• Michael Intravartolo

[Podcast] The Importance of Culture in the Workplace

Updated: Oct 1, 2019


S2E7 Two Guys, Coffee & Business


An organization’s culture may be one of its strongest assets or it can be its biggest liability. The reason culture is so important is that its impact goes far beyond the talent in the organization; it has significant influence on the organization’s goals. Culture drives or impedes the success of an organization. With culture impacting the talent, the product, the clients as well as the revenue, why would a company not measure, review and intentionally nurture something so important and critical to its success?



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Show Notes

So what does a good corporate culture influence?

  • Improves Productivity

  • Employees are more in tune with the needs of their managers, fellow employees and customers

  • Entrepreneur, an online resource for business owners, says that employees who work for companies with healthy workplace cultures may be more committed and productive.

  • Increases Marketability

  • Identity. Culture contributes to the identify and values of your company. For example, if your corporate culture is one that prioritizes setting and meeting goals, your individual workers will be more likely to set and meet goals of their own. It’s a good way to set and maintain the direction of your employees, and without it, it’s hard to keep your company’s values coherent.

  • Makes an impact on the type of talent your attract and hire

  • In an article for Harvard Business School's, “Working Knowledge,” professors James Heskett and W. Earl Sasser say that companies with well-defined corporate cultures often are recognized as better places to work, causing them to be known among prospective employees.

  • Bottom line, a strong company culture attracts better talent and, more importantly, retains that talent.

  • Forms Unity Between Employees

  • Employees and organization members take cues from management as they form their opinions about the culture of a workplace. Once employees adopt the shared norms of a company, it unifies employees and management.

  • Patty Vogan, Entrepreneur.com's “Leadership” columnist, says that corporate culture starts and ends at the top with the business owner and upper management. The unity makes employees feel like they're a part of a team. Entrepreneur online says this feeling makes employees more concerned for the success of the entire business, not their own personal accomplishments.

5 Keys to help create a better corporate culture

  • Communicate. Understanding why a company follows a particular process and ensuring that information is properly disseminated are crucial. Another example of good communication is to provide opportunities for customers to visit a particular factory and meet with manufacturing employees. Let the two groups discuss the impact the products have on customers.

  • Allow for more control of work. In manufacturing, much of the work is predetermined, based on the nature of the day-to-day process. Each day and hour might be prescribed, with the employee having little say over his or her schedule. Not surprisingly, this could dampen engagement. Great manufacturing leaders figure out the amount of control they can give back to the employees, which allows them some choice in potentially rote procedures.

  • Create accountability. Great managers work with employees to establish how "we can all be" accountable to the work. When done right, accountability creates higher engagement. It is important to make sure underperforming employees and managers are held accountable, even in situations where management structures may not lend themselves to performance accountability.

  • Make sure people feel like they matter. Perhaps the most important task for a leadership team to figure out -- how to make every associate feel like they matter when they arrive at work every day. This includes making sure every employee understands how they fit into the complex infrastructure of their company. For example, bring customers to the plant to speak with employees about the impact of their products or take "field trips" to customer factories to help plant employees see how the product is used in the different products the client produces. Or hosting breakfasts for the night shift regularly to draw people together in a positive way.

  • Be available, and be engaged. Leaders must be engaged, as employee engagement is a two-way street. Manufacturing managers must be approachable and receptive to employee concerns, and incorporate feedback into enriching future procedures.

Do you have any tips that help create a great workplace culture? If so, tell us in the comments section below!

