Nurturing Company Culture: A Love Story   1

          Company Culture:
          A Love Story

          Helping to Make
          Your Company
          a Great Place to Work
Nurturing Company Culture: A Love Story                                                                    2

Introduction                                                                   The ARTICLES
                                                                               3 // Culture’s Most
       Welcoming a new employee into your company is the                            Important Ingredient
       beginning of a relationship. And like any relationship,
                                                                                   Guest blogger Susan Piver shares her
       we show new employees our best face and then we
                                                                                   insight on how it is relationships—
       hope that when the bloom is off the rose, they will                         not perks—that really drive a
       love and not leave us.                                                      great culture.

        The success of that relationship is entirely dependent on the          6 // 8 Cognitive Biases That Will
        atmosphere we create for them to work in. Are you building a                Make or Break Your Culture
        supportive culture of appreciation, or is your office space seething
                                                                                   Some advice for managers on how
        with bitter undercurrents?
                                                                                   to sidestep dangerous pitfalls in our
        This collection of some of our most popular blog posts will offer          thinking.
        you some constructive advice and actionable tips on how you can
                                                                               10 // The Science of
        build a company culture that will inspire passion and commitment
        from your employees.
                                                                                     Gratitude and Well-Being
                                                                                   This article unpacks the proven
                                                                                   benefits scientists have discovered
                                                                                   from having happy employees.

                                                                               14 // 5 Tips to Create
                                                                                     Happier Employees
                                                                                   How can you make your employees
                                                                                   happier? Here are five tips.
Nurturing Company Culture: A Love Story                                                                 3

Culture’s Most
Important Ingredient
By Susan Piver, Guest Blogger

I once worked at a super hip downtown NYC
entertainment company as manager of a new division.
Before you reached our floor, you could hear the
music booming from the lobby. Upon getting off the
elevator, you might have wondered if the receptionist
was going to take your name or offer you a cocktail.

                      When you walked to your office, you might   It was also the unhappiest place I ever       Scratching the surface of this super
                      see a fashion model or the next Jay-Z. We   worked. Despite the trappings, the space      luxe, ultra groovy, majorly happening
                      had our own enormous health club, which     was filled with discomfort, condescension,    environment, you found the real culture:
                      was probably the most sophisticated         and arrogance. Weekly meetings to discuss     aggressive and fearful.
                      workout space below 23rd Street. We had     new ideas were stiff and agonizing and
                      three spa-like treatment rooms and every    feedback was based on indeterminate and       While the most interesting, forward-
                      single employee got a weekly 30-minute      seemingly capricious measures. No one         thinking companies place great emphasis
                      massage. When you told people who your      wanted to take any chances so of course       on culture, efforts often focus on
                      employer was, they were jealous. Everyone   there was no innovation. The gym was          appearances or management theories
                      wanted to come to our parties.              empty because no one wanted to risk           rather than on the creation of honest
                                                                  being seen in less than perfect shape.        relationships that create actual community.
                                                                  People were always trying to palm off their
                                                                  massages, because we were too scared
                                                                  to stop working and we just wanted to
                                                                  get out of there.

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Nurturing Company Culture: A Love Story                                                                     4

A quick Google search on “how to
create a great corporate culture” reveals
these suggestions from the likes of Inc.,
Forbes, and HBR:

• Invite people to throw wadded-up pieces
                                              Some of these may be really fantastic ideas,
   of paper at you when you say something     but they won’t ensure you a great culture.
   wrong in a meeting.

