The Importance of Culture in Organizations

Organizational culture consulting

Organizational culture is more important to your company’s long-term success than you may know. Most researchers agree that a large part of an organization’s success stems from its culture. But why is it important? How do understand and build company culture? How can having a positive organizational culture help your business? IA Business Advisors have been helping organizations build positive company cultures for 25 years, so we offer our expertise to these commonly asked questions surrounding organizational culture.

Why is organizational culture important?

Organizational culture adds value for several of your organization’s stakeholders. Here’s a breakdown of how a positive company culture can impact some of them:

Employees: Boosts performance, productivity, success, morale, job satisfaction, engagement, attitudes, loyalty, and motivation. Decreases turnover.

Community: Helps to attract and retain talented individuals. Creates a good reputation in the surrounding community.

Shareholders: NYC Data Science Academy conducted a study to see if shareholder value increases because of positive company culture. They found a positive correlation between positive company culture and shareholder value.

How do you understand and build company culture?

Culture is people. Your team has the power to create and propel your organization’s culture, but it can’t be built in a day. Culture is built slowly, over a long period of time, meaning culture is hard to change. Once your organization’s culture is there, it’s there. If you want to change your culture, you’ll have to understand your current culture and the culture you want it to become. First, it’s important to understand what influences company culture internally and externally.

Internally
Organizational Structures
Processes
Systems
Budgets
Leadership Styles
Changes in Leadership
Team Members
Externally
Economic Recession
Government Regulations
Major Lawsuits That Damage the Reputation or Resources of a Group
Acquisition by Another Company
An Unexpected Catastrophe

By understanding what influences your culture, you and your team can begin defining your organization’s culture. Although, be sure to remain mindful of the differences between actual and claimed culture. Actual culture is, just that, your organization’s actual culture. Claimed culture is what you want your organization’s culture to be, but it may not live up to those expectations. Ask your team the following questions to start distinguishing what your company culture is. Make sure they feel safe and secure in answering honestly, or you might not get a full understanding of your actual culture.

What is your impression of our company culture?
What do you feel are our culture’s strengths?
What do you feel are our culture’s weaknesses?
What are some things you think we don’t want to see in our culture?
What do you feel we can do to improve our culture?

Culture can be built by design or default, so if there are parts of your culture that you identity you don’t like, you can change it. Define with your team the positive qualities they want to see in their organization’s culture, and also make a list of qualities you don’t want to see in your company culture. By defining the positive and negative, you make it easier for all team members to concretely understand what is and is not accepted behavior. All team members should demonstrate and reward the behaviors they wish to see continue and negate and discourage the behaviors that conflict with positive culture (as defined by your organization).

How do you sustain company culture once built?

Maintaining and propelling your organization’s culture starts at the top with leadership. Leadership needs to lead by example and exude the positive qualities of your company’s culture if you wish for the rest of your team to pick them up. You also need to clearly define your company’s culture, as mentioned above, so everyone knows what is and is not considered appropriate for your culture (again, as defined by you). Find opportunities in negative behavior to serve as lessons for everyone and educate the whole team on the positives.

Conclusion

Organizational culture needs to be addressed across organizations of all types and sizes because it’s vitally important to the workforce. Gallup released a poll in 2018 stating that employee engagement is on the rise in the US, but it’s still only at 34%. Positive company cultures can get employees more engaged and all around happier with their workplace. When your employees are happy, productivity increases, profits increase, shareholder value increases, and all around it’s a positive influence on the company. If you’re not sure what your company culture is or need help leading a change management initiative for your culture, contact IA Business Advisors. We have 25 years of experience helping companies develop positive cultures to increase their bottom line.

Looking for help with Workplace Culture?

< Older Post

Newer Post >

A blue piggy bank is sitting on top of a stack of wooden blocks.

