Culture Transformation is one of our biggest business buzzwords in recent time. But what does it really mean for business, and why is everyone talking about it?
At heart, Corporate culture is the collection of values, visions, missions, and day-to-day aspects of communication and operational goals that create the atmosphere that permeates and determines how employees work in their organization.
According to the Barrett Values Centre, “Vibrant cultures have high levels of performance because they create internal cohesion, attract talented people, and inspire employees to go the extra mile.”
Without a company culture that promotes the behavior’s and actions of Operational Excellence and Continuous improvement, an Operational Excellence Program is unable to embed itself in the long-term across any organization.
#1 Your supply chain and processes are getting more complex
The world has changed in the last 2 decades, and the use of email, internet and social media means that it’s hard for businesses not to be confronted with globalization. This is increasing competition, pushing businesses to expand portfolios, and ultimately forcing them to design increasingly complex manufacturing processes and supply chains.
Alongside this, the rise in intervention from Government measures and regulations is causing a requirement of compliance across the board. In a more complex environment, standard best practices are more and more likely to give way to high consequence/low probability events. Mistakes mean more now than ever before, and rising complexity means processes, that are no longer simply linear, are harder to resolve. Creating a culture of Operational Excellence allows employees to prevent or immediately resolve issues, before they hit the next stage of the process.
#2 Nobody benefits from a high employee turnover.
It can cost thousands of dollars to train and recruit new employees each year, so naturally keeping your current employees happy makes solid business sense. A healthy culture is proven to increase employee satisfaction and happiness. This allows employees can see themselves as an asset rather than a liability, leading to increased morale, improved productivity and more — all of which, clearly, have a positive impact on profit and revenue creation.
“If your employees have faith in you, it’s far easier to put your faith in them”
#3 Make knowledge-sharing a natural endeavor within the business.
When Employees feel valued, they are not afraid to share their knowledge and skills with other members of the team. Instead of isolating themselves and their skills by trying to remain a ‘unique asset’, they are encouraged to progress, and invest in their own team for the good of the business as a whole.
#4 Once you embed a culture of Operational Excellence, your employees will sustain it.
If your employees have faith in you, it’s far easier to put your faith in them. As complex and time consuming as it may be to implement a long-lasting culture of Operational Excellence to begin with, positive habits and problem-solving attitudes will be far harder to change. As mentioned in #3, employees with a positive company culture will pass these behavior’s on to their more junior staff, cultivating and enhancing the culture.
#5 It feels good to lead the way.
A HRO, or High Reliability Organization, is an organization that has a remarkably low number of mishaps consistently over a sustained period of time while performing highly complex and inherently hazardous tasks. HROs are thought leaders in their industry, and lead by example as trailblazers for aspiring organizations.
However, while many leaders are waking up to the fact that transforming their organization’s culture to that of an HRO may be their greatest lever for improving safety, reliability and profitability, they don’t know where to start or what the process looks like to create the desired culture.
So, you’ve got a few reasons to start prioritizing a sustainable culture of operational excellence in your business ASAP. But how, we hear you cry! Luckily, we’ve got just the thing with one of our favorite white papers, courtesy of Wilson Perumal & Company. Take a look below to grab a copy of our #1 most downloaded white paper on Insights, ‘Creating a Culture of Operational Discipline that leads to Operational Excellence‘ – if you don’t have it already.