• Work in a big open space where no one
   has a personal chair or work surface or
   continually rearrange where people sit.    Some of these may be really fantastic ideas,   feel engaged when they are acknowledged.
                                              but they won’t ensure you a great culture.     Acknowledgement doesn’t mean praising
• Post a corporate dream map to inspire                                                     or agreeing. It simply means taking an
   people forward.                            At best, they set the stage for great          interest in the other person’s point of view
                                              culture to (hopefully) arise and at worst,     and offering a clear response. If you find it
• Instill camaraderie by making people run   they are unsustainable gestures meant          praise-worthy, an interesting conversation
   up and down steps to show them what it     to game culture rather than create             can arise. If you find it off-target, a different
   is like to do their best.                  something genuine.                             interesting conversation can happen.
                                                                                             If it makes you angry, upset, delighted,
• Know your “wow factor.”                    In my experience, when people talk about       or confused—these too can be interesting.
                                              what a great place their company is, they      Nothing is off limits and people feel
 Make it hard for people to get a job         don’t usually mention fun outings or office    trusted and appreciated.
 there by telling them how much will be       design. They don’t even mention money.
 expected of them that they’re probably       They talk about how engaged they are.          Openness and trust may or may not
 not up to, so when you hire them, they’ll    How much they are learning. How proud          be your cup of tea—but if you want to
 work extra hard to prove themselves.         they are to have a seat at the table. People   innovate, if you want creativity, if you
                                              feel engaged not when they are agreed          want breakthroughs, you are going to
• Work on the beach; take singing lessons    with, but when they are listened to. People    have to develop a taste for them. Without
   together; install a bell to ring when a
   sale is made; help people get more
   sleep; have fun games, snacks,
   and surprising furnishings.

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Nurturing Company Culture: A Love Story                                                                         5

         openness and trust, you will only get          But if you want to create a workplace             Engagement is what leads to a culture that
         defensive turf-protection rather than bold     that changes people’s lives and the way           is vital, innovative, and invested in absolute
         new thinking. Openness and trust don’t         business is done, that leads to products          success. It is personal, it is human, and it
         come from running up and down steps or         and services that are mind-numbingly              is genuine. After all, these are the values
         throwing wadded-up pieces of paper. They       innovative and powerful, culture can’t be a       leading-edge companies espouse for their
         come from connecting, person to person,        device. It has to be lived. For it to be lived,   marketing campaigns and they take root in
         over and over, and sustaining that             you’re going to have to open your heart           the way we treat each other. So keep those
         connection when there is agreement and         to the people around you and engage               singing lessons and massages coming, but
         when there is confusion.                       both their intelligence and their confusion       try to make authentic relationships
                                                        with equal confidence.                            with the actual humans you work
         When we say we want to create a flourishing                                                      with along the way.
         corporate culture, we each have to ask         I believe that as we go forward, we will see
         ourselves if this is really what we mean. If   that success belongs not to the cleverest         Described as “a deeply intuitive and
         “culture” is a device we are employing on      or the most charismatic but to those who          innovative thinker,” guest blogger Susan Piver
         the quickest route to success and profits,     know how to care. To connect . To extend          is a speaker, thought leader, and New York
         no problem. Just recognize it for what it      themselves authentically. Thus your ability       Times best selling author who has devoted
         is. Hopefully, you will end up with a good     to create culture is not so much about what       her life to creating techniques that solve
         reputation and a lot of money.                 you say or how you design your space. It is       the problems of communication at work. In
                                                        about who you are.                                2011, she founded The Open Heart Project, a
                                                                                                          worldwide mindfulness community with over
                                                                                                          ten thousand members.

Engagement is what leads
to a culture that is vital, innovative, and invested in
                                                     absolute success.
Nurturing Company Culture: A Love Story                                                                     6

8 Cognitive Biases That Will
Make or Break Your Culture
By Darcy Jacobsen

In HR we often rely on common sense. But there                                           By understanding cognitive
is a dark side to common sense that HR needs to                                          biases, you can both protect
stay aware of. Sometimes our instincts will steer us                                     against them, and sometimes
the wrong way. Behavioral psychologists call this                                        use them to your advantage.
“cognitive bias”. It will affect perceptions, it will affect
objectivity, and it will affect relationships—in both
positive and negative ways. That makes it very relevant
to culture management and to you.                                 Cognitive biases are something most              of qualifications, better looking people are
                                                                  of us cannot avoid. But once you know            hired more often.
                                                                  how to spot them, you can see them all
                                                                  around you. They are the instinctive leaps       This little bit of everyday irrationality—
                                                                  our minds make—our gut reactions and             caused by patterns in our memory, our
                                                                  things we “know”, though we’re not sure          need to rationalize what we see, and the
                                                                  how we know them. Scientists believe they        human desire to build patterns out of
                                                                  are a relic of evolution: little shortcuts       information—is a sort of shorthand of the
                                                                  programmed into our minds to help us             brain that distorts reality and causes flaws
                                                                  process faster. But they sometimes lead us       in our judgment.
                                                                  just as quickly to the wrong conclusions.
                                                                                                                   You can see, therefore, how spotting
                                                                  Here’s an example: Under the “Halo Effect”       and understanding cognitive bias in your
                                                                  bias, we tend to lump together positive          own thinking is a very useful skill for HR.
                                                                  qualities, and assume where one attractive       But even more useful is identifying and
                                                                  quality exists, others also exist. This is why   managing them when they are affecting our
                                                                  we often assume that attractive people are       organizational culture. By understanding
                                                                  also more talented, more competent, or           cognitive biases, you can both protect
                                                                  more cooperative than their less attractive      against them, and sometimes use them to
                                                                  counterparts. This bias is why, regardless       your advantage.
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Nurturing Company Culture: A Love Story                                                                   7

