By Dr. Jamie Shapiro
Engagement scores diagnose outcomes, not causes. Leaders must model the behaviors that create engagement, not survey it. Culture starts at the top: what leaders reinforce and tolerate becomes truth. Focusing on five core drivers—connection, candid communication, clarity, collaboration, and contribution—is what creates sustained performance and engagement.
Engagement is one of the most commonly used organizational metrics for the health of a company’s culture; however, CEOs increasingly recognize that only measuring engagement falls short of creating real cultural transformation. Why is that?
Because measuring and getting results about the level of people’s engagement is not enough to improve it.
Engagement is defined as the emotional connection and commitment a person has to their job, team, and organization. It’s an outcome that all companies strive to achieve because a highly engaged team is more productive, with positive morale and high retention. Sadly, engagement has fallen flat in 2022, 2023, and 2024, remaining below pre-pandemic levels.
In the first quarter of 2024, US engagement hit an 11-year low, with a slight improvement in the second quarter of 2024, according to Gallup. The reality is that organizations can’t simply measure engagement and expect different results. I often speak with leaders who are concerned about low engagement scores but don’t have a complete understanding on why they go up or down each year. Without this knowledge, they don’t have assurance that the engagement initiatives they focus on will make a difference. The problem is that they haven’t measured the key levers that move the needle to improve engagement.
To explain this concept, my colleague and partner in the creation of the 5Cs Model, Principles CEO Zack Weider, shares the metaphor of the “swing versus the shot.” If you’re a golfer, you know that you won’t improve your game by only looking at your score at the end of each round (that is, how many good or bad shots you hit). You improve your game by focusing on the mechanics of your swing and improving your technique. The quality of each shot will vary depending on a number of factors, but the way to make all of your shots better over time is by focusing on your swing.
Organizations struggle to improve engagement because they keep measuring whether they played a good or bad round (as in their annual engagement), rather than focusing on the actual swing (as in the fundamental elements that are driving it and can lead to better outcomes).
To transform culture, companies must understand and measure the elements that create highly productive and cohesive teams and thriving cultures. Given this picture, it’s no surprise that about 70 percent of culture transformations fail, according to McKinsey.
Culture Starts at the Top
How you and your team show up daily and interact with one another and the organization as a whole set the tone. As CEO, your behavior becomes culture. What you reinforce, what you tolerate, and how you respond all signal what your team takes as truth. What constitutes organizational culture? The mission, vision, purpose, and core values are often included. These elements are the visible aspects.
There are also invisible elements—such as norms, beliefs, and practices—that are equally important but aren’t always given attention. They drive how work gets done. The culture must be experienced day-to-day to be most impactful. This includes rewarding people for demonstrating behaviors that align with it. When individuals aren’t living the culture and being rewarded for the associated behaviors, there is a disconnect.
For example, when leaders speak to their teams about the importance of taking time to recharge from work, yet frequently expect them to respond to emails during evenings and weekends, it sends a conflicting message. This can be based on a disconnect between the invisible and visible cultural elements. The leader’s message is
based on what the culture says it stands for, the visible aspects, yet the leader’s actions reveal how the culture actually operates, the invisible aspects.
Defining the core values and behaviors you want to see in your organization is not enough. You and your team must embody them every single day. The spotlight is on you. I know this is a lot to handle, but it is the reality of leading a company. It’s why you chose to be a leader: to create an impact that aligns with who you are.
Research consistently shows that the behavior of senior leadership directly impacts organizational performance and culture. Studies from McKinsey indicate that companies with cohesive leadership teams are 1.9 times more likely to outperform competitors and 1.7 times more likely to have higher levels of organizational health. Additional research from Russell Reynolds Associates supports that when CEOs and C-suite teams model desired cultural values and operate cohesively, they set a mirrored standard in the organization, leading to enhanced performance, employee engagement, and overall success.
A report by the Society for Human Resource Management (SHRM) in 2019 found that toxic workplace cultures caused 58 percent of employees to quit their jobs. This turnover cost US employers approximately $223 billion over five years. The SHRM report also highlighted that toxic cultures adversely affect employee well-being, decreasing productivity and increasing absenteeism. Employees in such environments are more likely to experience stress and burnout, further impacting organizational performance.
Eagle Hill Consulting surveyed C-suite leaders and found that 72 percent of executives agreed that corporate culture impacts financial performance. Still, less than half (46 percent) hold themselves and their teams accountable for the culture. This research indicates a disconnect between the importance executives place on team and culture and the investments and actions they make.
I often share with leaders that it is essential to focus on controlling the controllables. The good news is that creating a high-performing, cohesive team and thriving culture is within your control. It is something you can positively impact every single day. It takes intentionality, focus, and care. When executive teams work seamlessly together, modeling effective collaboration for the organization, it creates a positive ripple effect. Ultimately, the executive teams that function at peak levels deliver superior results and have the workplaces and cultures that people want to be a part of.
That’s where The 5Cs of Team Cohesion and Thriving Organizational Culture comes into play (connection, candid communication, clarity, collaboration, and contribution). While each is critical, leaders can start by focusing on Connection.
Based on our research, the best work comes from teams and organizations that foster human connection with a foundation in trust and care. Build trust through developing strong, connected relationships. Add meaningful check-ins to the beginning of conversations. Connection is where momentum begins.
When leaders slow down just enough to truly see and hear their people, trust grows and with it, the conditions for better decisions, stronger performance, and more sustainable success.
Parts of this piece have been adapted from Connected Culture: The New Science for Thriving Teams and Cultures (IdeaPress).
