In challenging times, it is common for businesses to turn to their profit and loss statement to find ways to reduce costs and maximize profits. While this is an important step, it is crucial to also consider the impact on your team and company culture. Here's why:

The Destructive Effects of Their Strategy on Company Culture

In the world during and after the pandemic, many businesses are striving to recover. With fewer travelers and a new way of life, businesses have had to explore new operational methods to remain profitable. One industry that has been particularly affected is the airline industry.

The airline industry experienced significant challenges in 2020 and beyond due to restrictions that resulted in minimal or no revenue. This had a severe impact on the industry, leading to job losses, bankruptcies, and reduced operations.

Airlines that have resumed operations have sought ways to cut costs and streamline their processes. One approach was to eliminate crew layovers before flying back the next day, as this incurred expenses for hotels and overtime. Instead, they opted to have the crews fly directly back to work another shift.

While this may have appeared beneficial on the income statement, it had detrimental consequences for their business. The staff became overworked, and planes were pushed to operate on tight schedules to maximize profitability. As a result, there were flight delays, cancellations, and discontent among the staff, leading to dissatisfied customers.

Ultimately, this caused customers to switch to other airlines, resulting in the loss of the customer loyalty that the airline had spent years cultivating. Customers started seeking better prices and service from competitors.

The lesson to learn from this story is that strategy cannot be considered in isolation without taking into account company culture. The demanding schedules and overworked staff destroyed the camaraderie and positive atmosphere that customers enjoyed. Additionally, it led to reduced productivity and an increase in mistakes. All of this could have been prevented if the leaders had looked beyond the profit and loss statement.

Strategy Requires Collaboration

Having a strategy is essential, but without a team to implement it, it holds no value. Company culture plays a vital role in putting your strategy into action, differentiating your company, and transforming employees into brand ambassadors.

Instead of solely focusing on strategy, collaborate with your team to cultivate a happy work environment where everyone can thrive. Then, implement strategies that complement and support this environment, rather than undermining it.

Building Company Culture Starts with You

Improving company culture cannot be achieved solely through big bonuses. It encompasses much more than that – it involves feeling valued, heard, and appreciated, and creating a sense of belonging. Building a positive company culture takes time, but it can be destroyed in an instant.

By prioritizing your company culture, you will witness an increase in productivity and, consequently, profitability. Remember, businesses are built by people, so invest in building your employees' well-being and satisfaction!