Why Companies Should Invest in Organizational Culture [INFOGRAPHIC]

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  • Mark Rome, zEthics

    Lisa, thanks for sharing your research.

    Can the same be said for the federal government; i.e., “building a great workplace culture pays off.”

    Within most federal agencies, human capital is woefully underutilized. In the aggregate, mismanagement leaves billions of dollars on the table in expenses that could have been saved.

    In the 2012 U.S. Department of Defense (DoD) Financial Report, agency leadership recognized 35 material weaknesses and stated, “many of our systems are old and handle or exchange information in ways that do not readily support strong financial management.” These material weaknesses cost taxpayers billions of dollar annually.

    Only about half (54%) of DoD employees responding to the Office of Personnel Management (OPM) Federal Employee Viewpoint Survey indicated that they were part of a results-oriented performance culture.

    In the Securities and Exchange Commission’s 2012 Financial Report, the Commission reported spending $552.3 million to foster and enforce compliance with federal securities laws while meeting or exceeding only 41% of its performance targets.

    About 70% of U.S. Securities and Exchange Commission employees responded to the Federal Employee Viewpoint survey. Only about one in three (36%) of SEC employees responding to the survey indicated that they were satisfied with the policies and practices of their senior leaders.

    In 2005, the Department of Energy (DOE) estimated the cost of constructing a Uranium Processing Facility (UPF) in Oak Ridge, Tenn. at $600 million, with completion by 2018. Poor management and a design flaw have contributed to astronomical cost overruns and a new estimate that the facility will cost more than $11 billion, and won’t be fully operational until 2038.

    In 2012, only about one in three (35%) of DOE employees responding to the Federal Employee Viewpoint survey indicated that leaders generate high levels of motivation and commitment in the workforce. Similarly, about one in three (30%) of DOE employees indicated that steps are taken to deal with a poor performer who cannot or will not improve.

    Should the federal government implement tools to better understand HOW to leverage their specific culture to drive better performance?

    • Lisa Jackson

      I think it would be fair to say that if the federal government could find the leadership to understand culture, and specifically how to leverage culture as a driver of stronger performance, it’s employees – and indeed the entire country – would be grateful, on many levels. Thanks for sharing these detailed and powerful insights.

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