Culture Correlations: Why Every Company Needs a System of Record for Organizational Culture

This week, we’re diving into a critical but often overlooked component of company culture: creating a system of record for your organizational culture. Many organizations focus on building culture but lack a structured, measurable approach to track and document it. Without a system of record, culture can become inconsistent, difficult to manage, and nearly impossible to scale.

The Problem: What Happens Without a System of Record for Culture

Without a clear, documented system of record for culture, companies often face several challenges:

• Inconsistent Culture: Without a central record, culture becomes fragmented. Different departments or teams may have varying interpretations of your company’s values and mission, which leads to a lack of cohesion. According to research, 70% of employees feel disconnected from their company’s culture due to inconsistencies across teams.
• Difficulty Scaling Culture: As companies grow, maintaining a unified culture becomes more challenging. Without a system of record, it’s harder to scale and sustain culture across new hires, teams, and even international offices.
• Lack of Accountability: When culture isn’t documented, it’s difficult to hold teams and leaders accountable for upholding it. This can lead to misalignment and, ultimately, poor employee engagement and performance. Companies with misaligned cultures experience 48% higher turnover rates, increasing both costs and disruption.

Why You Need a System of Record for Culture

A system of record for organizational culture acts as a centralized hub that captures your company’s mission, values, behaviors, and expectations. This system allows you to consistently track, measure, and manage how culture shows up across your organization, ensuring everyone is aligned with your business objectives.

Here’s why having a system of record is essential:

• Consistency and Clarity: It provides a unified, clear understanding of your culture across the entire organization. Employees at all levels will know exactly what’s expected of them and how they contribute to the company’s mission.
• Measurability: Culture isn’t just about feel-good values; it’s also a measurable asset. A system of record helps you track how well your culture is being lived out day-to-day. With tools like Instill’s AI-driven culture metrics, you can get live scores on how your culture shows up in everyday business, from communication styles to decision-making.
• Scalability: A documented culture allows you to scale your business without losing the essence of what makes your organization unique. As you grow, a system of record ensures that new employees and teams are quickly onboarded into your culture.
• Accountability: Having culture documented ensures leaders and teams are held accountable. Instill’s system of record tracks values alignment and provides real-time feedback on whether teams are living up to the company’s cultural standards.

What Does a System of Record for Culture Involve?

1. Documenting Core Values and Behaviors: Start by clearly defining and documenting your company’s mission, core values, and the specific behaviors expected of employees. This creates the foundation for consistency across teams.
2. Tracking Cultural Metrics: A robust system of record involves measuring how well these values are being lived out. Tools like Instill provide real-time insights on culture performance, tracking key metrics like psychological safety, trust, and values alignment.
3. Integrating Culture into Daily Operations: Culture must be more than words on paper. A system of record ties culture to daily operations, from onboarding to performance reviews, ensuring it becomes an integral part of how your business runs.
4. Continuous Feedback and Adjustment: Culture evolves, and so should your system of record. Collect ongoing feedback from employees, monitor key metrics, and make necessary adjustments to keep your culture aligned with your business goals.

How to Know If Your Team Needs a System of Record for Culture

1. Inconsistent Values Across Teams: If you notice that different departments or leaders have different interpretations of your core values, it may be time for a system of record to standardize the culture.
2. Difficulty Scaling Culture: As your company grows, are you finding it harder to maintain your culture across new hires and locations? A system of record can ensure culture remains consistent as your business expands.
3. Low Employee Engagement or High Turnover: Misalignment in culture is one of the top causes of disengagement and turnover. If you’re facing these challenges, a system of record can help realign your organization and improve retention.
4. Lack of Accountability for Culture: Are leaders and teams held accountable for how they live the company’s culture? If not, a system of record can help track values alignment and ensure cultural accountability at all levels.

Building a system of record for your organizational culture isn’t just a nice-to-have—it’s essential for long-term business success. By making culture measurable, scalable, and actionable, you’ll create a stronger, more aligned organization that can grow without losing its identity.

Cheers,

The Instill Team