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Why culture is key to business success

What is culture and why is it so important for business performance? And as a leader, how do you go about creating a strong culture within your own organisation?

Addressing these questions is key to the success of any business, according to Martin Palethorpe, business development expert and founder of The Pragma Group.

Martin recently shared his insights on this issue, when he made a guest appearance on Radio America’s Be More. Achieve More programme. Hosted by Chris Cooper, the show isthe leading internet show for entrepreneurs and leaders in Europe and America.

“The reason a positive culture is so important,” explains Martin, “is that it can impact heavily on performance and employee engagement, which in turn can strongly correlate to a company’s financial results.

“A destructive culture can have a devastating and lasting impact, but get it right and develop a positive and responsible one and you will reap the benefits at every level for many years to come.”

Firms with engagement scores in the top quartile have been reported to average 12 per cent higher customer advocacy, 18 per cent higher productivity and 12 per cent higher profitability. The earnings per share growth rate of such organisations have also been found to be 2.6 times higher.

Martin added: “When you get your culture right, the benefits can be broad reaching – impacting on your employees, your business results and ultimately on your country’s economy.”

Chris Cooper, host of Be More. Achieve More, said: “So often when a business fails, has a PR disaster or gets into trouble during merger or acquisition it is put down to cultural failure. At worst, you see headlines such as ‘the culture was rotten to the core!’

“Great businesses build great cultures that deliver and attract great results. Fail to do so today and your failings may soon be plastered all over the internet and media. Not only this, to do business well we also need to understand and be sensitive to the cultures of different countries too.”

Martin was joined on Be More. Achieve More. by Phil Clothier, CEO of Barrett Values Centre (BVC). BVC is an organisation which has helped thousands of leaders all over the world to improve the performance of their organisations by improving the well-being of their employees.

This was posted in Bdaily's Members' News section by Martin Palethorpe .