YouTube Transcript

- guys coffee and business podcast hey

00:12

everybody we're back to you guys coffee

00:16

business podcast I am Tom Dortch and I'm

00:20

here with mr. Michael introvert ole oh

00:23

there you have it the two legends of erp

00:25

podcast that's right the originals yeah

00:29

so actually it's funny actually I was

00:33

looking up other ERP podcasts earlier

00:35

and I actually saw us come on it's kind

00:37

of cool yeah so I guess we are out there

00:40

hope everybody's listening and that

00:41

making waves you know feel free to

00:43

comment if you want to hear about

00:44

anything yeah

00:46

please no more haircare tips for me

00:48

though I'm higher than everybody I get

00:50

it so today we're actually gonna talk

00:57

about how important is to have a

00:59

positive culture in the workplace yes

01:03

it's very important employees want to

01:06

come to work when they feel good happy

01:07

interacting with others and things are

01:09

on the up-and-up people want to feel

01:10

like they're growing so it's very

01:13

important nobody likes to come to work

01:15

if it's not fun or it's depressing and

01:18

right you're gonna have hard times and

01:20

it's stuff like there was always you

01:23

know

01:23

flowers and strawberries whatever this

01:26

thing is so it's very important well

01:30

that kind of wraps up everything I have

01:35

a strawberry right yeah so there's

01:39

actually tons of studies and research

01:42

that's gone out into this actually the

01:45

American Psychological Association

01:47

estimates that more than 500 billion

01:50

dollars is a syphon and kept from the US

01:53

economy just because of workplace stress

01:56

500 billion yes good yeah this isn't

02:00

that crazy five hundred and sixty to

02:03

eighty percent of workplace accidents

02:05

are attributed to stress really right

02:09

that's a lot right that's because

02:11

everybody's other stuff on their mind

02:13

and I ain't attention to safety things

02:15

exactly man isn't that I mean some of

02:18

these numbers were just yeah I read a

02:20

bit almost laughs because they were just

02:22

crazy I know somebody who actually uh

02:24

tripped over a safety mat once at work

02:26

and got injured hopefully you know I

02:29

would see everybody kind of made fun of

02:30

safety man third but uh maybe at other

02:33

things that is mine maybe was stressed

02:34

with this job right maybe make sense now

02:37

they kind of bring it to my last one

02:40

eighty percent of doctor visits are due

02:43

to stress really yeah I guess that makes

02:47

sense if you think about stress and

02:49

heart palpitations people think it's a

02:50

heart attack and right and in a

02:53

heartburn or whatever and also stress

02:55

will lower your immune system and make

02:59

you honestly get sick easier so that's

03:01

that's why I got shingles right now we

03:05

know lack of sleep stress yeah so I've

03:10

got an interesting quote here for mom

03:11

Peter Drucker who is

03:14

he's known as the father of business

03:16

management and he says culture eats

03:19

strategy for breakfast meaning like we

03:23

said earlier if you're happy and your

03:24

corporate culture is great

03:25

forget the strategy people are going to

03:27

perform regardless yeah and a lot of

03:29

these bigger companies Microsoft Google

03:31

and and all those are for you know

03:34

everybody's working remote there's less

03:36

stress everybody come together as a team

03:38

and just performing yeah so it's pretty

03:41

pretty amazing that's cool close Thanks

03:44

so I have something here that I'd like

03:47

to read real quick and it is as

03:52

organizations cultures maybe one of its

03:55

strongest assets or can be its biggest

03:56

liability

03:57

the reason culture is so important is

04:00

that its impact goes far beyond the

04:01

talent

04:02

sorry far beyond the talent in the

04:04

organization it has significant

04:06

influence on the organization's goals

04:09

culture drives our impedes a success of

04:11

an organization with culture impacting

04:14

the talent the product the clients as

04:16

well as the revenue why would a company

04:18

that measure review and intentionally

04:20

nurture something so important and

04:23

critical to its success

04:25

they don't just sum it up what does it

04:30

lays out that every it's important in

04:31

every aspect your business yeah it

04:35

really is do you all try to keep your

04:39

alright here - are you one of these guys

04:42

that adhere to corporate culture are you

04:44

or you know somebody wants to be on

04:46

I been trying to change it for the

04:47

better um I guess I kind of just adhered

04:53

to it more so like I just kind of so I

04:55

try to fit in and yeah exactly

04:57

yeah I really great and that's why

04:59

people stay job set right so if they

05:04

will bring up picketing outside work

05:07

last week that wasn't me if I never see

05:12

didn't work out so uh what does a good

05:20

corporate culture actually really do in

05:24

our last podcast and in this one we've

