" The best performing companies worry less about performance and
more about their organizational capabilities" (Bititci, 2015)
I agree with the statement that the best performing companies worry
less about performance and more about their organizational
capabilities because culture has a huge impact in differentiating an
organization with its competitors. Implementing an effective culture
can create separation in some of the more overlooked aspects of a
successful organization. An increased emphasis on improving
organizational culture can impact companies to become more
efficient. This is because businesses that have a strong culture tend
to be more successful than their counterparts because they have
systems in place that promote employee performance, productivity,
and engagement. By incentivizing individuals in the company, you are
creating an environment that promotes productivity and connects
the individual employees with the companies’ overalls goals and
strategy. Additional benefits to a strong organizational culture
include increased engagement, strong brand identity, elevated
productivity, and a healthy team environment. It also reduces the
likelihood of turnover and creates transformational power. They will
be more likely to transform ordinary employees into future leaders
that can move the organization in the right direction. By having every
one of the organizations feel like they have this opportunity allows
them to want to create more of an impact to the business so that
they can grow themselves and the organization. I think this translate
directly to our current assignment in comparing company A and
company B. High performing organizations have already set a
baseline for their financial returns and are generally able to maintain
that relatively easily. This means that they can allocate more time
and resources to perfecting other aspects of the organization,
including culture. Company culture has been a focus of the largest
organizations in the country, and they have utilized the creation and
maintenance of an effective culture to improve their performance
and capability. When looking at the capabilities and culture of
companies A and B, I noticed some differences. Company A has a
better foundation for growing positive company culture because
they include it into their company goals. One of their stated goals is
that they want to be one of the best places to work and that they
want to increase customer satisfaction. By Increasing customer
satisfaction improving the workplace for their team members. They
are going to have to improve culture on a day-to-day basis. This will
include better incentives for team members to grow while
connecting those incentives to the company-wide goals. Company is
also doing better financially because they are seeing about a 19%
growth which tells us that this focus on culture and team member
and customer relations has made an impact on their bottom line. This
means that their efforts have likely paid off and implementing these
changes, including becoming more sustainable will increase the
overall brand image and increase the likelihood that their customers
will have a positive experience. Looking at company B tells us a
different story. They do not have the same stated goals to improve
customer satisfaction or become one of the best places to work.
They are currently operating in a lower cost field which means that
they are solely focused on cost competition with their competitors.
This makes it a lot harder to compete with other organizations that
have better customer service and similar pricing. Their capabilities
are at a disadvantage because of this lack of culture, and we can see
that in their financial performance. They suffered some losses and
did not have as easy of a time bringing themselves back from those
losses. This could partially be due to their lack of customer loyalty
and customer satisfaction. Company A has a bigger emphasis on their
culture which ultimately leads to an increase in their organizational
capabilities as we can see in their financials. Company B on the other
hand does not put an emphasis on culture and does not have any
stated cultural impact strategies unless we want to include the
increasing of wages in certain parts of the country. I have seen this
firsthand within my personal experience working at Rocket
Mortgage. When I started with the company about a decade ago, we
were the 5th largest lending organization in the country and now in
2022 we are the largest lending company in the country. One of the
things that I was taught early in my career was that we are not
focusing on being the cheapest, but rather by giving the best
experience to our clients. We put a big emphasis on rewarding team
members and incentivizing them to give feedback. They also hire
from the inside out, which creates an environment where team
members feel like they can move up in the chain of command by
implementing innovative ideas. This ultimately creates an
environment where everyone is more productive, meaning that you
can do a lot more with a smaller team. This, along with the focus
helped the organization grow to be the largest in the country.
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Birk, D. R. (2015). Why Companies Screw up: It’s the Culture...
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