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Performance and Talent Management

Building Strong Cultures in Times of Volatility: Strategies for Effective Leadership

December 22, 2022

Developing a strong company culture requires time, according to a McKinsey study. Although it may seem cliché, this vital aspect is frequently overlooked, with the misconception that great teams are formed simply by working together. The study highlights leaders that invest time in creating a great environment and Culture that positively influences the organization’s growth and objectives.

Understanding Organizational Culture: A Key Factor in Attracting Talent
Organizational Culture plays a crucial role in attracting talented individuals to a company. It reflects the values, beliefs, and behaviors that guide how work gets done within the organization. When potential employees believe their values and personality align with the company’s Culture, they are more likely to feel a sense of belonging.

According to Carolyn Dewar, Senior Partner at McKinsey & Company, Culture starts with what people do and how they do it. While job functions may not differ significantly across industries, high-performance organizations distinguish themselves by their approach to work. The cumulative effect of what is done and how it is done ultimately determines the organization’s performance. Therefore, leaders play a fundamental role in cultivating a healthy and robust culture. They must invest time and effort to develop and maintain a culture that supports the organization’s goals and adapts to changes. In a constantly changing world, a high-performance culture can thrive on change and succeed even in challenging times.

Improving Organizational Culture for the Future of Work
The current times are uncertain and pose a significant challenge for leaders of teams and companies. To better face this period, high connectivity within the organization is essential. Here are four recommendations from Nala to improve organizational Culture:

  • Flexibility with the team: As the world of work continues to transform, leaders must adopt new systems and tools to manage teams considering remote, multicultural, and multigenerational factors.
  • Human connections: Demonstrate closeness through empathy by sharing good and bad experiences. When the leader develops positive connectivity, employees are more likely to connect.
  • Active listening: Be attentive to the needs of team members, including their physical, mental, and emotional well-being. Knowing what they want, what’s going on with them, and their purpose is critical to retaining talent.
  • Bidirectional evaluations: Provide opportunities for development and responsibility to the employee while also letting them know their areas for improvement. At the same time, they can evaluate your performance as a leader.

Leaders who are not agile and do not anticipate situations that can benefit or threaten their organization’s Culture will lose valuable employees, directly affecting companies’ performance. Teams with high performance and commitment are essential to survive crises. In the words of Henry Ford, “Gathering together is a beginning. Keeping together is progress. Working together is a success.”

People and Organizational Performance
Resilient Management in Volatile Times

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