05:26

kind of talked about productivity a lot

05:28

it definitely improves productivity

05:30

right but without a doubt yeah

05:32

absolutely yes and then the workers I

05:37

feel like when they're happy with where

05:39

they're at they're kind of proud to work

05:43

there and then also share their

05:45

experiences there which enhances your

05:48

company brand oh and if more people are

05:50

talking about how great solution systems

05:53

is everything like oh I should check out

05:55

solution systems yes so and you also are

05:59

able to hire better talent right because

06:01

people want to work for you

06:03

you hear about the culture yeah it

06:06

almost goes viral yeah that's kind of

06:08

cool also kind of a cool little thing

06:12

that I never it took me a little while

06:14

to think about this but I mean if you're

06:17

happy where you're working you'll go

06:18

home happier

06:19

mmm-hmm and when you go home happier

06:21

that makes your family happier yes and

06:24

then they go to their friends and it

06:26

just creates a whole more positive

06:29

impact on society so did you just stop

06:32

world peace

06:32

I did see now we know it's the

06:35

workplaces stress and world peace from

06:38

the pivot and coming in thing it's crazy

06:40

because you know work is basically your

06:44

second family I mean you spent so many

06:45

hours at work that you probably spend

06:49

more hours at work than you do with your

06:50

family because of me right

06:51

we've got chores and you know things to

06:54

catch up on and do so yeah good culture

06:57

is very impressive yeah and also another

07:03

thing with like a better culture is your

07:06

employees become more loyal so the kind

07:11

of the at workplace stress leads to an

07:13

increase of 50% voluntary turnover

07:16

that's the stat that I found on

07:18

and then follow-up stat replacing a

07:22

single employee costs almost 20 percent

07:25

of that employee salary really yeah so

07:29

not only does it not only does a health

07:32

productivity but it helps improve your

07:34

own cost

07:35

yeah it affects that bottom line right

07:38

not a dollar so fifty percent turnover

07:41

is voluntary with stress yeah man that's

07:45

crazy yeah what does it say about some

07:48

of these surance companies their

07:50

telemarketing company yeah working their

07:58

people to heart you know very crazy or

08:01

not rewarding them take them out a

08:03

family or not to a family but to uh

08:06

already soft some yeah make them feel

08:10

yeah science I kind of how do you create

08:14

the positive culture that's a good

08:17

question so in my opinion or idea it

08:20

starts with the top down yeah yeah I

08:23

think there's a bunch of different ways

08:25

and uh as an employee I think that the

08:29

best way to do that is to kind of care

08:31

for and be interested in callings almost

08:35

as friends yes

08:38

and try to avoid blame forgive people

08:41

for making mistakes cuz mistakes happen

08:44

all the time all the time yeah it's just

08:49

nature it's just how we are

08:51

yeah nobody's perfect right so I think

08:53

it just comes down to kind of treating

08:55

each other with respect trust yeah so I

09:01

think that rights of employees and

09:04

organizations organization members

09:08

pretty much take cues from upper

09:11

management you know as they form their

09:13

opinions about the culture

09:14

so if upper management is active and is

09:17

pushing you and persuading you to learn

09:19

more and try different things and grow

09:22

as an individual and it's it's it's

09:25

wonderful you you feel wanted you feel

09:28

like you belong to something and if

09:29

people are seeing themselves progress

09:31

that's what depression goes down low

09:33

according to Tony Robbins hey and people

09:36

feel better about themselves right so uh

09:38

I get it yours we hear something penny

09:42

Volgin and entrepreneur calms says she's

09:45

a leadership columnist

09:46

she says that corporate culture starts

09:48

and ends at the top with the business

09:50

owner and upper management the unity

09:53

makes employees feel like they're part

09:54

of the team entrepreneur Alliance says

09:56

this feeling makes employees more

09:58

concerned for the success of the entire

10:01

business not just for their personal

10:03

accomplishments already so you don't

10:05

really sit back and say I need to do

10:07

this just so I look good even though

10:09

it's gonna have a negative effect on a

10:10

company

10:11

you know two weeks three months six

10:13

months a year whatever you do sometimes

10:15

I guess you take it for the team to help

10:17

benefit the organization yeah so I've

10:23

got five Kiwis here that I got to help

10:26

create a better corporate culture all

10:28

right first is communicate it's

10:31

important to talk communication I won't

10:34

go into each one of these in detail

10:36

second is allow for more control of work

10:40

so we go to that yeah

10:42

so in manufacturing much of the work is

10:45

