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Posts Tagged ‘Organizational Culture’

How Culture, Not Just Strategy, Drives Agile Employee Performance Management

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Think of workplace culture as the foundation of a building—no matter how sturdy the walls or advanced the design, weaknesses will emerge without a strong base, leading to potential failure. Similarly, even the most well-crafted strategies and key performance indicators (KPIs) cannot compensate for a weak workplace culture.  In this interview, Mohannad Al-Ghazo, a management consultant at The KPI Institute, shares insights into why culture plays a significant role in fostering sustainable performance.

From your own professional experience, what key elements are indispensable in cultivating a performance-oriented culture, and how have they influenced your work?

A strong performance culture comes from clear goals, accountability, and openness. At Innovia Biobank, I introduced automation to track performance, which helped reduce bad debts and improve efficiency. Similarly, at The KPI Institute, I’ve seen how customized training and clear KPI frameworks help teams stay focused and improve results.

Strategic priorities today are being shaped by trends such as the rise of artificial intelligence (AI), reskilling efforts, and economic pressures, as highlighted in the World Economic Forum’s Future of Jobs 2025 report. In light of these trends, should we anticipate shifts in organizational culture? And if so, what might those changes look like?

Yes, organizations are moving toward AI-driven decisions, flexible work models, and continuous learning, and The KPI Institute helps companies adapt their KPIs to reflect these changes. For example, many companies now track digital skills development as a key performance measure, showing how important adaptability has become.

Read More >> When Culture Becomes the System: How Does Continuous Performance Management Transform Today’s Organizations?

In light of ongoing workplace shifts, which cultural trends do you think are having the greatest impact on increasing work productivity and individual performance?

Remote and hybrid work flexibility, personalized performance incentives, and AI-driven decision-making are the key trends shaping productivity. Empowering employees with autonomy, leveraging AI for task optimization, and fostering a results-driven rather than process-driven approach have proven to enhance both engagement and efficiency.

In today’s agile work environment, sustainability continues to be a key strategic consideration. In your view, how can organizations truly embed sustainability values in their culture, beyond just meeting regulatory compliance?

Sustainability must be part of daily operations, not just policies. At Innovia Biobank, we automate lab processes to cut costs and reduce waste. At The KPI Institute, we help companies implement sustainability KPIs to improve efficiency, track progress, and enhance resilience. These KPIs ensure accountability, align with global standards, and drive measurable impact, helping businesses integrate sustainability into their core strategy for long-term success.

As organizations adapt to these cultural and strategic changes, what key actions can leaders take to make sure performance isn’t just maintained but enhanced?

Leaders must shift from monitoring tasks to coaching teams, leveraging real-time analytics for agile decision-making. In this shift, transparent goal-setting, continuous learning, and fostering innovation are crucial. By embedding a performance-driven mindset, as we did at The KPI Institute, we saw productivity surge through clear accountability and structured KPIs.

A major factor influencing workplace culture and performance is work structure. How do you see changes such as the back-to-office push influencing employee motivation and effectiveness? In your opinion, is a remote or office-based approach better?

A hybrid model is optimal as it balances collaboration with flexibility. While in-office work strengthens culture and alignment, remote setups boost productivity and work-life balance. The best approach depends on industry demands, but autonomy and trust in employees yield the highest performance levels.

Given these structural and cultural shifts, what methods have you observed that organizations use to assess employee performance nowadays, and do these methods really help people achieve better results?

Companies are moving away from traditional annual reviews to real-time tracking. At The KPI Institute, we work with companies that use performance dashboards to track progress throughout the year. This helps managers give faster feedback, keeping employees focused and improving overall performance.

How can organizations make a smooth transition from the traditional rating and ranking evaluation system to agile employee performance management?

Shifting focus from rigid numerical ratings to goal-based and competency-driven evaluations can evolve traditional ranking systems into a more agile and adaptive approach to performance management. Incorporating regular check-ins, self-assessments, and AI-driven insights can provide more meaningful feedback. Additionally, clear communication and training ensure employee buy-in, which makes the transition seamless and effective.

Looking at what works in practice, what is one tool, method, or approach that has proven most effective in your organization for driving employee performance?

Data-driven decision-making combined with automated KPI tracking has been the most effective. At Innovia Biobank, integrating systems, applications, and products (SAP) in data processing and customer relationship management (CRM) systems provided real-time insights that improved performance visibility and accountability across departments.

