel genuine respect for each other.This group is over 50%more li

25、kely to report best-in-class success when it comes to employee retention at their organization compared to those who do not work for organizations where employees feel respected.(59%vs 39%)Increased productivityImproved retentionImproved employee engagementIncreased feelings of inclusion,belonging,&

26、psychological safetyIncreased revenueImproved communication&collaborationImproved employee accountabilityImproved situational awarenessDecrease in negative conflictsWhat are the greatest benefits of improving the culture of an organization?RESEARCH REPORT|7Improving culture within an organization do

27、esnt happen overnight.It requires diligence and consistency,listening and thoughtful consideration,and strategic execution.Organizational leaders and decision-makers note that developing a strategy to meet the demands of a changing workforce is a top challenge,followed closely by staying consistent

28、with their approach and finding adequate resources to execute.What are the top challenges of improving company culture?Evolving the strategy to meet changes in the workforceFollow-up/staying consistentResources needed to implementEmployee adoptionCreating a strategyTracking performance metricsBuy-in

29、 from leadership52%46%38%38%35%33%26%Over three-quarters of decision-makers and strategic leaders report that short-term goals(revenue,profit-margin,reduction of expenses)hinder long-term strategies to improve company culture.77%90%of executives say that the importance of company culture is increasi

30、ng in todays market,yet more than a quarter(26%)of all decision-makers say that they struggle to get buy-in from the rest of their leadership teams.Executive perspective1.1 What does a high-performing culture look like?Challenges of improving company cultureRESEARCH REPORT|8Organizations with best-i

31、n-class cultures report that employee development(75%)and leadership development(55%)initiatives are most impactful in improving an organizations culture.This is reflected in the data that shows that this group prioritizes initiatives like performance management,leadership development,as well as div

32、ersity,equity,and inclusion(DEI)a great deal more than those with less successful cultures.A key differentiator.What sets best-in-class cultures apart the most is focusing on employee mindset,rather than just behavior,when it comes to these initiatives.%of companies that prioritize each area a great

33、 deal.(Best-in-class culture vs.all others)58%of decision-makers and leaders surveyed describe their organizations culture as“very successful.”Throughout this report,you will see references to this group as they give us particularly helpful insight into what best-in-class cultures are doing differen

34、tly,and what they are experiencing as a result.%of companies that focus on employee mindset in each area.(Best-in-class culture vs.all others)Best-in-classcultures1.2 What does a high-performing culture look like?A snapshot of a best-in-class cultureRESEARCH REPORT|9Best-in-class cultures report sig

35、nificant revenue increases in the past year.Companies with successful cultures are 5 times more likely to see significant revenue increases in the past year than those with less successful cultures.(47%vs 9%)Best-in-class cultures have a more positive outlook on the success of their business in the

36、coming year.Companies with best-in-class cultures are 3.5 times more likely to have extremely positive outlooks on business success than those with less successful cultures.(75%vs 21%)The result:More revenue,better outlook.RESEARCH REPORT|10The impact of these initiatives on successThe 29%of organiz

37、ations that prioritize DEI,leadership development,and performance management initiatives,report better results in key categories.84%of this group has an extremely positive outlook on the success of their business.53%of this group has experienced a significant increase in revenue in the last year.34%

38、of this group has an employee retention rate of 80%or higher.There is clear evidence that placing a high priority on DEI,leadership development,and performance management initiatives improves organizational culture and,as a result,organizations bottom lines.However,71%of organizations do not priorit

39、ize any of these three initiatives as much as they could be.To what extent do you feel your organization prioritizes the following?A great dealSomewhatVery littleNot at allDiversity,equity&inclusion(DEI)Leadership developmentPerformance management55%34%8%2%49%35%14%2%54%32%11%3%Red flag:Failing to p

40、rioritize DEI,leadership development,and performance managementRESEARCH REPORT|11The impact of effective leadership 2.0RESEARCH REPORT|12Nearly half(48%)of decision-makers and leaders say that feeling valued is one of the most important things that contribute to their satisfaction in the workplace.T

41、he impact of effective leadershipLeadership development initiativesOver half(52%)of those surveyed say that leadership development has the greatest impact on improving an organizations culture.An effective leader makes employees feel valued and promotes employee collaboration,trust,engagement,and fe

42、elings of eagerness to improve.So what are organizations currently including in their strategies to improve the performance and capabilities of their leaders?The most commonly reported elements are leadership training,executive coaching,and strategic planning.Leadership trainingExecutive coachingStr

43、ategic planningSuccession planningMindsetOffsite retreatsNone of the aboveWhich of the following elements are part of your companys leadership development initiatives/programs?59%53%44%33%32%27%6%Only 32%of survey respondents report that their organizations focus on mindset in their leadership devel

