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Just like a doctor checks vital signs to assess a patient’s health, company culture serves as a critical indicator of organizational well-being. When we examine it carefully, culture can reveal the hidden barriers between current performance and desired success. But how does a company actually measure and improve its cultural health? I recommend a two-step approach that includes both external alignment and internal operations.
The First Vital Sign: Leadership Alignment
The initial step involves a careful examination of goal alignment across leadership levels. This process starts with a fundamental question: Is there a common understanding of where the company is going? What is its North Star? What are the end-of-quarter or end-of-year goals? Most importantly, why does that matter—why did we pick those goals as a company?
These questions might seem basic, but their answers can reveal surprising disconnects. When leaders hold different visions of success or conflicting plans of how to achieve it, the ripple effects can cascade throughout the organization. If there’s not a core common understanding at the top, people in lower tiers can’t make the right decisions. This misalignment is sand in the gears of daily operations. It can slow decision-making and ultimately hamper innovation.
Diagnosing The Root Cause
Once we’ve assessed leadership alignment, we should shift the focus to considering whether the challenges stem from people, processes or technology. This is crucial because different root causes demand different solutions. Do we have the right kind of people but the wrong technology at the wrong time? Technology and process issues, while they can be complex, usually have clear fixes. People-related problems, on the other hand, require more nuanced approaches and longer-term solutions. Think of it as a car that keeps swerving off course. Is it because the steering is misaligned—a relatively simple technology fix—or because the driver needs more training and experience, which will require more time and sustained effort?
Building An Empowered Culture
This two-step approach of aligned leadership and smooth operations is rooted in a culture of empowerment, a system where people feel empowered to make the right kinds of decisions. Empowerment in turn comes from deep understanding—not just of company goals, but of market dynamics and customer needs.
When employees truly grasp their company’s position in the market and its relationship with customers, their decision-making transforms. If employees understand things like ideal customer profile (ICP) and product market fit (PMF), they will be able to make better-informed micro-level decisions.
Culture is an indicator that people are empowered to make those decisions, instead of constantly seeking approval or following outdated playbooks. When employees understand how their decisions impact other departments and overall company goals, they make choices that benefit the entire organization. They also become more likely to spot opportunities for innovation and improvement that might be missed in a more siloed structure.
For example, Microsoft’s integration of security metrics into leadership performance reviews shows how structural changes can drive cultural empowerment. Instead of just declaring “security is important,” they established it as a core business priority, not just an IT department concern. This sent a clear message throughout the organization that security decisions matter at every level.
The Path Forward
Creating a healthy company culture requires constant attention and adjustment. It’s not just a one-time effort. But the rewards of getting it right are high. Organizations with strong and aligned cultures can innovate faster and adapt more easily to market changes.
The key lies in regular cultural health checks and clear communication of goals and expectations. It also means companies need to commit to empowering their employees with the knowledge they need to make good decisions. When these elements come together, the result is an environment where innovation thrives.
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