Why shifting from a transactional culture to a culture of collaboration is critical now and how you can start today

Published on LinkedIn October 1, 2022

Organizational culture is the set of shared beliefs, values, and norms that guide how employees act within an organization. It includes everything from the way employees dress and interact with each other to the way they make decisions and handle conflict. Organizational culture can either help or hinder an organization’s ability to achieve its goals. A positive organizational culture can improve employee morale and motivation, foster teamwork and collaboration, and encourage innovation and creativity. On the other hand, a negative organizational culture can lead to high levels of turnover, absenteeism, and low productivity. That’s why it’s so important for leaders to deliberately create a positive organizational culture that supports their business goals. To do this, they need to be aware of the current culture within their organization and be prepared to make a shift if necessary. By transforming their organizational culture, leaders can build a more positive and productive workplace for all employees.

Organizational culture can be transactional or transformational. In a transactional culture, staff are focused on carrying out tasks and there is little room for innovation or improvement. The emphasis is on compliance and following rules. Staff are expected to stick to the agreed-upon procedures and there is little room for creativity or deviation. This mode of culture can be found in many organizations, especially those that are risk-averse or that place a high value on consistency.  This can produce a negative work environment where staff are not motivated to go above and beyond.

In contrast, a transformational culture is one of collaboration and continuous improvement. Staff feel empowered to suggest new ideas and take initiative to implement change. This type of culture is more likely to result in high levels of employee engagement and satisfaction. Transformational cultures are often associated with successful organizations that are able to adapt and thrive in changing environments. transactional cultures, on the other hand, often struggle to keep up with the pace of change and can eventually become stagnant.

Steps to take to start change today

As any business leader knows, organizational culture plays a vital role in determining the success of a company. A positive, healthy culture can improve employee morale and motivation, foster creativity and innovation, and lead to better overall performance. On the other hand, a negative or toxic culture can poison the working environment, stifle creativity, and ultimately lead to poorer outcomes. If your organization is currently struggling with a transactional culture, there are steps you can take to improve the situation. Here are four tips for transforming your organization’s culture:

1. Define your values and communicate them to your employees. What does your organization stand for? What do you want your employees to believe in? Articulating these values will help to shape the culture of your organization and give employees direction and purpose.

2. Encourage open communication and feedback. A key element of a transformational culture is trust. Employees need to feel like they can openly communicate with their managers and provide feedback without fear of retribution. Encourage employees to speak up and listen to their ideas.

3. Promote creativity and innovation. A transactional culture often stifles creativity because employees are focused on meeting pre-determined goals rather than thinking outside the box. To encourage creativity, give employees the freedom to experiment and take risks. Recognize and reward creative thinking.

4. Foster a sense of community. A strong sense of community can improve employee morale and provide a support system during difficult times. To build community within your organization, encourage employees to get involved in company-sponsored activities or charity work. You could also host regular social events or offer employee discounts on products or services.

 Implementing these steps will help to improve your organizational culture from transactional to transformational. Creating a positive, healthy workplace environment is essential for attracting and retaining top talent, fostering innovation, and achieving long-term success.

A transformational organizational culture can bring benefits such as increased employee productivity, creativity, and innovation. In a culture of collaboration, employees are more likely to share ideas and work together to solve problems. This can lead to a more productive workforce, as well as new and innovative solutions to challenges. Additionally, a transformational culture can help to attract and retain top talent. Employees who feel valued and engaged are more likely to stay with an organization, which can save on costs associated with turnover. Transformational cultures can also improve customer satisfaction and loyalty, as employees who feel empowered are more likely to deliver excellent service. Ultimately, a transformational organizational culture can provide a number of benefits that help an organization to thrive.