44、opment programs,but our research shows that the organizations that focus on mindset are significantly more likely to have employees that feel they are doing meaningful work(76%vs 43%).RESEARCH REPORT|13Nearly half(49%)of all decision-makers and strategic leaders surveyed did not think that their pro

45、grams were a great success,what can organizations do to improve their odds of success?The most successful leadership development programs are significantly more likely to include executive coaching,leadership training,mindset,and succession planning than others.Measuring,tracking,and optimizing lead

46、ership development programs is also an indicator of success.Effective leadership development promotes:Employee engagement.Organizations with the most successful leadership development initiatives are 3X more likely than all others to have great success with employee engagement.(83%vs 28%)Employee co

47、nfidence.Those with the most successful leadership development programs are 73%more likely to feel that employees trust each other at their organizations.(44%vs 26%)Employee ambition.Those with the most successful leadership development programs are 63%more likely to feel that employees have an eage

48、rness to improve.(49%vs 30%)2.1 The impact of effective leadershipLeadership development successRESEARCH REPORT|14Employee engagement and team performance3.0RESEARCH REPORT|15Employee engagement&team performanceEmployees are interested in more than just salaryEmployees crave respect.51%of all decisi

49、on-makers and leaders surveyed say that feeling respected is one of the most important components of workplace satisfaction.Organizations with mindset-focused initiatives in their DEI,leadership development,and performance management programs are 73%more likely to report that employees feel genuine

50、respect for one another than those who do not consider employee mindset in these programs.(57%of those who focus on mindset say that employees feel genuine respect for each other vs 33%of those that do not focus on mindset).The elements that factor into a successful work environment vary greatly by

51、job level.Respondents who identified as executives and the C-suite report being most influenced by learning and career development when it comes to their satisfaction with their work environment.Senior leadership roles like SVPs and VPs place nearly as much weight on the relationships they have with

52、 colleagues as they do on salary.In addition to peer relationships,directors and managers say that a fulfilling set of job responsibilities is of top importance.The bottom line?Salary isnt everything when it comes to employee satisfaction.Which of the following elements are part of your companys lea

53、dership development initiatives/programs?ExecsVP/DirectorsManagersLearning&career development47%30%33%Salary41%55%55%Interesting job content36%43%35%Company mission33%30%26%Rewards&recognition33%29%36%Relationships with colleagues35%38%50%Company values41%26%31%RESEARCH REPORT|1660%of organizations

54、include professional development in their performance management programs.Time management and technical training are also commonly included in performance management strategies.The organizations with the most successful company cultures are significantly more likely to include professional developme

55、nt,business process,mindset,succession planning,and offsite/team-building activities in their performance management programs than others.Which of the following elements are part of your companys performance management initiatives/programs?Professional developmentTime managementTechnical trainingMin

56、dsetSuccession planningOffsite/team-building activitiesJob rotationsBusiness process67%51%51%46%46%28%46%39%39%13%37%24%30%17%23%25%Best-in-class culturesAll others3.1 Employee engagement and team performancePerformance management programsOrganizations with best-in-class cultures are 3X more likely

57、than others to focus on mindset in their performance management initiatives.Best-in-classculturesRESEARCH REPORT|1742%of executives surveyed report that tracking performance metrics is one of the most significant challenges to improving company culture.According to our research,tracking the performa

58、nce of initiatives such as employee engagement,retention,satisfaction,productivity,and leadership development is critical to a successful companyculture.In fact,respondents who describe their culture as best-in-class have measured,optimized,and tracked these initiatives for longer than others.%of or

59、ganizations who have been tracking each area for more than 5 years.Organizations that have been tracking their retention for over five years are almost 2X more likely to achieve over 80%retention rates compared to organizations that have been tracking for less time(34%vs 18%).Employee satisfactionLe

60、adership developmentEmployee engagementEmployee retentionEmployeeproductivityBest-in-classAll others53%39%41%43%41%44%53%54%56%57%3.2 Employee engagement and team performanceThe importance of tracking and measuring performanceRESEARCH REPORT|18The role of diversity,equity,and inclusion4.0RESEARCH RE

61、PORT|194.0 The role of diversity,equity,and inclusionWhat is included in DEI programs today?DEI programs rank at the top of the list of initiatives that have the greatest impact on improving an organizations culture with 53%of decision-makers and strategic leaders reporting so.But what do todays DEI

62、 programs actually look like and how can they improve?Cultural competency,gender/sexual diversity,and mindset are the most commonly reported elements included in current DEI programs.Only 30%of decision-makers and strategic leaders surveyed feel that employees at their organization seek to understan

63、d their impact on others,which is foundational for relationship building and creating an inclusive environment.Which of the following elements are part of your DEI initiatives/programs?Cultural competencyGender/sexual diversityMindsetUnconscious biasAnti-racismNone of the aboveThink differently to a

