Coaching

Building High-Performing Cultures

The Power of Transparency, Authenticity, and Inclusion
Josh Rosenberg
Published on
11.9.2024

Introduction

Creating a high-performing culture is one of the most critical challenges for today’s business leaders. In a rapidly evolving world, culture is not just a company’s values on a wall—it’s the daily behaviors, practices, and interactions that shape the experience of every employee. Recent research and case studies point to three pillars as essential to a thriving, high-performance culture: transparency, authenticity, and inclusion.

 1. The Foundation of a High-Performing Culture

At its core, a high-performing culture is about fostering an environment where employees feel valued, engaged, and motivated to contribute their best. But what is culture? According to a report from the Center for Executive Coaching, culture is defined by “norms about behaviors that are encouraged and accepted, and those that are discouraged and rejected”. These behaviors are reinforced by leadership, structures, incentives, and how work gets done. Companies that focus on defining and building the right culture consistently outperform their competitors.

A high-performing culture thrives when its foundation is built on trust, communication, and shared goals. But how do transparency, authenticity, and inclusion play into this equation?

 2. Transparency: Building Trust and Accountability

Transparency is about more than sharing financial reports; it’s about open communication at every level of the organization. Research shows that employees in transparent environments are more engaged, motivated, and productive. According to a recent study by Slack, 80% of employees said they want transparency from their leaders regarding decisions that impact them, and organizations with a high level of transparency are more likely to build trust with their workforcE..

Transparency fosters a sense of ownership and accountability across teams. When employees understand the company’s goals, challenges, and strategic direction, they are more likely to align their efforts to those goals. Moreover, transparency during difficult times, such as handling failures or setbacks, builds credibility with employees and shows them that the company prioritizes integrity over perfection.

Practical Steps for Building Transparency:

- Frequent communication: Leaders should regularly share company updates, goals, and progress in all-hands meetings, newsletters, or internal communications platforms.

- Open-door policy: Encourage employees to voice concerns or offer feedback directly to leadership, fostering a culture where all voices are valued.

- Share decision-making processes: Help employees understand the "why" behind key decisions, particularly those that impact teams directly.

 3. Authenticity: Leading with Integrity

In the digital age, employees expect their leaders to be authentic—leaders who are genuine, approachable, and clear about their values and motivations. A study by Harvard Business Review found that employees are 3.5 times more likely to be engaged in their work when they believe their leaders act with authenticity.

Authenticity leads to stronger relationships between leaders and employees. When leaders are open about their own challenges and show vulnerability, they create an environment where employees feel comfortable being themselves. This authenticity drives loyalty and trust, helping build a resilient culture capable of weathering challenges.

Case studies such as the transformation of Alcoa under CEO Paul O’Neill highlight the importance of authentic leadership. When O’Neill took the helm, he prioritized employee safety, making it a company-wide mission. His genuine commitment to this goal not only improved safety measures but also fostered a deeper trust between leadership and employees.

Ways to Lead with Authenticity:

- Model vulnerability: Share both successes and failures with the team to create a culture where it’s safe to take risks and learn from mistakes.

- Consistency in actions and words: Ensure that your leadership decisions reflect your values and that employees see you following through on commitments.

- Encourage authenticity at all levels: Create an environment where employees feel comfortable expressing their true selves and ideas.

 4. Inclusion: Fostering Belonging and Innovation

A truly high-performing culture is one where every employee feels included. Inclusion goes beyond diversity—it’s about creating a sense of belonging and ensuring that every voice is heard and valued. According to a report from Deloitte, inclusive workplaces are 6 times more likely to be innovative and agile. When employees feel that their perspectives are respected, they are more likely to contribute innovative ideas and collaborate effectively.

Inclusion is also linked to improved employee engagement. A study from Gallup shows that companies with high levels of inclusion have 22% higher profitability and 21% higher productivity than those that lack inclusive practices.

Companies that succeed in building inclusive cultures focus on breaking down silos, encouraging cross-functional collaboration, and implementing policies that promote equity. Additionally, fostering inclusion is not just a top-down initiative—it requires creating opportunities for employees to connect, mentor, and support each other.

Strategies for Building Inclusion:

- Create diverse teams: Encourage cross-departmental collaboration to bring diverse perspectives to problem-solving and decision-making.

- Offer mentorship and sponsorship: Help underrepresented employees find mentors or sponsors within the company who can guide their career growth.

- Ensure fair policies: Regularly review hiring, promotion, and compensation practices to ensure they support inclusivity and equity for all employees.

 5. The Impact of a High-Performing Culture on Business Outcomes

When organizations cultivate a culture that emphasizes transparency, authenticity, and inclusion, the results speak for themselves. Companies with strong cultures are more agile, innovative, and better equipped to handle challenges. Moreover, a strong culture boosts employee retention, as workers are more likely to stay in environments where they feel valued and respected.

Research conducted by Groysberg, Lee, and colleagues identified the cultural values most often associated with successful companies. Results-oriented and caring cultures were reported as the top drivers of success across industries. These cultural attributes are consistent with transparency, authenticity, and inclusion—key factors in creating environments where employees feel motivated to contribute their best.

Conclusion: Culture is a Leadership Responsibility

Building a high-performing culture doesn’t happen overnight. It requires commitment from leadership to model the behaviors they want to see and to consistently communicate the vision. Leaders must create environments where transparency, authenticity, and inclusion are not just buzzwords, but integral parts of the company’s DNA. By doing so, they foster trust, engagement, and a strong sense of community within their workforce.

The next step for leaders looking to build such a culture is to ensure that they have clear systems in place for tracking progress, measuring outcomes, and adjusting strategies as needed. Cultures evolve, but with the right foundations, they can be a driving force for sustained success and innovation.

In our next blog, we will explore how leaders can measure and sustain cultural transformation, ensuring that high-performance cultures continue to thrive. Stay tuned for actionable strategies to track and reinforce cultural progress within your organization.

 

This blog sets the stage for understanding how transparency, authenticity, and inclusion play critical roles in building a high-performing culture. By focusing on these three pillars, leaders can create an environment where employees feel valued, motivated, and empowered to contribute to the organization’s success.  Be on the lookout for our thoughts on Effective Change Management in our next blog series.  

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Josh Rosenberg
Founding Partner