By Charlie Coode, Founder of Culture15

A thriving company culture is not just a feel-good factor, but a critical driver of performance, innovation and success. Nevertheless, whilst most organisations are aware of culture’s vital importance, many still only rely on engagement questionnaires to gauge their current cultural performance, leaving them misinformed and falling behind the competition. Indeed, the cultivation of high-performing teams can only be achieved by measuring behaviours and leveraging tangible, objective cultural data, used to refine, enhance and continually assess.

The benefits of strong company culture

According to a Denison Consulting study, organisations with a strong company culture benefit from 72% higher employee engagement, with mission-driven companies also experiencing 40% higher retention levels, according to Deloitte. Furthermore, in its “Culture vs. engagement strategy” paper, the consulting company confirms that this engagement then translates to higher company loyalty and productivity, allowing culture-conscious companies to outperform the competition by 147%.

The new gold standard

In order to achieve this mission-driven status, however, companies must become much more intentional with their cultural data. In other words, they have to move discussions beyond gut feelings and anecdotal evidence.

Purpose-driven cultural data offers a clear, unbiased view of the current state of culture as it is now – a crucial move when it comes to understanding strengths and pinpointing areas for improvement. Then – and only then – can this be measured against the target culture, to ensure the right actions are being taken to achieve the goals that will build a team poised to lead the market.

Critical steps for shaping high-performance teams

Leaders must begin by collating appropriate data from various sources to obtain a comprehensive picture of where they are. This may include anything from turnover rates to the outcomes of exit interviews and performance reviews, for instance – provided that it can be translated into quantifiable metrics. Using the data gathered from online employee surveys, for example, software can analyse common linguistic themes to give measured insight into employee views, without results being clouded by personal feeling.

Then, it’s time to ensure you’ve aligned your desired culture with where you want the company to be. It’s imperative that any goals are completely consistent with your mission and strategic business goals, with all leadership team members and employees alike engaging in the process to ensure buy-in.

SMART criteria (specific, measurable, achievable, relevant and time-bound goals) tend to work best, as it’s much easier to evaluate success. Take for example a leading tech firm that uses data to reveal high turnover rates among junior development staff. Further analysis might identify a lack of mentorship and growth opportunities as the root cause, allowing the company to effectively address this through targeted mentorship and training programmes.

Relying on insights to bridge any gaps

With a clear picture of where you are and where you want to be, data-driven insights soon translate into achievable actions for bridging the gap and effectively managing culture. The more targeted interventions that can be implemented, the greater the impression the resulting culture will make, particularly when the impact of these actions is tracked over time, using the same objective metrics used in your initial assessment.

Shaping high-performance teams

The resulting culture-driven transformations will have a profound effect on team dynamics, as well as performance. For instance, by using data to identify and address issues surrounding poor communication and collaboration, companies can foster a more cohesive and effective team environment.

Take Google’s Project Aristotle, for example. Using data analytics, leaders were able to determine the key factors that shaped high-performing teams. This included things like dependability, structure and clarity, a sense of work-based meaning, project impact and a sense of psychological safety. By focussing on these areas, Google was then able to enhance team performance across the board.

With Google now one of the world’s top companies to work for, this shows how a strong, data-informed approach to company culture directly contributes to employee productivity and satisfaction.

Making it a continuous process

Of course, cultivating a high-performing team through measuring and managing company culture is not a one-time effort but an ongoing process. Regularly collecting and analysing cultural markers ensures that organisations remain aligned with their goals, with the agility to swiftly address any unexpected issues. In fact, this continuous feedback loop not only enables companies to innovate, adapt and evolve, but more importantly, allows them to maintain a dynamic and resilient workforce.

The power of culture

By moving beyond subjective assessments to focus on measurable insights, organisations can create a culture that not only enhances employee engagement and retention but also drives innovation, imagination and productivity. The journey to obtaining a thriving company culture that is aligned with an organisations strategy is continuous, requiring commitment, transparency and ongoing strategy. Yet, this willingness to adapt ultimately translates into a motivated, cohesive, high-performing workforce, making all the measurements well worth the effort.