Read More >> The One Culture Shift That Drives Growth in Technological Disruption

While performance incentives like targets and bonus systems are designed to drive results, they can sometimes lead to undesirable attitudes and consequences. How can organizations avoid the negative impacts of target setting at the employee level?

Organizations should balance quantitative targets with qualitative measures. Emphasizing collaboration, learning, and process improvements prevents a toxic, target-obsessed culture. Moreover, aligning individual goals with company missions ensures motivation remains purpose-driven rather than pressure-driven.

Over the years, what’s been the most surprising or counterintuitive lesson you’ve learned about organizational culture, and how has it shaped your approach to leadership?

Culture is more important than strategy or KPIs alone. At The KPI Institute, I’ve seen that even the best systems won’t work unless employees feel valued and supported. When people believe in the company’s vision, they perform better—not because they have to, but because they want to. 

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Editor’s Note: This article was originally published in Performance Magazine Issue No. 23, 2025 – Employee Performance Edition.

About the Expert: An award-winning management consultant, Mohannad Al-Ghazo was recognized in 2023 as the Most Visionary Healthcare Diversification CEO. With over 13 years of leadership in healthcare, biobanking, and business transformation, he drives innovation and operational excellence across industries. He believes long-term success depends not just on strategy or KPIs but on agile performance management, which emphasizes adaptability, collaboration, and growth.

How Sharpening Standards Set the Game-Winning Plan for Employee Management

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In the game of basketball, a well-defined playbook sets the foundation for a winning team. The same principle applies to nurturing a workplace culture. Without a strong framework, workplace culture can feel like a chaotic, uncoordinated game. According to Eric Lynn, Senior Learning Manager at Microsoft, establishing clear standards creates an environment where employees understand expectations, perform at their best, and contribute to a culture of excellence. He is also a professional coach at Microsoft’s Customer and Partner Solutions (MCAPS) organization, where his role is integral to supporting the company’s Growth Mindset Culture.

Eric’s background in sports administration instilled in him a deep understanding of teamwork, strategy, and leadership, which he further refined through a Master of Science in Organizational Management and Leadership. With over 17 years of experience in learning and development, he shares in this interview a unique perspective on how training programs, strong leadership, and a results-driven approach can drive long-term business success. 

From your own professional experience, what key elements are indispensable in cultivating a performance-oriented culture, and how have they influenced your work? 

I think in a performance-based culture, it is imperative to have transparency and clear standards. If you can understand what the guidelines are and how to achieve them, the more consistent and impactful the team’s performance will be. 

Strategic priorities today are being shaped by trends such as the rise of artificial intelligence (AI), reskilling efforts, and economic pressures, as highlighted in the World Economic Forum’s Future of Jobs 2025 report. In light of these trends, should we anticipate shifts in organizational culture? And if so, what might those changes look like? 

Yes, and I believe we will be moving to a more team-oriented performance culture. Two reasons why a strong team culture is important in today’s workforce are that it helps improve our use of new technologies and enables us to work together to handle pressures, both economic and industry-based. While we tend to focus on individual performance, the leader of a work group or a senior-level employee will also be held accountable if they don’t have clear standards. When the rules are inconsistent, employees will be unable to make the impact needed to overcome the potential cuts brought about by the cultural shift. 

In light of ongoing workplace shifts, which cultural trends do you think are having the greatest impact on increasing work productivity and individual performance? 

The use of AI as a true partner for an individual will be a big transition for productivity and performance. I see that being able to work alongside this technology opens up and improves productivity. From a performance standard, it really allows individuals to focus on more important and pressing work. 

In today’s agile work environment, sustainability continues to be a key strategic consideration. In your view, how can organizations truly embed sustainability values in their culture, beyond just meeting regulatory compliance? 

I feel that diversity plays a significant role in how company members see and support each other. The more they embrace different perspectives and collaborate effectively, the stronger their ability to work together toward shared goals. In our organization, we avoid unnecessary travel and wasted time associated with in-person training events. Travel for a global workforce can not only create financial instability but also increase emissions and generate additional waste, such as food waste. It is important to balance return on investment with time spent to ensure we are acting as responsible global and financial stewards of the business.

As organizations adapt to these cultural and strategic changes, what key actions can leaders take to make sure performance isn’t just maintained but enhanced? 

