As a small business owner, you need to pay attention to a lot of details. Of course, the most important detail you need to monitor is revenue and profits.
It makes sense. Finances are the lifeblood of a business. If you’re not turning a profit, then you’re not doing well enough.
But the mistake some small business owners make is focusing too much on the bottom line. They cut costs wherever they can and they do their best to maximize resources. But in their efforts to do this, even if well-intentioned, they are overlooking a very important piece of the puzzle – one that can deliver a strong return on investment.
A strong company culture can really make the difference between a company barely scraping by and one that is thriving.
What is a strong company culture?
The culture in your organization determines the values and beliefs under which your team operates.
It influences behavior among coworkers and respect that they have for each other – and for the company. A strong culture provides a structure for employees to manage their teams and recruit top-level talent in a positive atmosphere.
When clearly defined, company culture drives a team’s ability to positively impact the bottom line.
Workers in a strong company culture are engaged
Positive culture in a company is going to breed high engagement among most workers. One study even reported that engaged employees outperform disengaged employees by 202%.
What would your revenues look like if your team improved their performance by 202%?
Even a 5-point increase in engagement can deliver a bump in revenue for the company.
Why is this? When a culture is defined, a positive working atmosphere develops. This creates a common purpose among employees. They believe that their work impacts the company, and because they are more engaged with the company, they are motivated to do better.
The level of work increases and outcomes grow more positive as everyone is connected.
Strong culture = lots of trust
It isn’t just “nice” to have a team that trusts you – it is a critical component to the success of the company!
Say you work on a team that doesn’t believe the manager is working very hard. They feel as though management doesn’t support their efforts or even appreciate them. They might even be suspicious that management is taking advantage of them for their own gain.
How productive do you think that team will be? If you fall in with them and believe the same thing, would you be particularly motivated to work hard and produce results?
Probably not. You’d likely cut corners and do the bare minimum just to get the job done without getting fired. That’s not a recipe for a strong revenue stream.
Trust is key. If you trust management is working in your best interests, you’re going to be more engaged with the process – and the results will reflect that.
Teams with a strong culture are more disciplined
Productive teams aren’t focused on the results – they are focused on the habits that produce those results.
You can’t grow your business unless the team consistently works hard to hold themselves accountable and disciplines themselves to stay on track when working towards their goals.
A strong company culture can do that by creating a unified mission, vision, and principles that guide the team day in and day out. If you prioritize building that culture, the workers will feel prioritized also, and that will breed the mindset and behaviors necessary for profits.
The best way to strengthen your company culture
How do you go about creating that culture?
The first truth about culture is that it starts at the top. You can’t expect your team to work hard and stay focused if you aren’t doing the same. Make sure that you are following your own advice and working with the same level of effort and focus that you expect out of your team.
The second truth is that you need to demonstrate that your workers’ efforts are noticed and appreciated. A great employee rewards program from COGZ Recognition Rewards can do just that.
With an easy-to-implement system like COGZ, you can create ways to make your employees enjoy rewards for their efforts as they increase their rate of productivity. And when you do that, you will see great results on your bottom line.