9 culture traits that hurt business performance hero
August 08, 2024 Marshall Bergmann, i4cp

Nine Culture Traits that Hurt Business Performance

Is your organization underperforming due to the economy—or something closer to home?

Threat of recession has loomed over businesses and CEOs in particular for the last several years. Many companies and industries have experienced multiple years of conflicting economic signals, inflation, wavering consumer demand, and job statistics that defy predictions. Throw in an incredibly divisive U.S. presidential election, an assassination attempt, and President Biden’s decision to drop from the race—it’s not the easiest time to forecast for the year ahead.

But for all those external factors, many business leaders may overlook something they have control over—something that when managed effectively can have immense positive impact on the bottom line—and when not properly addressed can have devasting effects on productivity, agility, and business performance.

It’s organizational culture.

As VP of Advisory Services at the Institute for Corporate Productivity (i4cp), I've seen firsthand how organizational culture can make or break a company’s performance. While I spend most of my time working with leaders to create healthy cultures that will serve the organization’s goals, sometimes it is important to look at negative side of culture—the traits research shows lead to poor performance.

i4cp’s in-depth research on Culture Renovation® and culture fitness has uncovered what we call The Toxic 9 —culture traits that most often explain an organization's poor cultural health. These aren't just minor irritants; they're serious performance killers that cost companies significantly.

In fact, i4cp’s data shows that companies exhibiting these traits reported 23% lower profit growth compared to their healthier counterparts. That's a number that should make any executive sit up and take notice.

So, what are The Toxic 9 traits? Let's break them down (you can also download more detail here):

  1. Bureaucratic
    I've seen countless organizations tied up in red tape, paralyzed by endless approvals and rigid processes. This strangles innovation and agility—two critical factors in today's fast-paced business environment.
  2. Non-inclusive
    In my advisory work, I've observed that when certain voices or perspectives are consistently left out, organizations miss out on valuable ideas and talent. Non-inclusive cultures foster disengagement and limit creativity.
  3. Disrespectful
    Time and again, I've witnessed how a lack of basic respect in the workplace breeds resentment and kills motivation. When employees don't feel valued, their performance and loyalty suffer.
  4. Chaotic
    Without clear direction and organized processes, employees waste time and energy. In my experience, chaos leads to frustration, mistakes, and missed opportunities.
  5. Complacent
    I've seen too many organizations rest on their laurels, only to be blindsided by market changes. Complacent organizations struggle to innovate and adapt in the rapidly evolving business landscape.
  6. Cutthroat
    When internal competition turns toxic, collaboration suffers. I've advised numerous companies where a cutthroat environment created a "win at all costs" mentality that ultimately hurt the entire organization.
  7. Hierarchical
    Rigid top-down structures can stifle communication and innovation. I've helped many organizations break down these barriers to allow good ideas to flow freely
  8. Insensitive
    Lack of empathy and emotional intelligence at any level can poison workplace relationships. Our research shows that insensitive cultures struggle with employee retention and engagement.
  9. Conflict Avoidant
    While harmony sounds nice, I've seen how avoiding necessary conflicts can lead to festering problems and unresolved issues. Healthy disagreement is crucial for growth and improvement.

Do any of these toxic traits exist in your organization? If so, it's likely the culture needs attention.

How to reduce toxicity

The good news is that organizations can successfully tackle these issues. The Toxic 9 are curable with the right focus and commitment—i4cp’s Culture Renovation® Blueprint lays out 18 steps on how to turn your toxic culture into a fit culture.

By following this blueprint (based on analysis of data gathered from over 7,662 business professionals from thousands of organizations worldwide) and eliminating these performance-draining behaviors, you can transform a toxic environment into a high-performance culture primed for business success.

Remember, a healthy culture isn't about feel-good initiatives—it's a critical driver of business performance. Our research at i4cp consistently shows that by addressing these toxic traits, organizations not only improve workplace satisfaction, they set the stage for improved innovation, productivity, and ultimately, profitability.

So, which of The Toxic 9 will you tackle first? Your company's future performance may depend on it.

If you need guidance on how to address these issues, that's what we're here for. Let's work together to create a healthier, more productive culture for your organization.