Leaders need to be very clear on what the standards are for the team and organization. While there shouldn’t be a big departure between these, it is so important in a world riddled with changes that there is always a foundation on what the goal is for the team and organization. Leaders also need to foster a mindset wherein everyone counts; if a member of the team is struggling, we need to think about why and what can be done to help. It may be solved through training or having a conversation at the individual level, but I feel more and more that we need to have honest conversations around role changes and work scope. 

A major factor influencing workplace culture and performance is work structure. How do you see changes such as the back-to-office push influencing employee motivation and effectiveness? In your opinion, is a remote or office-based approach better? 

I find that if standards are clear and individuals are given autonomy, their workplace won’t matter— they will strive for success and contribute regardless.  However, I do feel that a lack of trust can be a significant factor affecting employees. Personally, I find a hybrid situation impactful and beneficial in managing expectations and more. 

Given these structural and cultural shifts, what methods have you observed that organizations use to assess employee performance nowadays, and do these methods really help people achieve better results? 

Organizations with a true team culture deliver the best team performance. When a company has subjective standards, it can be hard to take things seriously. Overall, I feel that the technology industry is taking a strong approach to accountability. I do like this approach, but in order for it to truly be effective and impactful, leaders must have a strong team culture with clear standards. 

How can organizations make a smooth transition from the traditional rating and ranking evaluation system to agile employee performance management? 

Having clear standards and providing solid coaching can uphold teams and employees. It is important that leaders remain curious and always review the process and the structure before jumping to the individual. I think organizations that do that and help those around them and see how they contribute can create a good environment centered around healthy performance management. 

Looking at what works in practice, what is one tool, method, or approach that has proven most effective in your organization for driving employee performance?

The principles around curiosity and coaching have been good at helping to remove judgment and inspection. One example involved a manager who had an opportunity to improve performance. Rather than inspecting or placing blame on the organization, we focused on key learnings that could guide future improvements and help carry the work forward. This approach demonstrates a vested interest in continuous improvement and in building examples of how this can work in the future.

Asking thoughtful questions such as “What about…?” or “That’s a great idea—have we considered…?” helps to better understand the mindset behind decisions and fosters a more constructive approach to problem-solving.

While performance incentives like targets and bonus systems are designed to drive results, they can sometimes lead to undesirable attitudes and consequences. How can organizations avoid the negative impacts of target setting at the employee level? 

It has to come down to a strong correlation beyond the reward. Employees need to understand that it is about leaving an impact that helps improve a group versus not. While employees can receive a bonus for their performance, it really comes down to how the organization and the company feel. 

Over the years, what’s been the most surprising or counterintuitive lesson you’ve learned about organizational culture, and how has it shaped your approach to leadership? 

I have learned the importance of transparency, which means having clear standards of what excellence looks like in top performance. I have seen this effectively used by senior leaders by being very clear on expectations, allowing their teams to align with those standards. For example, this includes guidance on how to influence for impact, the key competencies required at each level, and the structural framework needed to make it work. I think of it like a motion offense in basketball—the more structure you give your players, the more ability and autonomy you give them to make the decisions.

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Editor’s Note: This article was originally published in Performance Magazine Issue No. 32, 2025 – Employee Performance Edition.

Behind Closed Doors: Culture Is What We Do When No One Is Watching

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With return-to-office mandates looming on the horizon, workplace culture is more important than ever. But what constitutes this culture? What shapes it? Steluţa Elena Mihai might just have the insights you’re looking for.

Steluţa co-founded Meraki HR, a company that provides tailored HR solutions. She has two master’s degrees (one in business management and another in labor law), a certificate in sport psychology for athletes’ development, and multiple certifications in strategic HR, communication, and leadership. In this interview, Steluţa explores what workplace culture looks like beneath the surface.

From your own professional experience, what key elements are indispensable in cultivating a performance-oriented culture, and how have they influenced your work?

A performance-driven culture relies on clear expectations, a goal-setting process, and leaders who walk the talk. Transparency in objectives and accountability enhances trust, while investing in the personal and emotional development of higher management ensures strong decision-making and resilience at the top. Without these, engagement and long-term performance suffer.

In my work, I’ve seen that companies that are underperforming in these areas often struggle with engagement and retention, no matter how much they invest in their performance management tools.

Strategic priorities today are being shaped by trends such as the rise of AI, reskilling efforts, and economic pressures, as highlighted in the World Economic Forum’s Future of Jobs 2025 report. In light of these trends, should we anticipate shifts in organizational culture? And if so, what might those changes look like?

