Culture is where innovation goes to either thrive or shrivel. When we accept that culture, business, and financial decisions in our educational institutions have implications beyond the campus we create the foundation for root problems in the economy to be addressed.
The Oxford Economics report, "Return on Culture: Proving the connection between culture and profit" showed that 76% of executives say their organization has a defined value system that is understood and well communicated BUT only 31% of employees believe this to be true.
THIS IS A MAJOR PROBLEM...
...and one that we seek to solve using our culture analytics tools, but also has roots in other areas.
Culture of an organization inevitably threads through the members of that organization and spreads through various areas of that member's life. We see this reliably in our own data where 63% of those we polled said that they felt the culture of their workplace spread into their life outside of work. This is where educational institution culture and values begin to impact our economy first.
Let's make the connection with a couple quick hitting data points:
*Not coincidentally* 67% of students/staff polled at colleges & universities said they felt the culture of their school spread into their life outside school.
23% of students/staff polled said the institution was well connected to it's values.
9% of students/staff polled knew what the values of their institution were.
The interesting piece is that we found that creation of organizational values had been highly invested in across the board. Whether it was for a classroom or a board room, schools and businesses alike had spent a lot of time crafting their values to be specific to their populations. This makes it all the more shocking that alignment and implementation of these values is so...well...undervalued.
Later in the same report, Oxford Economics found the following:
Companies with a "healthy" culture were 1.5x more likely to report average revenue growth over 15% for the past three years.
Public companies with a "healthy" culture were 2.5x more likely to report significant stock price increases over the past year.
To further support the value of culture in the workplace, their research also showed that employees who describe their company culture as "healthy" are:
1.7x more likely to say their team collaborates effectively.
1.3x more likely to say their company effectively wins repeat business.
2.4x more likely to say they are unlikely to leave their job in the next year.
Putting It All Together
So the realities of culture being important in order to be profitable are clear, and the gap between current state of many workplaces and where they could be with more alignment and tracking is even more clear.
Educational institutions and businesses both need to deliver high levels of student satisfaction, engagement, innovation, collaboration, inclusivity, and more in order to achieve their key performance indicators.
If we model unhealthy culture for staff and students in the educational setting, we are setting ourselves up to see unhealthy culture in the workplaces that those students eventually operate in.
When unhealthy culture spreads through schools, and eventually the workplace, it has direct impact on profits of those businesses and the economy as a whole.
In Part 3 of this article, we will connect solutions that start in the education system and are build on in the workplace in order to thread healthy culture throughout. In addition, we will discuss how creativity in curriculum design can lead to more innovative culture and a supercharged economic growth.
Stay tuned for Part 3 next week!
Boost Innovation's culture analytics that are used in our work such as The GRW Project, use value alignment and healthy culture actively to enhance group performance in the pursuit of better performance on key performance indicators.
This article references statistics from Oxford Economics',"Return on Culture: Proving the connection between culture and profit" , which is available at https://www.oxfordeconomics.com/