We hear it all the time: “Put your people first, and everything else will follow.” But what if I told you that’s not the full story? I know that might sound counterintuitive coming from someone who’s spent the better part of a career driving cultural change, but hear me out.
Recently, during a webcast with SHRM, I tackled this very topic. The title? “People-Oriented Cultures Don’t Win.” I could almost hear the gasps from the HR professionals tuning in. And trust me, I’m well aware of the audience I was speaking to—HR leaders who, like me, have dedicated their careers to prioritizing people. But let’s dig deeper into why this people-first mantra may not always translate into success, especially if your definition of success includes financial growth and sustained business results.
For years, there’s been this narrative: companies must choose between focusing on their people or focusing on profit. The prevailing wisdom suggests that if you prioritize people, profits will suffer. Conversely, if you prioritize profits, you risk burning out your people.
This tug-of-war has been playing out in boardrooms for decades. On one side, we have companies trying to boost employee happiness with nap rooms, Thirsty Thursdays, and ping-pong tables. On the other side, there are companies like Amazon, forcing employees back into the office, cutting perks, and ruthlessly trimming the fat to stay efficient.
But here’s the kicker (and yes, I’m aware of the irony of using that phrase): Both approaches can miss the mark. What actually drives results isn’t choosing one side over the other—it’s being able to adapt, pivot, and align both people and profits in the pursuit of strategic goals.
I’ve seen it too many times: companies throwing money at employee perks, hoping it will magically drive better business results. I once had a client who, after reading a book on the importance of sleep, mandated nap time for everyone from 2 to 3 p.m. The idea was that well-rested employees would be more productive. The result? Nothing changed. Employees took the naps, but business results didn’t move an inch.
And it’s not just about nap times or kombucha bars. Think about all the resources spent on leadership retreats where executives fly off to Napa, learn about Myers-Briggs, and engage in team-building exercises like hot air balloon rides. Sure, everyone comes back feeling refreshed for about three days. Then it’s back to business as usual. These well-meaning initiatives are temporary band-aids that don’t drive the kind of long-term results companies are chasing.
If I asked you to describe your company culture in one word, what would you say? During the SHRM webcast, we received responses like “supportive,” “collaborative,” “family-oriented,” and even “thriving.” But what if I told you none of these is the magic bullet to success? In fact, our research in partnership with Stanford revealed something surprising: The only culture type that consistently drives business results is not “collaborative,” “people-oriented,” or even “customer-focused.” It’s adaptability.
Yes, adaptability. The companies that thrived were the ones that could pivot quickly, aligning their culture with ever-changing business needs. The focus wasn’t on making people happy in the short term but on ensuring that everyone could adapt, grow, and thrive in the face of change. And let’s be honest: in today’s world, change is the only constant.
If you’re solely focused on keeping your people happy without a clear alignment to business outcomes, you’re going to find yourself sidelined by your business leaders. HR’s role is not just about being the “fun” department that makes everyone happy. It’s about driving results.
I’ve had candid conversations with leaders like Johnny C. Taylor, CEO of SHRM, who acknowledged the tension between HR, line-of-business leaders, and CEOs. If HR wants a seat at the table, we need to speak the language of business. That means understanding how culture drives results—not just engagement scores or job satisfaction, but real, measurable business outcomes.
Let’s talk about what actually drives those results. At Culture Partners, we use something called the Results Pyramid. At the top of the pyramid are the results you want to achieve—things like revenue growth, customer satisfaction, or market share. But to get those results, you need to drive the right actions. And those actions are driven by the underlying beliefs your employees hold.
Here’s the catch: you can’t just mandate new behaviors or throw training at people and expect them to change. You have to shape their beliefs. And beliefs are shaped by experiences. If you want people to embrace a new strategy, you have to give them the experiences that will shift their thinking. It’s not about telling them what to do; it’s about creating an environment where they naturally align their behaviors with the company’s strategic goals.
After analyzing data from over 243 companies—including giants like Ford, Coca-Cola, and McDonald’s—we found that adaptability was the only culture type that consistently correlated with revenue growth. It wasn’t collaboration or customer focus or even accountability. It was the ability to change, pivot, and align culture with strategy. This doesn’t mean you throw your people to the wolves or that you stop caring about their well-being. It means that you focus on building a culture where people are equipped to adapt, where they can thrive in the face of uncertainty, and where they are aligned with the business’s strategic objectives.
Let’s stop chasing the myth that if we just make people happy, the business results will magically follow. Culture is not about making everyone feel warm and fuzzy; it’s about how people think and act to drive results. If you can get your team to think and act in alignment with your strategic goals, that’s where you win.
So, the next time someone tells you that “people-oriented cultures win,” challenge that assumption. Ask, “Win at what?” Because if you’re not winning at driving results, you’re not winning at all.
In a world that’s constantly changing, the companies that win aren’t necessarily the ones that are the nicest—they’re the ones that can adapt, pivot, and align their people with their strategic goals.
That’s how you build a culture that wins.
