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What are the benefits of a culture based leadership style?

Without a doubt, leaders who prioritise “people and culture” at the heart of their strategies consistently build organisations that are both admired and exceptionally successful. Some business leaders, however, may find the idea of focusing on people or culture nebulous compared to driving their businesses through sales or other metrics alone because the impact of culture on tangible metrics like revenue and profit can be harder to quantify.

Sales figures provide immediate, concrete data that directly reflects business performance, whereas the benefits of a strong culture—such as improved employee engagement, retention, and innovation—manifest potentially over a longer period and are less directly measurable.

Additionally, leaders with a traditional mindset may view cultural initiatives as “soft” or secondary to the “hard” numbers-driven strategies of sales, potentially underestimating the profound influence that a positive, well-managed culture can have on long-term business success.

One question I would ask in these more traditionally driven companies is whether there is a clearly articulated go-to-market vision and sales plan anywhere because culture building requires the expression of a clear vision that binds all, usually emphasising in the most successful organisations, where and how to win in the market. The traditionally lead organisation, usually, in comparison, is one where focus on the current financial year, with attendant feast and famine, is the primary experience.

Culture building in organisational terms can be misunderstood. In what ways then, can a people first cultural building approach to organisational leadership help to transform not only the enterprise but it’s financial results?

Increased morale and engagement

When employees feel that their well-being and needs are a top priority, they are more likely to be authentically engaged and motivated. They feel valued, appreciated, and invested in. This in turn builds morale and commitment to the team and the organisation. An organisation which does not communicate well, and which lives month by month, quarter by quarter on the other hand, does not build long-term employee loyalty.

Also Read: Are you a human resource?

Stronger team cohesion

A people-first culture fosters a sense of belonging and camaraderie across team members and across organisational functions. When individuals feel supported, cared for, and heard, they are more likely to collaborate effectively and build stronger relationships within and across teams. Values such as “better together”, ensure ultimately that the customer is the winner, because cross functional priorities and goals are better aligned in the pursuit of stickier customer relationships.

Enhanced communication

Open and honest communication is a hallmark of people-first cultures. Team members are encouraged to express and share their ideas, concerns, and feedback without fear. Such transparency leads to better communications within the team, closely aligned to the goals of the company. Emphasis on creating a ‘psychologically safe’ space thereby enhances the productive bonding of diverse and passionate individuals towards one aligned goal of winning for the organisation and it’s clients in the market.

Improved retention and talent acquisition

Organisations that prioritise their employees’ well-being tend to have lower turnover rates, as people who feel that their personal and professional needs are being met, have less reason to look elsewhere. It also helps to attract new talent through personal recommendations and good reviews (such as Glassdoor), in the market. Remember, in sales, your folks have developed networks and it is highly likely that they will frequently meet the competition across the course of a year at various events. Become the workplace your competitors want to work at.

Higher productivity and creativity

Employees in people-first cultures are more likely to bring their full selves to work, which leads to greater creativity and innovation. They are also more bonded to the mission, meaning they are more likely to go that extra mile in achieving team and organisational goals.

Also Read: Why HR tech will make Asia’s next unicorns

Better problem solving

In an environment where team members are valued and encouraged to be heard, problem solving becomes more effective. Diverse opinions are welcomed, often leading to more comprehensive and creative solutions, usually and critically, with more widespread buy-in. This also ensures that good ideas are encouraged, and can come from anywhere in the organisation, as all have a unified understanding and mission around winning in market.

Reduced stress and burnout

Prioritising the well-being of the team can help to reduce stress and prevent burnout. When backed by resources and support, they will also feel better equipped to manage the challenges of their roles.

Positive impact on performance metrics

Organisations with a people-first culture often see great improvements in key performance metrics such as customer satisfaction, sales, profitability, and great places to work surveys.

In conclusion, embracing a people-first, culture-driven approach to leadership can profoundly transform an organisation and its outcomes. While traditional metrics like sales figures provide immediate, quantifiable results, the long-term benefits of a strong, positive culture—enhanced morale, team cohesion, communication, retention, productivity, problem-solving, and overall well-being—are invaluable.

These elements collectively drive sustainable success, fostering an environment where employees feel valued and motivated to contribute their best. By prioritising people and culture, leaders not only build admired organisations but also achieve exceptional and lasting business results, proving that the most successful enterprises are those that invest in their people.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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