When it comes to business results, leaders often focus on the tangible–strategies, products, operational efficiencies, and profit margins. What about the intangibles, though? What about culture? Leaders often see culture as an undefined, soft element within a company. Many leaders think that culture is about morale-boosting events, ping pong tables or perks. Culture is more than a nice to have. It’s what drives results.
Culture: Thinking and acting for results
Culture is often misunderstood as being nebulous or unmeasurable. Culture Partners defines culture as the way people act and think to achieve desired results. This definition transforms the discussion from abstract to actionable. Businesses can achieve transformative results by aligning employee behavior and thinking with strategic goals.
How do we know that this works? This is not just a theory. It’s supported by decades of real-world research.
Data Speaks: Strong Culture Multiplies Revenue Growth
We conducted a three-year study in partnership with Stanford University. Each organization had between 100,000 and 355,000 employees. The study was carried out from the beginning of the COVID-19 Pandemic until 2023. The results were impressive. The findings were compelling.
Companies with weak cultures may still be able to grow, but the growth will be much smaller. A strong culture is not just a competitive edge; it can be the difference between incremental improvements and transformational successes.
Why Perks Don’t Cut It
Let’s talk about a common mistake: confusing perks and culture. While nap pods, catered meals, and happy hours after work are all fun, they don’t form the basis of a strong company culture. These perks, while fun, are at best enhancements, icing on a cake. These perks don’t change the way people think or act. They don’t align business results with employees.
A CEO, for example, mandated “nap times” during COVID-19 when he read about the benefits that sleep provides. This initiative, while well-intentioned and with good intentions, did not produce the desired results. It didn’t address fundamental beliefs, actions or alignment to organizational goals. Culture must go beyond surface-level benefits to truly impact outcomes.
The Results Pyramid – A Framework for Culture Transformation
Our work is driven by a framework called the Results Pyramid. It’s an instrument that helps organizations align culture with outcomes. How it works is as follows:
- Results are the foundation of every business. Results are the ultimate goal, whether it is increasing revenue, improving satisfaction with customers, or meeting operational KPIs.
- Actions : In order to achieve results, individuals must take specific action, such as adopting new technologies, restructuring teams or launching strategic initiative.
- Beliefs: beliefs drive actions. Employees who feel valued and trusted by their leaders, believe in the organization’s mission, are more likely to align their actions with its goals.
- Experiences shape beliefs. Every interaction, whether it’s in a team meeting or through a manager’s feedback, or even a story told in a newsletter, creates an experience which influences beliefs.
This framework makes sure that culture isn’t just a vague idea, but rather a structured way to achieve results.
Real-World Impact: Florida Power & Light
Florida Power & Light’s (FPL) case study is one of the most inspiring. Michael Fowler worked with us, the former CIO of the company, to integrate the Results Pyramid in their operations. Fowler was looking for more. FPL had already been a highly-performing company, but Fowler wanted to do even better. Fowler believed that aligning IT teams and business units around shared beliefs and action could unlock potential.
Fowler started by defining success. FPL’s definition of success was to provide a “100% effortless experience” for employees and customers. The company’s culture was shaped by this aspirational target. The company adopted shared beliefs, such as “delivering simple” and “valuing the shared outcomes”. These beliefs were not just slogans; they were incorporated into all of the company’s decisions and actions.
What are the results? The results? A project that would have previously taken six months to complete was completed in half the time thanks to this shift in culture.
Middle managers: the secret to sustained change
Middle managers are often the key to any successful cultural transformation. Middle managers are often at the core of any organizational change. Middle managers at FPL were not passive recipients, but active participants in the new culture. They defined the desired actions and beliefs, and they became culture champions.
By engaging middle managers early on and giving them the power to lead, FPL made sure that the cultural change was not only top-down. It was embedded throughout the entire organization.
Measuring culture: Transforming the intangible into tangible
We are often asked: How can you measure something so intangible as Culture? Alignment is the answer. Culture is defined by how people act and think to achieve results. It becomes quantifiable through the outcomes that it drives.
We at Culture Partners use tools such as the Results Pyramid, and we partner with organizations such as the ROI Institute in order to isolate the impact cultural initiatives have on businesses. In a pilot program for a client, we compared the revenue growth of stores that made cultural changes to those that did not. The data showed that the participating stores performed significantly better.
We also ask employees to quantify the improvement in their performance that they attribute to culture initiatives. We calculate conservative estimates by combining self-reported information with confidence ratings. These methods offer actionable, credible insights into the impact of culture on business outcomes.
From Belief to Action: Creating Intentional Experiences
Cultural transformation begins with experiences that influence beliefs. These experiences do not have to be expensive or elaborate. Simple but impactful practices such as storytelling, feedback, and recognition can make a profound change.
One organization, for example, incorporated storytelling into their daily routines. The teams began their meetings by telling stories that showed how their work was connected to the mission of the company. This simple exercise reinforced shared beliefs, and helped align teams around a common goal.
Another client redesigned its recognition program in order to tie individual contributions to organizational objectives. Managers gave specific feedback based on cultural beliefs and strategic outcomes, instead of generic praise such as “great job.” It allowed employees to see how their actions directly affected the success of the company.
Aligning Purpose and Strategy with Culture
We introduce to our clients the Culture Equation. Purpose + strategy powered by Culture = results. This simple but powerful formula aligns all aspects of an organization. The purpose is the “why”, the strategy is the “how” and the culture is how people act and think to implement the strategy and achieve the purpose.
The performance of organizations that align these elements improves dramatically. According to our research, companies that have a purpose, strategy and culture that are aligned achieve three times more results than those who do not.