64、ct differently.Companies with very successful cultures are more than 2X more likely than those with less successful cultures to include mindset-focused initiatives in their DEI programs.(57%vs 23%)57%55%43%40%27%38%8%RESEARCH REPORT|20We provide training for all employeesWe provide training for lead

65、ersWe use a consultant to help shape policies and practicesWe have an in-house team that manages a holistic DEI strategyNone of the above61%55%51%30%6%61%of organizations invest in DEI training for all employees and another 55%invest in DEI training for leaders,but the organizations with best-in-cla

66、ss company cultures are significantly more likely to be investing in training for leaders.Which of the following are included in your investment in DEI?Companies with best-in-class cultures are 72%more likely to invest in training for leaders compared to all others.(67%vs 39%)4.1 The role of diversi

67、ty,equity,and inclusionWhere are organizations investing?Best-in-classculturesRESEARCH REPORT|21Effective DEI programs empower employees and can directly improve employee retention and engagement.Nearly two-thirds(63%)of organizations that prioritize DEI initiatives a great deal have retention rates

68、 of 60%or higher.This group that makes DEI a high priority is also significantly more likely to consider employee retention and employee engagement very successful at their organization.%who consider employee retention and employee engagement“very successful.”A link to revenue growth.Organizations t

69、hat place a high priority on DEI initiatives were more than 2X more likely to see significant increases in revenue last year compared to others.(42%vs 18%)4.2 The role of diversity,equity,and inclusionThe power of making DEI a priority.RESEARCH REPORT|2297%of decision-makers and strategic leaders ag

70、ree that the collective mindset of an organization directly improves that organizations culture but only 16%report that mindset is a part of their companys leadership development,team performance,and DEI initiatives.A collective mindset is your culture in action.In other words,the ways in which your

71、 company as a whole thinks and acts are a direct representation of your companys culture,and that significantly improves outcomes.But where does a collective mindset originate?The mindsets of the individuals that make up an organization are the greatest contributors to a collective mindset,and why p

72、eople are the greatest asset to an organizations success.Mindset drives behaviors.Behaviors dont change until a core mindset changes,which is why a focus on mindset should come first.The competitive advantage:MindsetRESEARCH REPORT|23A shift in mindset goes a long way.The 16%of respondents who work

73、for organizations that focus on mindset in each of their leadership development,performance management,and DEI initiatives see vastly better outcomes than those who dont focus on mindset.Those who work for organizations that focus on employee mindset in each of these initiatives.are more than 2x mor

74、e likely to have an extremely positive outlook on the success of their organization in the coming year.(76%vs 36%of those who work for organizations that dont focus on mindset in these initiatives).say the employees at their organization handle conflict more productively.They report 2.5x more effici

75、ent conflict resolution at their organization.(41%vs 17%)They are 81%more likely to report that their organization has employees who seek to understand their impact on others.(47%vs 26%)They are 2x more likely to report that their organization has employees who take responsibility for their role in

76、conflict.(45%vs 23%).report more successful and efficient collaboration at their organization.They are 53%more likely to report that their organization has employees who freely share information/resources that are helpful to others.(49%vs 32%)They are 13%more likely to report that their organization

77、 has teams that collaborate well with each other.(45%vs 40%).report more feelings of respect and value at their organization.They are 73%more likely to report that their organization has employees who trust each other.(45%vs 26%)They are 61%more likely to report that their organization has employees

78、 who are eager to improve.(53%vs 33%)They are more than 2x more likely to report that their organization has employees who feel they are doing meaningful work that makes a real impact.(84%vs 39%)They are 73%more likely to report that their organization has employees who feel genuine respect for each

79、 other.(57%vs 33%)RESEARCH REPORT|24Participants and methodologyAscend2 benchmarks the performance of business strategies and the tactics and technology that drives them.With a custom online questionnaire,we surveyed 302 strategic decision-makers and executive leadership,from organizations located i

80、n the United States with 500 or more employees operating in a variety of industries.The survey was fielded during the month of March,2023.MethodologyParticipantsJob Level C-Level/Executive 38%VP/SVP 14%Director 20%Manager 28%Job Role Strategic leadership 42%Talent management 17%Learning and developm

81、ent 11%Employee relations 19%Other 11%Length of Employment with Current Organization Less than one year 3%1-3 years 12%4-6 years 30%More than 6 years 55%RESEARCH REPORT|25About the research partnersThe Arbinger Institute helps leaders transform their cultures by enabling the shift in mindset that le

82、ads to exceptional results.Whether youre interested in leadership development,building a high-performing team,or transforming your entire organization,well show you how to create the mindset transformation that is the key to driving lasting change.Learn more about The Arbinger Institute.Companies pa

83、rtner with Ascend2 to create original research from survey conceptualization through report and content creation to media outreach.Ascend2 helps companies fuel marketing content,generate leads,and engage prospects to drive demand through the middle of the funnel.Learn more about Ascend2.RESEARCH REPORT|26