"Culture is King: The Surprising Link Between Workplace Culture and Profit Growth"

Joseph Clementi Joe H Clementi

The Hidden Power of Culture

"Preserve the core culture and innovate around the rest." – Jim Collins

Culture has always been a key driver of organizational success, but its impact on the bottom line is often underestimated. A recent study found that engaged employees can drive a 21% increase in profitability and a 10% boost in customer loyalty—unambiguous evidence that culture is more than just a feel-good concept: it is a business imperative. So, if you are looking to make an immediate impact, the answer is not necessarily a new strategy, but rather an unwavering focus on your culture.

Organizational culture is the living heartbeat of your business. It is the DNA that shapes how your team members interact, make decisions, and engage with customers. Whether you realize it or not, this culture influences every interaction, every sale, and every customer experience. The question is not whether you have a culture, but whether it is the one you want.

For better or worse, culture and leadership are inseparable. Every action, decision, and behavior from leadership sets the tone for what is acceptable and valued. The challenge is that this happens whether you are intentional about it or not. Have you asked yourself lately: What message is your culture communicating to employees and customers? Is it aligned with your values, or are there unintended consequences?

The Pulse of Culture

Much like the pulse of a living organism, your culture is an energy that you can feel. Walk into any dealership or service center, and the atmosphere will tell you whether the team is energized and focused, or drained and disengaged. Externally, your business might appear healthy and thriving, but internally, the arteries may be hardening—slowly constricting the flow of creativity, motivation, and collaboration.

This energy, what I call “magnetic electricity,” is the blood that pumps through your organization. It is the force that powers engagement, innovation, and customer satisfaction. When this magnetic energy is positively charged, your team is empowered to thrive. But when it is negatively charged, it depletes engagement and morale, draining your organization from the inside.

Here is the truth: Even the wrong culture—or no culture at all—is still a culture. It may just be driving outcomes you never intended. When management’s agendas and priorities lack clarity and purpose, inefficiencies take root, and political posturing clogs the arteries of progress. To keep the pulse strong, culture must be nurtured with intentionality.

Shifting Culture: 10 Practical Applications

How do you shift culture to build an environment where people feel empowered to think, innovate, and excel? It starts with action—decisive, intentional steps that align leadership, teams, and systems.

1. Assess the Current Culture Before you can shift culture, you need to understand where you are starting from. Use surveys, feedback sessions, and observations to get a clear picture of your current culture. What’s driving behavior in your organization today?
2. Define the Desired Culture Clearly articulate the culture you want to create. It should align with your mission and long-term goals. For a dealership, this could mean focusing on creating a customer-first culture that values transparency and respect.
3. Engage Leadership Culture change starts at the top. Leadership must model the values and behaviors they expect from others. If the service manager is not living in the new culture, neither will the rest of the team.
4. Communicate the Vision Culture shifts need clear and consistent communication. Make sure every team member knows the “why” behind the change. Explain how this benefits both the company and the employees themselves.
5. Identify Cultural Champions Empower key influencers within the organization who already live the desired culture. These champions can help spread the message and reinforce behaviors across teams.
6. Realign Systems and Structures Your systems and processes must reflect the desired culture. This means adjusting how you hire, how you measure performance, and how you reward and recognize employees. Culture must be embedded into every operational process.
7. Create Space for Feedback Give employees a voice in the culture shift. Regular feedback sessions or surveys can help you stay on track and make adjustments as needed. When employees feel heard, they become more invested in the success of the shift.
8. Model and Reinforce New Behaviors Leaders must consistently model the new culture. Celebrate employees who embody the values, and address behaviors that do not align. Public recognition can reinforce the positive shift.
9. Be Patient and Persistent Culture change takes time. There will be resistance, and progress may feel slow. But stay the course—persistence is key to long-term success. In the automotive world, where traditional practices may run deep, patience is crucial.
10. Celebrate Successes Acknowledge small wins. Celebrate every step in the right direction, whether it is improved team dynamics, better customer feedback, or more collaboration. These moments will keep the momentum going.

The Big Question: How to Sustain Culture?

Shifting culture is only the beginning. The challenge is sustaining it. Culture is dynamic, and as your business evolves, so will your culture. To keep it thriving, you must reinforce it consistently.

• Ongoing Leadership Development: Continuously train and mentor leaders who can model and sustain the culture.
• Regular Culture Check-Ins: Periodically assess your culture to ensure it is still aligned with your vision and goals.
• Keep Culture Visible: Integrate culture into performance reviews, team meetings, and internal communications to keep it top of mind.

In the end, a thriving culture requires constant nurturing. It is not a one-time initiative but a continuous commitment to creating an environment where your people and your business can flourish.

"Culture isn’t a project with an end date; it’s the foundation you build every day." – Joseph Clementi

Now, how will you sustain your culture?

Embrace the grind. Enjoy the journey. Keep leading.

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Embrace the grind. Enjoy the journey. Keep leading.

? 2024 Joseph Clementi. All rights reserved.

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