Here are eight common cognitive biases you might
want to look out for in your organization:

                        The Bandwagon                              Hyperbolic                                     The Ingroup
                        Effect                                     Discounting                                    Bias

                People tend to go along with what           When presented with two similar rewards,       People naturally polarize into groups.
                other members of a group are doing.         people show a preference for the one that      This bias means people tend to view
                (Also known as the Herd Mentality.)         arrives sooner rather than later.              “their” group as better, while outsiders are
                                                                                                           collectively viewed as inferior.
                What it means to you: If you can get the    (To test this, ask around your office
                “herd” going in the right way, or give      whether people would prefer $50 now or         What it means to you: To avoid the
                the perception that it is moving that way   $75 a year from now—or how about $100          negativity, competition and roadblocks
                by gaining influential champions for        five years from now? Studies have shown        associated with polarization, do what you
                your projects, you have a better chance     that overwhelmingly people will take           can to homogenize, tear down silos and
                of gaining participation throughout         the money now, because they perceive           make your company feel like it is one big
                your organization.                          a greater value.) People—and indeed            group, not a collection of fiefdoms or
                                                            animals—have been proven to discount           opposing teams.
                                                            the value of a later reward by a factor that
                                                            increases with the length of the delay.

                                                            What it means to you: When providing
                                                            recognition and rewards that you wish to
                                                            make a strong impact, be sure to deliver
                                                            those awards quickly, so that they are in
                                                            hand while their impact is strongest—
                                                            as close as possible to the event that
                                                            inspired them.
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Nurturing Company Culture: A Love Story                                                                    8

        The Confirmation                               Mere-Exposure                                The Negativity
        Bias                                           Effect                                       Bias

People tend to ignore information which         People tend to develop a preference for      People pay more attention to and give
does not fit with their beliefs while they      things merely because they are familiar      more weight to negative rather than
weigh agreeable information more heavily.       with them.                                   positive experiences and information.

What it means to you: This is a great bias to   What it means to you: By increasing          What it means to you: This bias is why
remember when performance review time           frequency of exposure to a concept within    the “feedback sandwich” has grown in
rolls around. Managers will be creating         your organization, you will have a better    popularity. While sandwiching criticism
evaluations that fit with their beliefs         chance of increasing acceptance and even     within praise is somewhat controversial,
about employees, and possibly discarding        preference for that concept. For example,    there is no doubt that increased positive
critical information. Make sure you             repeated exposure to company values can      interactions within your organization can
provide managers with as much diverse,          help to ingrain those values in the hearts   help counteract this powerful and morale-
crowdsourced data about employee                and minds of employees.                      killing bias.
performance as possible, to avoid a single
point of failure around this bias.

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Nurturing Company Culture: A Love Story                                                                   9

         System                                      The Spacing
         Justification                               Effect

People will defend and prefer the status      Information is better recalled if exposure to
quo, seeing it as better, more legitimate,    it is repeated over a longer span of time,
and more desirable than new alternatives.     rather than occurring only once or grouped
                                              together in time.
What it means to you: This bias intensifies
when a system is under threat and explains    What it means to you: This means that
why change often comes hard within            your initiatives should be focused on long-
organizations. People have a cognitive bias   term, iterative campaigns and programs
that prefers the system they already have.    to induce change, with many “touches”
Sensitivity to this bias when implementing    to encourage learning and information
change is critical. Be sure you account for   retention, rather than one-time, “big-bang”
this natural resistance, give employees       events, awards or announcements.
a chance to air their concerns, and offer
assurance and strong evidence to support
planned changes in your organization.

