Defining Workplace Culture A positive workplace culture may be hard to define, yet the signs of a dysfunctional workplace culture are almost impossible to ignore. Take the following examples, for instance: The rumor mill, fueled by gossip and backbiting, runs overtime but no one brings issues directly to management. Board and staff focus inward on workplace issues while customers and the larger market are neglected. The staff shows intolerance toward coworkers and customers who don't "fit in." When staff does not like a management decision, they do an end run around management and get the board involved in the operations. The staff feels a sense of entitlement to time off and don't cooperate with each other to cover the schedule. Blaming is more prevalent than problem solving. Process is more important than outcome. The impact of these negative influences can go beyond an unpleasant work experience. They can create turnover, low productivity and even lost sales. And when a company is performing well financially, the stress caused by such negativity can keep the organization from achieving its full potential. The first step for management is to do an assessment of the current situation and identify what is not working. This assessment will serve as a benchmark for measuring the success of the organization's change efforts. If conducted properly, an employee survey can yield a statistical measure of employee morale, especially if backed up with confidential interviews to help interpret the survey scores. Also look at measurable factors such as staff turnover, worker's compensation claims, absenteeism, meeting attendance, productivity ratios (companywide and by department) and average wage. Compare these figures to those of other companies in your industry. In addition, review notes from exit interviews to get a picture of why employees leave. Armed with this information, management can then involve board members and staff in a structured discussion to identify what is counterproductive and discouraging about the company's workplace culture and what a more satisfying environment would look like. If some departments seem to function with higher productivity and morale than the rest of the organization, what is the secret of their success, and can it be adapted to other areas? Experts in organizational development say that transforming a company's culture requires a broad approach, addressing as many as possible of these elements: Mission and vision Goals and measures Policies and procedures Customs and norms Organizational structure Training Performance evaluations Reward systems Communications and ceremonies Let us review the above elements and consider these questions and statements and how they relate to your business: Mission and vision To achieve your goals, you need to know what they will look like once you achieve them. Many businesses have value statements to accompany the mission statements, which may mention the kind of workplace the company intends to provide its employees. Rarely do these statements mention what the company expects back from employees. Policy handbooks can lay out expectations such as direct communications about problems, putting customers first and cooperating with coworkers. Unfortunately such handbooks are rarely living, breathing documents used by management and staff for guidance. A mission statement for the workplace can both outline the vision of what you are working toward and launch the campaign to transform workplace culture. Goals and measures How will you know if you have realized your vision? The goals you set depend on the problems you are addressing. For example, a company with a high percentage of part-time staff, working few hours per week, poorly paid with no benefits, would measure success in transforming the culture by arriving at a smaller number of employees working the same hours, cross-trained and covering absences for each other, earning a higher average wage and achieving higher sales per labor hour, with lower turnover. Policies and procedures To achieve goals, you need policies that provide guidance to supervisors and staff in day-to-day decisions. Maybe this is a good time to overhaul your policy handbook. Pay attention to personnel policies covering time off, benefits, evaluations, pay increases, disciplinary action and grievances, and store policies covering customer service, safety and security, with an eye toward how these policies reinforce the vision for a transformed culture. Customs and norms Many companies have workplace norms that are nowhere written as policy yet hold force in practice. These need to be explicitly addressed to be sure they are not working against the culture you want. For instance, are better performers rewarded with their preferred hours in scheduling? Is it acceptable to wear T-shirts and buttons with slogans promoting some causes but not others? Is poor performance tolerated for old-timers but not for newer staff? Are managers scheduled to work 40 hours but expected to work 50? Organizational structure The roles of board and management, the lines of accountability, the authority to make different types of decisions - all these might need clarification. Who serves on the management team and what is that group's purpose? Should there be assistant managers in some departments? Or should departments be run by self-directed work teams? Should there be a manager present at all times? Should grievances be handled by a committee of peers rather than a committee of the board? Training If people have new roles and new expectations, they will need new skills. Do managers need training in teambuilding, coaching, conducting performance evaluations and pay reviews? Are some jobs the "ladders" to others, and if so, can people get training to be eligible for desired jobs? Do work teams need help with group problem-solving and conflict resolution? Cross-training can be a major driver in changing workplace culture, fostering both a sense of personal responsibility for the company overall and support for coworkers, having "walked a mile in their shoes." Performance evaluations If an expectation is really important, it should be brought up in the performance review and compared to some observable standard. Evaluations are one of management's potentially most effective tools to give feedback and set goals for improvement in order to help people align their performance with the vision for a new, healthy workplace culture. For example, evaluations can assess style of communication or flexibility in helping out co-workers, not to mention the many facets of customer service. Reward system This is the most powerful element involved in transforming culture, because people will continue to do what they get positive reinforcement for doing. Not all rewards are monetary (but a company pay structure sends a strong message). Are pay increases based on individual performance? Seniority? Cost of living? The company's financial status? Does increased pay go hand-in-hand with increased responsibility? Is a bonus at the end of the calendar year seen as a "holiday bonus," given out at the discretion of the owner? Or is it seen as profit-sharing earned by the staff's hard work? Who gets promoted to department manager positions? Do you look beyond buying expertise to the qualifications that will help build the workplace culture you want? Training itself can be an effective reward. Communications To implement cultural change, you may need to vary the channels of communication to reinforce the vision and to get feedback on progress. Studies show that employees' preferred method of communication is individual, face-to-face meetings with their supervisor, particularly for important or sensitive subjects. Team meetings could be enlivened by designating a task force to design and lead meetings around themes of greatest interest to the group. A team newsletter using humor and graphics can get attention. Ceremonies The occasions the company celebrates say a lot about its organizational values. Do you make a big deal about new people passing their trial period or staff getting promoted? Or do you only have parties for departing employees? When departments meet goals or make dramatic improvements, does the rest of the staff hear about it? Are employees expected to attend membership events? These can be great occasions to spotlight staff achievements and hand out awards. Companies with profit-sharing programs find that these rewards become more meaningful when checks are handed out individually, accompanied by a thank you and a handshake, rather than simply picked up in a pay envelope. Woven together, all of the above elements make up organizational culture. By addressing as many as possible, company leaders can make a difference by transforming workplace cultures into happy, healthy, productive places to work.