In Part 1 of this series, I postulated a formula for some of the “known” elements. The formula suggests that each of this factors can contribute to the success – or failure – of a retention strategy. Successful Retention = f (Objective Expectations, Compensation, Training, Recognition, Feedback, Organizational Culture, and…) The last identified part of the formula is Organizational Culture. And it could easily be the most important as organizational culture has been identified by significant research as a “retention killer.”
Understood And MisunderstoodOrganizational Culture has steadily grown in awareness of its importance in recent years. Over fifteen years ago, leadership guru John Kotter recognized some key factors about culture:
- Organizational culture can have a significant impact on a firm’s long-term economic performance.
- Organizational culture will probably be an even more important factor in determining the success or failure of organizations in the next decade.
- Organizational cultures that inhibit long-term financial performance are not rare; they develop easily, even in firms that are full of reasonable and intelligent people.
- Although difficult to change, organizational cultures can be made more performance-enhancing.