How to Mitigate Financial Risk Using the S.M.A.R.T. Management System

June 9, 2025

In an increasingly volatile economy, businesses cannot afford to be reactive when it comes to their finances. Whether you're a startup founder, a growing enterprise, or a seasoned business owner, the risk of financial instability is real—and growing. At IA Business Advisors, we help companies proactively navigate these risks using our comprehensive S.M.A.R.T. Management System . S.M.A.R.T. is more than just a goal-setting acronym. It is a decision-making and execution framework that brings clarity, structure, and alignment to every part of your business. From six-week action plans to one-year targets and long-term strategy, S.M.A.R.T. ensures your financial operations support healthy growth and resilience. Understanding Financial Risk in Today’s Business Climate Financial risk is multifaceted. It ranges from cash flow disruptions and market shifts to internal mismanagement and over-leveraged growth. As Brian Smith shared on a recent Daily Influence podcast episode, unchecked growth can drive a company into bankruptcy. Scaling without intention—chasing fast growth without aligning the internal team and financial resources—leads to diluted communication, quality issues, and operational chaos. Mitigating financial risk begins by understanding that more revenue doesn't always equal more stability. True sustainability comes from building systems that support intentional, well-paced growth. The S.M.A.R.T. Framework in Action: Reducing Financial Risk Our S.M.A.R.T. Management System guides businesses in creating resilient, financially stable operations through: 1. Specific: Build with Intentionality Clarity is power. One of our podcast guests, Mike Heatwole (CEO of The Dala Group), emphasized the importance of sitting down to define what matters most—whether that’s paying down debt, investing in growth, or launching a new venture. When your financial goals are specific, your strategy becomes targeted and less prone to reactive decision-making. “If we don’t know what the goal is, how do we get there?” — Mike Heatwole, CEO of The Dala Group 2. Measurable: Track What Matters Many companies are blindsided not by invisible risks, but by unmonitored ones. We help clients implement tools to track cash flow, margin fluctuations, and budget variances in real time. Visibility into your financial health gives you the power to respond early and course correct as needed. 3. Achievable: Assign Financial Stewardship Risk is reduced when financial responsibility is distributed. Through teamwide financial literacy and clear accountability, we empower organizations to make stronger daily decisions. No individual person should carry the entire burden—and no key area should go unmonitored. 4. Relevant: Make Risk Management a Habit Quarterly or biannual financial health check-ins create a sustainable rhythm. These don’t have to be complicated—they just need to be consistent. Regular reviews embed risk awareness into your company culture and decision-making process. 5. Timely: Foster Honest Dialogue Financial silence is a hidden threat. As Brian noted on the podcast, emotions like fear or shame can prevent businesses from facing financial realities. We encourage honest, blame-free communication around financial performance, creating space for solutions and collective action. Case in Point: Short-Term Action, Long-Term Impact One of our clients, a family-run distribution company, had strong revenue but was bleeding cash due to aging receivables. Together, we built a six-week S.M.A.R.T. Plan focused on accounts receivable recovery. We implemented weekly check-ins, assigned ownership, and used real-time tracking. Within 90 days, their outstanding A/R dropped by 22%, freeing up capital and restoring operational confidence. It’s Never Too Late to Get Financially Intentional Many leaders in their 40s, 50s, or 60s worry they’ve waited too long. But as Mike Heatwole wisely shared: “It’s never too late. Just get started. Do something.” Progress—not perfection—is the goal. Start small. Build momentum. Take the next best step. This mirrors a concept we love from The Gap and The Gain by Dan Sullivan: measure progress based on how far you've come, not just how far you have to go. Final Thoughts: Make Financial Stability a Strategy Mitigating financial risk isn’t about a dramatic overhaul. It’s about consistent action, visibility, and intentional decision-making. With the S.M.A.R.T. Management System, IA Business Advisors helps businesses turn risk into clarity, fear into focus, and instability into opportunity. If you’re ready to start, we’re ready to help. Let’s have a conversation about what matters most to you—and build from there.

Enhancing Interpersonal Relationships for Toxic Workplace Recovery

May 29, 2025

Hello, team! Mary here, continuing our journey through the I in Team series, where we challenge and empower you to Find , Be , and Build Your Influence. One of the most common things we’re asked to help our clients with is toxic workplace recovery. This directly connects to the culture of the team, and while rebuilding that culture takes time and intention, it is absolutely possible. In fact, with the guidance of our I in Team approach and S.M.A.R.T. Management system, we’ve successfully helped more than 19,000 teams evolve into high-performing, values-based cultures. If you’re ready to take the lead and breathe life back into your team, we’re here and ready to support you. Practice Emotional Intelligence One of the most impactful steps you can take on your toxic workplace recovery journey is to practice emotional intelligence (the ability to recognize, understand, and manage both your own emotions and the emotions of those around you). Toxic environments are often the result of emotional disconnection, poor communication, unnecessary competition, and a culture that avoids constructive feedback. Begin by shifting your perspective: respond with empathy, ask thoughtful questions, and use “I” statements. These habits model two traits, emotional regulation and empathy, that influence how your team interacts and solves problems. Start small. For example, set a personal goal to give one piece of sincere praise or recognition per day. This is a S.M.A.R.T. goal, and it starts to reinforce positive emotional exchanges. Over time, this contributes to a psychologically safe environment where people feel seen and supported. Foster Open Communication Once emotional intelligence begins to take root, toxic workplace recovery is just around the corner. Open communication becomes more natural because when team members are aware of their own and others’ emotions, communication becomes seamless. The number one rule? Listen. Really listen. Without listening, communication is incomplete. Try implementing monthly influence partnerships—team pairings that rotate so members can get to know each other beyond surface-level roles. This creates connection and, when done with consistency (Timely), fosters trust across your team. Another way to build open communication is by creating a structured feedback loop. Clarify how and when feedback should be given—perhaps during weekly one-on-ones or monthly review meetings—and make sure all team members understand the difference between criticism and constructive feedback. S.M.A.R.T. feedback is Specific and Relevant, and when delivered with respect, it encourages team members to grow without fear. Lead by Example As we say throughout the I in Team series, everyone is a leader regardless of title. Whether you’re in the C-suite or just starting your first job, how you show up directly shapes the culture of your team. To begin, set some respectful boundaries rooted in your values. Let others know what you need to succeed and what behaviors support or disrupt your work. When disagreements arise, demonstrate what respectful disagreement looks like—calm, focused on solutions, and free from personal attacks. If your workplace has leaned into competition, shift the focus to collaboration. Collaborate on micro-goals, like shared tasks or cross-functional projects. Make the results Measurable and celebrate wins together (publicly, if possible). Consider S.M.A.R.T.-based team-building events (like problem-solving challenges or goal-setting workshops) to reinforce collaboration in a meaningful way. Final Thoughts Toxic workplace recovery starts with you. Every interaction, every word, every moment of listening is a chance to model what’s possible. Show up the way you want others to show up. If your team is struggling to rebuild or you need expert guidance, reach out . We’re here to help. Let’s keep influencing responsibly and positively together.