What does it mean to have a high-performance culture?

In a high-performance culture, all aspects of business operations are designed to support the success of employees, teams and the company as a whole. Internal systems—leadership, performance management, communications, employee recognition, etc.—are both functional and effective. What’s more, employees generally have everything they need to be both productive and innovative in terms of skills, tools, resources, training and support.

Elements of a high-performing culture include:

• Transparency
• Trust
• Inclusivity
• Respect
• Open communication
• Employee autonomy
• Effective management
• Continuous learning and development
• Commitment to company values

Why does a high-performing culture matter?

Building a high-performing culture is a long-term commitment that requires time, resources and leadership buy-in. This investment can improve every aspect of your business:

• Employees feel empowered to develop innovative solutions
• Teams work together to support company objectives
• Job satisfaction and employee retention rates rise
• Productivity increases, boosting both revenue and profits
• HR has an easier time recruiting and hiring new employees

In other words, your company runs smoothly, and employees at all levels have a positive experience. These conditions can make it easier to grow the business and pursue ambitious goals.

Creating a high-performance culture: action steps

Employee performance depends on a variety of factors, including the quality of your managers and the way you show appreciation for workers. As you get started, it’s helpful to assess your current culture. Survey the workforce, interview employees and observe interactions to identify the biggest areas for improvement. That way, you can distribute resources wisely and maximizeROI.

1. Provide management training

Your managers have a significant impact on the employee experience. In fact, Gallup found that managers are the most important factor in employee performance and engagement.

Focusing on building a stronger management team can help you create a high-performing culture:

• Help managers identify and work to their unique strengths
• Provide training in communication, conflict resolution, leadership styles and performance management
• Ensure that managers are well-versed in high-level company objectives, operations, strategies and revenue drivers
• Create a mentorship program to support and develop managers
• Teach managers to identify and avoid micromanaging
• Evaluate supervisors regularly and solicit feedback from their direct reports

2. Invest in employee development

Show your employees that you’re invested in their success by providing training and development opportunities. A balanced training strategy can benefit both the company and individual employees by targeting three key areas:

• Current jobs: Boost employee performance with training that helps them work safely, efficiently and with fewer errors.
• Future needs: Train workers on emerging equipment, technologies or methodologies to prepare them for upcoming operational shifts. This strategy can help ensure their performance stays high throughout periods of change.
• Career goals: Expand employees’ skill sets by allowing them to choose training courses that suit their professional ambitions.

Adequate training can help employees feel confident and capable; it also ensures they have the necessary skills to perform at a high level. When workers are free to pursue topics of personal interest, they may feel more enthusiastic, motivated and appreciated. These positive feelings can boost job satisfaction and retention rates, which improves performance over the long term.

3. Establish clear goals and metrics

Goals are critical to a high-performance culture—after all, employees can’t perform well unless they know what you expect of them. Ask your management team to work with employees to develop SMART goals that are:

• Related to the employee’s job and individual career aspirations
• Connected to the team and company objectives
• Realistic and achievable within a given time frame

For each goal, identify one or two metrics employees can use to measure their progress. That way, team members don’t need to wait for manager feedback or quarterly reviews; they can identify weak areas and take action to improve performance independently.

4. Encourage regular communication

Observe a high-performing team, and you’ll notice they communicate openly and honestly. To build the same tradition in your business, create a culture where employees feel comfortable expressing new ideas, asking questions or seeking support.

Implementing these strategies can help you encourage open communication:

• Adopt a “no bad ideas” policy
• Show respect to everyone
• Ask for employee feedback regularly
• Take action on employee feedback
• Seek input from all team members in meetings
• Check in on employees regularly

Keep in mind that change starts from the top. Encourage your managers and leaders to be honest and transparent, especially when it comes to problems and challenges the company is facing. This process can help build trust, so workers can feel safe enough to communicate freely.

5. Rethink performance reviews

Done well, performance reviews can be transformative tools for growth. Even so, McKinsey research found that just 46% of employees see positive results from their employers’ performance management strategies.

Making a few improvements can help you create a review system that inspires and motivates workers:

• Replace annual reviews with regular manager coaching and feedback sessions
• Collect data to reduce bias and measure performance objectively
• Incorporate both manager and peer feedback
• Work with employees to develop strategies and goals

With a process that’s collaborative and supportive rather than adversarial, you can help all of your employees succeed.

6. Recognize and appreciate employees

Recognizing your employees can be a powerful (and affordable) way to cultivate a high-performance culture—everyone wants to feel like their work matters. Employee recognition can help improve performance, boost retention, reinforce positive behaviors and build confidence among team members.

You can help make appreciation part of your company culture by:

• Providing positive feedback that’s both specific and personalized
• Recognizing ideas, innovations, traits and accomplishments
• Offering informal recognition on a daily basis
• Implementing formal recognition programs for meeting targets, work anniversaries and other accomplishments
• Praising teams and individuals publicly

To help build an inclusive and equitable culture, make sure that you bestow recognition equally.

7. Help employees find purpose

Employees are longing for work that feels fulfilling, especially post-pandemic. A 2021 survey found that 89% of employees want a sense of purpose, and 70% derive purpose from their jobs. If you can meet this need, you’re likely to see higher levels of pride, commitment, achievement and connection in the workforce.

As an employer, you can take steps to create a more meaningful employee experience, such as:

• Showing employees how their work impacts the company as a whole
• Ensuring that corporate actions line up with core company values
• Contributing to the community with team volunteer days or charity drives
• Establishing positive social and environmental practices
• Encouraging cross-training to help employees meet their personal goals

If you’re serious about taking your business to the next level, building a high-performing culture can help. With a strong commitment and continuous investment, you can create an environment that attracts, cultivates and retains top talent and encourages company growth.