by Jo Geraghty and Derek Bishop

The importance of organisational culture

Why should an organisation worry about its culture? After all, if biscuits are made or loans provided, then surely that is all that matters? That’s myth number four waiting to be busted. The truth is that organisational culture not only matters, it is increasingly becoming the prime differentiator between organisational success and failure. It is why a customer chooses one business over another, why investors will lend and why suppliers will offer preferential terms. Company culture is the reason why some businesses survived the recession while others did not, and the underlying culture is the reason why some businesses are ready to meet the innovation challenges of the 21st century while others will fall by the wayside.

To learn more, look at a few key areas in which the culture makes the difference:

In the sections above, we see how organisational culture affects every process and every action within a company. The culture

  • Determines how a company is run, its ethics and its governance
  • Underpins success or otherwise
  • Determines levels of customer care and satisfaction
  • Influences employee engagement levels
  • Affects brand perception and likely investor interest.

Now that we have an understanding of why culture is important, we can start to look at the drivers for culture change and then move on into the change process itself.