The Delta Between Good Cultures and Great Cultures – What Sets the Best Apart?

Introduction: Understanding the Delta Between Good and Great

Many organizations pride themselves on having a "good" company culture—one that keeps employees generally engaged, promotes collaboration, and achieves consistent business outcomes. But when you look at the companies known for great cultures, the difference is significant. Great cultures don’t just meet the standard; they elevate it. But what exactly sets great cultures apart from good ones?

The Problem: Why Settling for "Good" Can Hold You Back

The delta between good and great culture can have real business impacts. According to research by Deloitte, companies with great cultures are 2.5 times more likely to outperform their peers in financial performance. Great cultures foster higher innovation, better employee retention, and greater adaptability in times of change. In contrast, companies with only "good" cultures may see up to 20% lower productivity and 33% higher turnover than their high-performing counterparts.

At Instill, we’ve seen firsthand how a well-structured and intentional culture can boost team performance and lead to long-term business success. Without the right tools to measure and operationalize culture, organizations may find themselves falling into the "good" category—without realizing their potential to be great.

What Great Cultures Do (That Good Cultures Don’t)

1. Prioritize Psychological Safety
   • Great cultures create environments where employees feel respected, safe to take risks, voice concerns, and make mistakes without fear of punishment. A study by Google found that psychological safety was the most critical factor in high-performing teams. Good cultures may promote collaboration but often lack the depth of trust and safety required for true innovation.
2. Encourage Radical Candor
   • In great cultures, feedback is frequent, direct, and constructive. Leaders care personally and challenge directly—a concept known as Radical Candor, coined by Kim Scott. In good cultures, feedback may be inconsistent or surface-level, preventing real growth. Research from Gallup shows that companies where employees regularly receive meaningful feedback see a 14.9% decrease in turnover.
3. Align Actions with Values
   • While good cultures may talk about their values, great cultures live them every day. Employees can see those values in action—from how leaders allocate resources to how decisions are made. Companies that align their day-to-day actions with their values are 1.7 times more likely to be market leaders, according to research by MIT Sloan.
   • Instill Flow is designed to help leaders track whether their actions align with their stated values in real-time. This ensures that what is said matches what is lived across teams.
4. Invest in Those with a Growth Mindset
   • Great cultures don’t just provide perks; they invest in people who are eager to learn and grow. Employees are given opportunities to advance and develop new skills. A study by LinkedIn shows that companies that prioritize learning and development see a 50% increase in employee retention. This focus on fostering a growth mindset drives better long-term results than surface-level benefits.
5. Embrace Diversity of Thought
   • Great cultures actively seek out dissenting perspectives and foster an inclusive environment where different ideas are welcomed. This diversity leads to higher innovation—research from BCG shows that companies with more diverse leadership teams have 19% higher revenue from innovation.

Observations to Make in Your Meetings: Is Your Culture Good or Great?

Want to assess if your culture is good or great? Start with what you observe in your meetings:

• Do people self-police the culture? In great cultures, employees hold each other accountable for upholding the culture. They don’t wait for management to call out behavior that violates values—they do it themselves. This shows a deep alignment with the culture and a sense of ownership.
• Who speaks up? In great cultures, various voices are heard, and quieter team members are encouraged to contribute. If the same few people dominate discussions, this could be a sign that psychological safety is lacking.
• How is feedback delivered? Is feedback given in real time, directly, and constructively? In great cultures, feedback flows regularly, allowing teams to adapt and improve quickly. Surface-level or sporadic feedback often signals a "good" culture, not a great one.
• Are values lived in decision-making? During decision-making, watch to see if company values are referenced or considered. Great cultures tie their actions back to their core values. If values feel more like slogans, there’s room to grow.
  Tools like Instill Flow offer leaders the ability to track these cultural behaviors in real-time, providing valuable insights into how well teams are living the values.
• Is failure punished or celebrated? In meetings, how are mistakes handled? In great cultures, failure is viewed as a learning opportunity, not a setback. If mistakes are swept under the rug or met with blame, innovation will struggle to thrive.

Conclusion: Moving from Good to Great

The delta between a good culture and a great culture may seem small, but the impact is enormous. Great cultures don’t just talk about values or innovation; they live them daily through intentional actions and behaviors. If you want to take your culture from good to great, start by assessing what’s happening in your meetings, how feedback is shared, and whether your values are truly in action.

By focusing on these key differentiators and leveraging tools like Instill Flow, you can unlock higher productivity, lower turnover, and a culture that drives sustained business success.

Cheers,       

The Instill Team