                                                                                              Look for ways to spot and
                                                                                              eliminate these biases with in your
                                                                                              organization and keep your culture
                                                                                              strong and positive.
Nurturing Company Culture: A Love Story                                                                 10

The Science of
Gratitude and Well-Being
By Darcy Jacobsen

Regularly expressing gratitude is amazingly good for
us—and by extension our workplaces— in more ways
than we might realize.
                                                               Gratitude comes in many forms.               Here’s the evidence:
                                                               Researchers of gratitude define it as:
                                                               “an emotion which occurs after people        Gratefulness Increases Emotional
                                                               receive aid which is perceived as costly,    Well-Being
                                                               valuable, and altruistic,” or “an emotion
                                                               that (is) directed towards appreciating      A 2007 study published in the Journal
                                                               the helpful actions of other people,” or     of Research in Personality found that
                                                               even “appreciation of one’s abilities, or    “gratitude is uniquely important to
                                                               of a climate in which such successful        well-being and social life.” That study
                                                               work (is) possible.”                         showed a relationship between gratitude
                                                                                                            and well-being that was independent
                                                               No matter how one defines it, one thing      of personality factors (extraversion,
                                                               is clear, feeling and expressing gratitude   neuroticism, openness to experience,
                                                               yields side benefits for our emotional and   conscientiousness, or agreeableness), and
                                                               physical well-being. For your employees,     proved that over time gratitude leads to
                                                               this can translate into:                     lower stress and depression and higher
                                                                                                            levels of social support. The authors of the
                                                               • A more positive workplace                  study call for therapists to employ gratitude
                                                               • Happier, more optimistic employees         as a clinical tool, saying: “giving people the
                                                               • Lower stress                               skills to increase their gratitude may be as
                                                               • Better teamwork                            beneficial as such cognitive behavioral life
                                                               • A culture of helpfulness                   skills as challenging negative beliefs .”
                                                               • Lower absenteeism and better
                                                                  physical health

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Nurturing Company Culture: A Love Story                                                                       11

Grateful People Get Along
Better with Others

A paper published in 2009 in the Clinical
Psychology Review by researchers from
Hofstra and several UK universities
claims that people who express gratitude
are more extroverted, agreeable, open,
conscientious, and less neurotic. The          Grateful People Sacrifice
study suggests that gratitude is associated    for the Greater Good
with habitual positive well-being and a
wide variety of adaptive personality traits    In a study published in 2010 in the American
conducive to developing and maintaining        Psychological Association Journal Emotion,
positive relationships:                        researchers found that “gratitude functions     Grateful People Sleep Better
                                               to enhance cooperative as opposed to
“Grateful people were less angry and           selfish economic behavior.” Even when           A 2012 study from a group of Chinese
hostile, depressed, and emotionally            dealing with strangers, and no prospect of      researchers looked at the combined effects
vulnerable, (and) experienced positive         reciprocity, the subjects who were grateful     of gratitude and sleep quality on symptoms
emotions more frequently. Gratitude was        made their decisions based on what was          of anxiety and depression. They found that
also correlated with traits associated with    good for the group—even when it was             higher levels of gratitude were associated
positive social functioning; emotional         against their individual interest. Gratitude,   with better sleep, and with lower anxiety
warmth, gregariousness, activity seeking,      the researchers argued, had a direct and        and depression. Those results were echoed
trust, altruism, and tender-mindedness.        positive influence on judgment.                 in a study by the University of Manchester.
Finally, grateful people had higher                                                            Sleep, in turn, has been linked with things
openness to their feeling, ideas, and values                                                   like improved memory, healthier weight,
(associated with humanistic conceptions                                                        lower stress, and higher levels of creativity,
of well-being, and greater competence,                                                         stress and attention.
dutifulness, and achievement striving.”

