High-Performance Cultures: Fostering Excellence

What is the difference between a positive corporate culture with high employee satisfaction and a high-performance culture? Well, basically it's the difference between a Toyota Camry and a McLaren sports car.

Both will reliably get you to your destination. A Camry is a tough, proven car that you'll see on the road again and again - there's nothing wrong with that - and is superior to most basic cars. But a McLaren is unmatched for speed and performance; he is in a different league and would dominate in a head-to-head race.

A positive company culture with a healthy work environment is like a Toyota Camry: good, solid, reliable, and gets you where you want to go. But high-performing company cultures are like McLarens: They are rarer because they are harder to build and sustain. But if you want to be so far ahead of the competition that it's not even a race anymore, then this is the car you need.

Fortunately, building a high-performance culture is much easier than building a McLaren. The key is understanding what makes these great organizations tick and what sets them apart from all the Camrys out there on the road.

What is a high performance culture?

A high-performance culture is an environment in which employees are enabled and empowered to support organizational goals and create maximum value. This means giving your teams the tools, technology, processes and environment they need to innovate, collaborate, listen, learn and lead so your business can thrive.

High-performing company cultures are ambitious, responsible and autonomous, and these characteristics enable employees at all levels and in all departments to do highly engaging work every day. Sounds amazing, right?

These companies achieve better and faster results than companies without this type of culture. Recent research from Bain found that companies with a high-performing culture achieve ten times (!) more revenue growth than companies without this type of culture. But this kind of profitable growth isn't the only benefit. High-performing companies also have better financial results, lower turnover, and more loyal customers, among many other benefits. Apple is a great example of this type of company, but they exist in every industry.

We've already talked about high-performing teams, and they are also very effective. But a team is just one part of a larger organization, and if they are limited or isolated to certain small areas, your company won't get the full benefit. Creating a comprehensive, high-performing company culture helps every team and employee contribute and thrive and is an incredible driver of growth, productivity and employee retention.

Key elements of a high-performing culture

The term “high performance culture” can seem a little vague. It's hard to assign a whole set of specific KPIs to measure directly, and cultures can vary greatly between companies in the same industry and region.

But these exciting, innovative cultures share some common qualities that every company can learn from.

High retention rates

High-performing workplaces are extremely attractive to employees, especially high performers. No wonder: talented and committed people want to work in a culture that supports this drive, surrounded by people who are also talented, and in a company that is highly committed. It's a lot more fun to drive a McLaren than a Camry if you're someone whose passion is cars.

These work cultures provide an engaging mission, an environment characterized by commitment and high performance, and a connection to the company's vision. Employees at all levels want to stay in these cultures because they love the environment, and this has benefits such as deeper institutional knowledge, lower recruiting costs and a higher return on talent spend.

Inspiring and motivating leadership

High-performing cultures are exciting and inspiring places to work - and that energy needs to come from your leadership team to set the tone. Leaders in such cultures have big, innovative visions for the company and are able to effectively communicate these visions to employees and inspire them. They embody the company's core values and continually think about how to move the company forward while enabling and empowering employees at all levels.

Committed employees with a lot of personal responsibility

While leaders set the tone and bring the energy, it is your employees who bring everything else to the table, making your culture a dynamic, innovative and inspiring culture. And micromanaging will not result in them getting the best out of themselves, especially high performers. Once your leadership has communicated your mission, goals, and company values, it's time to give your employees the freedom to do the work you hired them to do.

A lot of psychological safety and trust

There is plenty of data and research on the importance of psychological safety in the workplace - spoiler alert: it's very important! Combined with a high level of trust, this allows your employees to make and learn from mistakes, ask questions, give and receive feedback, and try to do things differently. These are all behaviors that lead to higher performing teams because they aren't afraid to shake things up instead of committing.

A truly inclusive and equal culture is also a crucial factor here. It's not possible to build a culture of safety and trust if your employees don't feel like they can fully contribute to their work, or if they don't feel like they're being treated fairly and with respect .

Clear goals and a clear path to get there

Setting goals that align with your mission is the first important task for your leadership team - the entire company needs to have a clear roadmap and endpoint to align with. But an even more important component of a high-performing culture is what comes next: assessing the obstacles to those goals and removing them so your teams can thrive.

Obstacles can take many different forms, such as: E.g., outdated systems and technology, burned-out managers, poor hiring practices, etc. - the list is long, and it may take some in-depth and dedicated research to uncover all of these obstacles. But once you identify and eliminate them, all your teams will progress, your employees will perform better, and their motivation will also increase.

A curious approach to learning and growing

Reviewing numbers and key performance indicators is necessary for every company. However, high-performing cultures are characterized by becoming curious beyond the numbers and figuring out how to build on their successes and learn from their failures.

This means dealing with the past without bias, but also with the question of how it will affect the future of your company and your employees. And by becoming curious about how your current company culture contributes to your results (for better or worse), you can find the path to a more effective, inspiring culture.

Open and honest feedback

High-performing cultures like to give high-quality feedback often - especially constructive negative feedback. This does not mean that they are overly critical or strict, as that is not good for morale or motivation.

Instead, they focus on giving employees the feedback they need to be their best selves at work. In most cases, this means they receive concrete and timely recognition for their hard work. But it also means taking the time to give them thoughtful, sensitive, and constructive criticism so they can learn, grow, and succeed.

Most managers find it difficult to give this type of feedback, but it means employees appreciate it even more - and the positive recognition feels more genuine and valuable.

The conclusion

High-performance cultures are incredibly powerful - and exciting. They are not easy to build, not least because they require the right leadership and commitment to coaching and empowering employees rather than micromanaging them. But they are a much faster and more fun way to achieve your goals. So if you're ready to drive a McLaren instead of a Camry, start with these building blocks for creating a high-performance culture.

Ready to drive your organization to new heights? Build a high-performance culture with IceHrm and lead the competition.