AI is changing the way we work, but its impact depends on how we understand and use it. The key is smart, compliant, and ethical adoption—leveraging AI to enhance productivity without replacing critical human decision-making. The trend shows that if companies fail to adapt strategically, they will struggle to stay competitive.

In light of ongoing workplace shifts, which cultural trends do you think are having the greatest impact on increasing work productivity and individual performance?

Prioritizing mental health – Companies that understand and recognize burnout will actively support well-being and will achieve higher long-term productivity.

High-performance mindset – Understanding the principles of peak performance helps individuals sustain motivation and effectiveness.

Hybrid work, done right – Hybrid and remote work boost productivity, but without clear accountability structures, they fall short. Flexibility must come with the responsibility to ensure that outcomes are met.

In today’s agile work environment, sustainability continues to be a key strategic consideration. In your view, how can organizations truly embed sustainability values in their culture, beyond just meeting regulatory compliance?

This crucial topic is still waiting for its authentic moment in the spotlight. Sustainable behaviors are often overlooked because everyone loves a report that looks good on paper. People’s values and behaviors shape company culture, so organizations should examine how and whom they recruit, how and whom they promote. True sustainability isn’t about ticking boxes; it’s about hiring and developing individuals who genuinely prioritize sustainability in their decision-making.

As organizations adapt to these cultural and strategic changes, what key actions can leaders take to make sure performance isn’t just maintained but enhanced?

Success at work triggers dopamine, leading to feelings of fulfillment and motivation. To enhance performance, organizations must create processes and provide tools that help employees consistently achieve their best outcomes year after year. When people experience progress, their engagement and drive increase, reinforcing a cycle of continuous improvement. Leaders should focus on removing obstacles, setting clear goals, and ensuring employees have the resources needed to excel.

A major factor influencing workplace culture and performance is work structure. How do you see changes such as the back-to-office push influencing employee motivation and effectiveness? In your opinion, is a remote or office-based approach better?

The issue isn’t remote vs. office—it’s clarity and purpose. Employees need to understand why office presence matters. If collaboration and culture-building are the goals, structure the in-office experience around them. A workplace should feel like a space of inspiration, not obligation. The best companies blend intentional in-person collaboration with remote flexibility, ensuring motivation stays high.

Given these structural and cultural shifts, what methods have you observed that organizations use to assess employee performance nowadays, and do these methods really help people achieve better results?

Traditional performance reviews no longer work for today’s mix of generations. Many companies only conduct them for regulatory purposes, leaving employees frustrated by endless evaluations with no real incentives. People are tired of check-the-box assessments that lack the ability to drive meaningful progress. The real goal should be coaching for self-actualization—helping employees build a better, more purposeful life, not just measuring performance for the sake of it. Organizations need to shift from outdated evaluations to continuous, meaningful coaching that fosters personal and professional growth.

How can organizations make a smooth transition from the traditional rating and ranking evaluation system to agile employee performance management?

Ditch forced rankings. High performers don’t need artificial competition to excel. Instead, focus on strengths-based development, integrate regular coaching and emotional regulation practices, and align performance metrics with long-term business outcomes, not just short-term quotas. The shift requires a mindset change at the top.

Looking at what works in practice, what is one tool, method, or approach that has proven most effective in your organization for driving employee performance?

Listening and adapting to how the company vibrates. Truly effective organizations don’t force rigid frameworks; they listen to employees, adapt to their needs, and act on feedback. Leaders must walk the talk—when employees see genuine responsiveness and commitment to their input, performance naturally improves. This is yet another reason for having emotionally mature leadership.

While performance incentives like targets and bonus systems are designed to drive results, they can sometimes lead to undesirable attitudes and consequences. How can organizations avoid the negative impacts of target setting at the employee level?

Targets should drive progress, not fear. Organizations should balance qualitative and quantitative metrics to prevent toxic competition. Instead of focusing solely on short-term results, incentives should encourage behaviors that drive long-term success. When employees feel a sense of purpose rather than pressure from numbers, they stay motivated and engaged, leading to sustainable performance improvements. 

Over the years, what’s been the most surprising or counterintuitive lesson you’ve learned about organizational culture, and how has it shaped your approach to leadership?

Culture is what people do when no one is watching. It’s not policies, posters, or slogans—it’s the lived reality. If leaders don’t model the culture they preach, employees won’t buy into it. Additionally, experts promoted to leadership roles without leadership skills and emotional maturity create toxic environments. Leadership isn’t about expertise alone—it requires self-awareness, emotional intelligence, and the ability to inspire and develop others.

