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Why measuring company culture matters—and how to do it

Why measuring company culture matters—and how to do it

Company culture plays a fundamental role in shaping the values, beliefs, and norms employees are surrounded by and adopt—which, in turn, drives employee conduct and behavior. Due to this crucial relationship, as well as the relationship between culture and business performance, it is vital for leaders to not only understand their organization’s state of culture, but also to work towards creating a strong culture that aligns values with the overall strategic goals of the organization. Organizations that work intentionally to do so encourage behaviors that will ultimately lead to company success and reduce risk. In fact, LRN research shows that organizations with strong, values-based cultures outperform by 40% across a range of business metrics—including growth, innovation, and employee retention. And employees in these organizations are 1.4x more likely to report any misconduct they observe. Beyond these benefits, organizations that proactively assess their culture of compliance also adhere to expectations of the US Department of Justice (DOJ) regulatory guidelines.

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