Feliz Año Nuevo

We all love January 1st.

We’ve set some New Year’s Resolutions and nothing can get in our way. We become like fans at the very beginning of a football season. Since nobody has lost, anything is possible. We’re all winners and those dreams of lifting the Lombardi trophy haven’t been shattered just yet.

However, reality kicks in pretty quickly and by February (or earlier for the majority of us) those New Year’s Resolutions became distant memories. Our focus shifts, and we find ourselves already contemplating our personal goals for the next year.

Midsize companies don’t have that same luxury.

As these companies aim for success in 2024, they must face a myriad of challenges: managing growth effectively, fully adapting to the post-pandemic world, navigating emerging technologies like AI and automation, attracting & retaining great talent, information overload….the list goes on.

Also, let’s not forget the pressure and expectations from investors adds extra layers of complexity. I love Jamba Juice just as much as the next guy, but the thickness of this juice will be harder to swallow and savor if it doesn’t include a key ingredient.

The Key Ingredient

Amidst the complexities of today’s business environment, the significance of fostering a well-designed workplace culture becomes even more apparent. It acts as a key ingredient in promoting resilience, enhancing employee satisfaction, and contributing to the overall well-being of the midsize company.

Here are 7 areas of focus where midsize company leaders & investors should look beyond conventional metrics when evaluating how robust a workplace culture is in shaping the overall strength and attractiveness of a company.

1. Employee Advocacy and Productivity

To effectively address the challenges outlined above, company leaders must evolve beyond conventional “engagement” standards and focus their attention on “advocacy”.

Empowering employees as advocates not only enhances the company’s external reputation but also fosters a sense of pride and purpose among the team, ultimately translating into greater productivity as employees are motivated to contribute their best efforts. Ask yourself,

• How often are they promoting the company’s products on social media, recommend the brand to friends, and participate in referral programs?
• Who is participating at industry conferences, speaking engagements, or online forums, showcasing their pride in the company’s achievements?
• Simply put, how and what are they sharing with family and friends around the weekend BBQ?

The response to these questions significantly influences a company’s ability to attain its goals and sustain growth—a pivotal consideration for attracting potential investors.

2. Attracting & Retaining the “right talent”

Too many companies get distracted by following the mirage of “top talent” when they should be focusing on the what’s in front of them. Attracting and retaining the “right talent” is a key consideration for midsize companies seeking investment. Ask yourself,

• Are we clearly articulating our company’s unique value proposition?
• Are we utilizing candidate, employee feedback and engagement data?
• Does our workplace culture align with employee values and expectations?
• Are we adapting to changing workforce trends and preferences?

A positive workplace culture, built on values, professional development, and work-life balance, not only draws in the right individuals but also positions the company for long-term success, aligning with investor expectations.

3. Innovation and Adaptability

Innovation is the lifeblood of success, especially for midsize companies navigating a competitive landscape. Ask yourself,

• Do we view innovation as an important initiative and a strategic priority?
• How often do we carefully consider new ideas from employees?
• Do we allow our teammates to fail quickly or are they punished?
• Are we avoiding the pitfall of choosing inaction out of fear of failing?

A culture that values creativity, open communication, and continuous learning will position the company as forward-thinking and resilient, qualities that investors consider crucial for long-term viability.

4. Risk Mitigation

Investors inherently assess risk when evaluating potential investments. Ask yourself,

• How do we actively integrate ethical considerations into its decision-making processes, and what specific initiatives or policies are in place to promote a culture of integrity?
• In terms of transparency, could you share examples of how your company communicates with stakeholders during challenging times or periods of uncertainty, and how this has positively impacted investor confidence in the past?

A well-designed workplace culture contributes to risk mitigation by promoting ethical behavior, transparency, and effective communication, instilling confidence in investors and ensuring the company can navigate challenges effectively.

5. Brand Reputation

Beyond the financials, a positive workplace culture contributes to a company’s brand reputation. Ask yourself:

• Can you share specific initiatives that showcase your company’s commitment to corporate social responsibility, diversity, and inclusion, and how these efforts have tangibly influenced your brand’s reputation and appeal to investors?
• How does your company align its business practices with societal expectations, and can you share specific instances where this alignment has positively influenced your brand’s reputation and market perception?

Investors recognize the impact of public perception on market value, making corporate social responsibility, diversity and inclusion, and ethical business practices essential components of a midsize company’s appeal.

6. Navigating Organizational Complexity & Scalibility Challenges: Fostering Unity and Core Values

Midsize companies often grapple with complex organizational structures, necessitating a strong workplace culture to align diverse teams and present a unified front to potential investors.

Ask yourself,

• How has your organization successfully maintained and even strengthened its core values, assuring investors of the company’s ability to scale without compromising its unique identity?
• What specific strategies or practices has your leadership implemented to strike a balance, fostering unity among diverse teams while preserving the company’s fundamental principles during periods of growth?

Simultaneously, scalability challenges in growth can dilute core values. Share insights into how your organization’s well-defined culture has served as a stabilizing force during rapid expansion, assuring investors that you can scale while preserving your unique identity.

7. Leadership Development: Inspiring the Next Generation of Leaders

As the leadership team expands, cultivating a positive culture becomes vital for developing effective leaders. Ask yourself,

• Have we created a safe enough environment where we can practice what we’ve learned and obtaining feedback from our leadership development program?   
• Have we immediately applied the concepts from the program onto the job and continued the feedback and improvement cycle?
• Overall, does our leadership development program align with the objectives of our business?

This not only contributes to overall organizational success but also signals to investors that the company is strategically preparing for future challenges and opportunities.

The playbook

As midsize companies strive for growth and seek investment, designing and building out a strong workplace culture should be at the forefront of their strategic priorities. It will have a major impact on employee advocacy, talent attraction/retention, innovation, risk management, brand reputation, organizational alignment, scalability, leadership development, and adaptability.

On January 3rd 2024 (the 1st real business day of the year), the new football season begins for teams (midsize companies) all across the globe. The playbook (workplace culture) that they have built and designed will determine whether or not they have a prosperous and fulfilling year on the field of dreams while capturing the attention and confidence of discerning investors.

Article was written by John-Miguel Mitchell who is a Lead Consultant at Ekipo LLC. If you’d like to learn more about how to design and build out the ideal workplace culture for your business, email him at jmitchell@joinekipo.com.