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SAP | AMERICAS
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September 2006  |  Subscribe   |  Archives   |  Contact SAP
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      SAP BUSINESS INSIGHTS    
     
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space Creating a Productive Company Culture

It may not be top of mind for many executives, but your company's culture – which is made up of the beliefs and attitudes of your employees – can significantly affect your company's bottom line. With a positive culture, employees may believe that their work is rewarded and that their managers really care if they do a good job. On the other hand, a negative work culture may have employees believing that it pays not to make waves, or they should do just enough to get by. Those beliefs end up affecting your company's performance.

The good news is that with basic leadership skills you can create a company culture that is positive, productive and profitable. Use these tips to improve your work culture:

Focus on key culture touchpoints
Take the time to understand what issues influence your company's culture. Key factors include:
  • Manager behavior. The belief system of a manager clearly influences team members. It is not what a manager says, but what a manger does.
  • Employee recruiting. Finding employees that fit with the way your organization operates can influence productivity and reduce worker turnover.
  • Line of business. Some industries and professions have their own, well-established sets of cultural beliefs, and many professionals will bring these beliefs with them.
  • External culture. The culture of the community can strongly influence your internal culture, so you may need to learn and respect those beliefs to keep your organization running smoothly.
Have a clear mission
Does your company have a clear, cogent mission statement that states, in simple terms, exactly why the business exists? An easily understood mission statement makes it easier for people to set priorities and make decisions. It defines the organization. Make sure everyone in your company is on the same page when it comes to the mission by continually reinforcing the purpose of the organization. They are not just words to be spoken at the annual sales meeting.

Reward the right behaviors
Once the organization's mission and purpose have been made clear, determine the desired behaviors that are consistent with that set of beliefs. Managers must make an example of these behaviors so they are passed down effectively to all employees. For example, if clear communication is important, then it is up to the managers to recognize, reward, and practice it.

Encourage skills and learning
Don't expect the behaviors you want to just appear – they must be taught. New employees need to know what the organization expects of them and how they can achieve it. Managers need to coach employees through new situations, while expanding their skills and knowledge. Encourage employees to try new ideas and approaches. By being open to new ideas, managers encourage a supportive work culture that can quickly adapt to change.

Talk in terms of employee interests
How do you discuss your company's future? Many business owners and managers arrange meetings to talk about growth and profits, assuming the employees value these things. However, many employees leave these meetings with the feeling that other people see the benefits if they work harder. Instead, talk about the company's future in terms of the employees. More earnings may open up opportunities for training or other desirable benefits. Expansion means more people will get promoted.


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Business One News
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Triangle, Inc., a non-profit organization for people with disabilities, has implemented the SAP Business One application for its business management. The capability gives the company access to an accurate, up-to-date view of internal operations. Learn more.


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About SAP Business One
The SAP Business One application is designed specifically for small and midsize businesses offering an integrated and affordable solution for business management. For the first time, business owners have a single system that automates critical operations and provides an up-to-the-minute picture of their entire business.
Learn about SAP Business One.

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