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Nurturing Company Culture: A Love Story                                                                        12

Grateful People Achieve More                     Grateful People Are Less Aggressive             correlates with better exercise habits,
                                                                                                 and encourages us to take better
A study by researchers from the University       At the University of Kentucky, some             care of our health.
of California asked subjects to keep a daily     students in a study received praise for
journal of things they were grateful for.        their writing, where others got a scathing      Gratitude can also aid in recovering more
Two other groups kept journals of daily          evaluation. Next, students played a             quickly when you have health issues. In a
annoyances or general daily observations.        game against the person who’d done the          study of organ recipients, scholars from
Those assigned to keep the gratitude             evaluation, in which they could blast them      UC Davis and the Mississippi University
journals showed significant increases in         with white noise. In general, the insulted      for Women found that patients who keep
determination, attention, enthusiasm and         writers retaliated with loud blasts of noise.   journals of their appreciation scored better
energy, when compared to the two other           But among those insulted writers, some          on measures of mental health, general
groups. Likewise, in a study published           had been instructed to write essays about       health and vitality than those who keep
in the Journal of Happiness Studies,             things for which they were grateful. Those      only routine notes about their days.
researchers surveyed 1,035 high-school           students who had written about their
students and found that the most grateful        gratitude were less likely to blast noise at
had more friends and higher GPAs. Even           their critics. “Gratitude is more than just
athletes benefit from gratitude.                 feeling good,” says Nathan DeWall, who
                                                 led the study. “It helps people become less
Grateful People Pay It Forward                   aggressive by enhancing their empathy.”

In one 2006          study conducted at          Grateful People Are Physically Healthier
Northeastern University, researchers
sabotaged participant’s computers and            At the University of Connecticut,
had a “helpful observer” jump in to help.        researchers found that gratitude has a
Afterward, the students who had been             protective effect against heart attacks.
helped were more likely to volunteer to          According to expert Robert Emmons of UC
help someone else with an unrelated, and         Berkeley’s Greater Good Science Center,
time-intensive, task. In this study, gratitude   it also strengthens the immune system,
was shown to be far more powerful than           lowers blood pressure, reduces symptoms
simply inducing a good mood.                     of illness, increases resistance to pain,

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Nurturing Company Culture: A Love Story                                                                         13

Grateful People Are More
Resilient to Trauma

Studies of Vietnam War veterans have               Researchers at the University of              author of the Kent State University study.
shown that gratitude is significant in             Pennsylvania had similar results when         “It helps us express and enjoy, appreciate,
helping people to maintain emotional well-         they asked subjects to write and personally   be thankful and satisfied with a little
being after traumatic life experiences.            deliver a thank you letter to someone         effort. We all have it, and we need to use it
                                                   who had never been properly thanked           to improve our quality of life.”
It turns out that expressing gratitude in          for his or her kindness. Subjects had a
writing also has powerful benefits. In             huge and immediate increase in their
a study at Kent State, Professor Steve             happiness scores. This impact, said
Toepfer examined the effects of writing            researchers, was greater than that from any
letters of gratitude on happiness, life            other intervention, with benefits lasting
satisfaction, and depression. Said Toepfer:        for a month.
“The more letter writing people did, the
less depressive symptoms they had. They            In addition to all of this, it appears that
improved significantly on happiness and            grateful people have better love lives. =)
life satisfaction. By writing these letters – 15
to 20 minutes each, once a week for three          All of this just goes to show that being
weeks to different people – well-being             thankful and appreciative, and making
increased significantly.”                          opportunities—for yourself and for your
                                                   employees—to feel and express gratitude
                                                   are investments that pay off exponentially.
                                                   “We are all walking around with an amazing
                                                   resource: gratitude,” said Steve Toepfer,
Nurturing Company Culture: A Love Story                                                                14

5 Tips to Create
Happier Employees
By Darcy Jacobsen

Did you know that happier workers help their
                                                               Employee happiness has become an
colleagues 33% more often than unhappy ones?                                                                           Offer Meaning
Happy employees also achieve their goals 31% more
often, and are 36% more motivated in their work. This
                                                               important and growing business concern
                                                               over the past few years, as more and            1       and Alignment
                                                               more companies recognize the benefits
is according to joint research from the Wall Street            of having not just satisfied and engaged      People want to feel like they are part of
Journal and iOpener Institute.                                 employees—but also employees who are          something bigger than themselves—
                                                               happy and in good moods. Health, safety,      whether it is the team, the company or
                                                               productivity, absenteeism, customer           the community at large. Some employees
                                                               service, profitability—it seems there is      actively search for companies that have
                                                               not a business metric out there that is not   strong values and give back to society.
                                                               impacted by how happy your people are.        For many employees meaning is as
                                                                                                             simple as a desire to be aligned with the
                                                               Here are 5 things to consider as you          company goals and mission, and to feel
                                                               try to build a happier workforce in your      like a valued member of a team. A study
                                                               organization:                                 conducted by researchers at the University
                                                                                                             of Alberta found that companies who
                                                                                                             focused employees on the meaning and
                                                                                                             purpose in their work experienced a 60%
                                                                                                             drop in absenteeism and a 75% reduction
                                                                                                             in turnover.