predetermined based on the nature of the

10:47

day-to-day processes right right each

10:49

day an hour might be prescribed with an

10:52

employee having little say over his or

10:54

her schedule this could dampen

10:57

engagement great manufacturing leaders

11:00

figured let's just manufacturing of the

11:02

great leaders in general figure out the

11:04

amount of control they can give back to

11:05

the employees which allows them some

11:07

choice and potentially where procedures

11:11

I guess hmm so it's empower your

11:14

employees bring them to the leadership

11:17

table sometimes I don't feel like

11:20

they're doing something yeah next I got

11:22

these creep accountability good good

11:28

culture definitely makes people want to

11:31

be accountable

11:32

if you want to do well to help the

11:36

person who's above you you know what I

11:38

mean so it's great that's this makes

11:41

sure people feel like they matter which

11:44

we've already talked about and as a

11:46

leader be available be available be

11:49

engaged so I guess when do you think

11:58

would be the best time to like kind of

12:03

change your culture let's say you

12:05

realize it your culture is not doing so

12:07

good you need to change it around what

12:09

anything would be the best time to do so

12:12

huh I would start with a simple paint

12:16

job in the office where we're at okay

12:18

I've seen studies that show if you paint

12:20

your office every six months whatever

12:23

whether it's a better color or worse

12:24

color people see it's change and it feel

12:26

different and actually become more

12:28

productive so start there just slow

12:30

little things we've change the lighting

12:32

or something add something and then

12:34

progress little by little until you are

12:36

able to change the culture in it in the

12:38

wrong that you want it over yeah that's

12:39

this is my opinion

12:42

good luck

12:44

what are you I don't know I feel like

12:47

when you're switching your ERP system

12:50

everybody's already kind of starting to

12:53

change their thinking a little bit why

12:56

not try to improve morale yes and change

12:59

the culture while you're doing that as

13:01

well definitely educate educate educate

13:04

yeah I'll change the culture great be

13:07

great yeah just gotta be careful that

13:09

sometimes you're not taking on too much

13:11

at worries I want to stress them out

13:13

when you're trying not to stress people

13:14

right yeah it's a great leaders

13:17

recognize that and they know what to do

13:18

yeah all right let's see ah I have a

13:23

couple other thing a couple of their

13:25

statistics on engaged employees went to

13:29

Daren lives here so it was a study by

13:32

the Queen School of Business disengaged

13:36

workers and 37% higher absenteeism 60%

13:41

more errors and defects and resulted in

13:44

16% lower profitability for the company

13:47

Wow just from having disengaged

13:49

employees

13:50

Wow

13:52

I get it I mean if you come to work and

13:56

hate it don't feel you know the culture

13:58

is good or whatnot and nobody pays

14:00

attention right yeah can I try as her

14:02

right you're gonna take all those days

14:03

off the kids yeah everything you know

14:05

what I mean right

14:06

that's how a lot of people they take

14:08

days off they're not supposed to and end

14:10

up getting like oh they don't care I

14:13

guess it's kind of crazy yeah I heard

14:17

that uh Amazon Jeff Bezos

14:19

he's doing something difference when

14:20

you're at work and you're not able to

14:22

perform the way that you want instead of

14:23

getting let go you get to choose between

14:27

being reviewed by your peers presenting

14:32

your case to a like a mediator or going

14:35

in front of a council and presenting

14:38

your case and so what happens is if it

14:43

turns out you actually make a good case

14:45

for yourself they will offer more

14:48

training that you think is beneficial to

14:50

actually do your job and we reevaluate

14:52

you like six months or a year

14:54

right I like that yeah it's pretty it's

14:58

different whether or not it's gonna work

15:00

I don't know I read one story person was

15:05

fighting their cases but they were so

15:07

afraid to go before their peers and see

15:10

what they're gonna say about that's

15:14

interesting yeah that's

15:17

what we're gonna start change on

15:18

agriculture yeah definitely especially

15:20

for a big company like that right so

15:23

what else you got there yeah that's

15:25

pretty much summed up everything I have

15:28

you have anything else let's see so we

15:30

talked about improving productivity

15:32

increasing marketability bringing in

15:34

more talent

15:41

I think we covered it off all right

15:43

David

15:45

hopefully we uh solved all the workplace

15:47

problems and world peace that good

15:50

that's right did Tom sophomore solve

15:53

world peace it was great

15:56

thank you everyone yeah thanks hope to

15:59

see you soon bye


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