                                                                                  People want to feel like they
                                                                                  are part of something bigger
                                                                                  than themselves—whether it
                                                                                  is the team, the company or
                                                                                  the community at large.
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Nurturing Company Culture: A Love Story                                                                        15

                                                 “Think about those intense work times

 2           Provide
                                                 when the team is all pulling together and
                                                 its total focus on creating something
             for Success and                     amazing keeps team members working
             Personal Growth                     after midnight. A lot of those happiness
                                                 boxes are ticked off in those heroic times:
According to recent research by SHRM,            Feeling like you’re progressing toward a
growth and professional development is
among the top demands of job seekers
                                                 goal, feeling optimistic; feeling like you’re
                                                 part of something bigger than the day-            3       Encourage
in the U.S. labor force. Likewise, a             to-day work; and feeling like you’re being
CornerstoneOnDemand claims that one of           supported and supporting others. Those          For years, studies have shown that
leading causes of employee dissatisfaction       are legendary times at a company, and           recognized employees are happier and
and turnover is a feeling of stagnation or       notice that people are sustained through        more motivated to succeed. But a growing
a disconnect with company goals. That            them, hour by hour, by the conviction and       body of research—as well as a terrific new
study also reports that in the past year, only   affirmation that they are making progress       book by Wharton School professor Adam
1/3 of employees have received training          toward the goal. Happiness comes both           Grant—shows that the employees who
and development opportunities, and               from the end goal and making progress.”         are giving recognition and reward may
two-thirds of employees aren’t receiving                                                         be benefiting as much or more from a
adequate feedback or recognition.                                                                recognition moment than their colleagues.
As Eric Mosley writes in The Crowdsourced                                                        It turns out, giving people the opportunity
Performance Review:                                                                              to express gratitude is also amazingly
                                                                                                 good for thier health, productivity and
                                                                                                 happiness at work. In fact, our latest
                                                                                                 Mood Tracker report, which we’re
                                                                                                 currently putting together, shows that
                                                                                                 employees who are enabled to recognize
                                                                                                 one another are significantly more likely
                                                                                                 to say they are highly engaged than those
                                                                                                 who are not able to recognize one another.
                                                                                                 More on this next month!

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Nurturing Company Culture: A Love Story                                                           16

4                                                5     Create

Build                                           Many experts argue that one of the
Flexibility                                     single biggest contributors to employee
                                                happiness is simply creating a culture
According to Career Bliss, companies            of trust within your organization. This
who see the biggest jumps in employee           means not only your workers’ trust in
happiness are those who, among other            leadership, but also in one another. And
things, emphasize great work-life balance.      that trust is a two way street. A recent
Research by Georgetown University and           study conducted by Harvard University
the Alfred P. Sloan Foundation confirms the     showed that enhancing trust and employee
importance of flexibility in driving worker     commitment creates an environment that      Make sure these five key
happiness, with 80% of employees saying         fosters happy, committed, productive        components are prospering
they would be happier with more flexible        team members. “Workplaces that
                                                                                            in your organization, and the
work options. Of those workers who              provide positive environments that foster
already have flexibility at work, 90% said it   interpersonal trust and quality personal
                                                                                            dividend is sure to pay off
eased the burden of work-life balance.          relationships create the most committed     in smiling faces and better
                                                and productive employees,” said Nancy       business results.
                                                Etcoff, Ph.D., the lead researcher on the
                                                study. Maintain an open, multilateral
                                                dialogue within your organization,
                                                help employees to understand and
                                                contribute to the big picture, and above
                                                all, be sure that leaders are honest and
                                                accountable for decisions.
Nurturing Company Culture: A Love Story                                                                    17

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                          effective culture in your organization?

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