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Editor’s Note: This article was originally published in Performance Magazine Issue No. 32, 2025 – Employee Performance Edition

Elevating performance-driven culture: weaving excellence into company DNA

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Image source: pixelshot | Canva

What is the most crucial asset owned by an organization? In the modern business landscape, a company might possess a well-defined vision, mission, and set of value drivers, along with a carefully articulated strategy and aligned objectives throughout all levels of the organization. Nevertheless, employees may fail to adopt these values, as these are not inherently embedded in their actions due to the absence of a performance-driven culture.

Hence, the company must foster a culture that actively facilitates the execution of its strategy. This culture should empower every employee to operate in alignment with the established value drivers, behavioral norms, and competencies set forth by the organization to fulfill its mission while being consistent with overarching corporate goals.

Central to cultivating a successful performance-driven culture are leaders. They stand as key influencers, coaches, and role models. Organizations must shift their focus from having managers who assert authority to nurturing leaders who coach and guide. These leaders should serve as advocates for aligning and interpreting corporate objectives for employees at all levels. Proper training is fundamental in equipping them to effectively manage their subordinates.

To enable leaders to construct a thriving performance-driven culture, organizations can implement the following steps:

  1. Build the desired organizational culture. For an organization to define the fundamental characteristics of its desired culture, it must translate its mission and vision into tangible value drivers, anticipated behaviors, and needed competencies. These elements must be communicated extensively to all employees, ensuring their adoption, with an emphasis on starting this process with the leaders themselves.
  2. Highlight a leader’s role in cultivating performance excellence. Leaders are essential in shaping the desired performance culture within an organization. They lead by example, embodying cultural values, behaviors, and skills. This sets a motivating tone for their teams and encourages others to follow suit. Effective leaders foster openness and feedback, which leads to transparency and collaboration. They recognize and reward behaviors that match the culture.
Additionally, they provide coaching and growth opportunities to empower employees. This creates an environment where everyone feels valued and engaged, forming the basis of a performance-driven culture.
  1. Foster performance by promoting employees’ mental wellness. In creating a culture of performance, the importance of nurturing a healthy mindset and prioritizing employees’ mental well-being cannot be overstated. A positive mindset is crucial for a culture of excellence. Employee mental health directly affects engagement, productivity, and satisfaction. Providing resources like counseling, stress management, and flexible work options not only demonstrates commitment to well-being but also leads to a focused, creative, and productive workforce. A mental health-supportive culture enhances individual well-being and aligns employees with organizational values, ultimately improving performance.
  2. Empower performance culture through data interpretation. Organizations have a wealth of data that offer insights into employee engagement, performance, and overall health. Leaders must use data analytics to guide culture development. By studying metrics like satisfaction, productivity, and alignment with values, leaders can spot improvement areas and measure initiative impacts. This data-driven approach refines strategies based on evidence, creating a flexible culture. Regular data analysis shows employees that their contributions matter, boosting transparency and commitment to growth.

Successful examples

Google provides a noteworthy example of a strong performance culture as exemplified by initiatives like Project Aristotle and Project Oxygen. Project Aristotle highlights team dynamics and psychological safety, fostering an environment where all members freely share ideas and take calculated risks. Meanwhile, Project Oxygen focuses on effective leadership qualities such as coaching, communication, and genuine care for team members. These initiatives underscore Google’s dedication to establishing a culture of collaboration, innovation, and leadership, creating a thriving workplace for both teams and individuals.

Another notable example is Netflix, which embodies a performance culture centered around “seeking excellence.” This entails encouraging each employee to excel and contribute to produce their best work. Netflix values individual responsibility and open feedback, creating an environment where high standards and innovation are prized. The company hires top talent and empowers them with trust and autonomy. This adherence to excellence shapes their decision-making and has contributed to Netflix’s success.

Creating the right organizational culture lays the foundation for success. Leaders drive performance excellence by setting an example and supporting their teams. Taking care of employees’ well-being adds to the positive atmosphere, and using data helps leaders make smarter choices. Combining these aspects builds a culture where everyone thrives, innovation flourishes, and organizations prosper.

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This article is written by Chadia Abou Ghazale, a seasoned banking professional with 24 years of experience and who excels in budgeting, sales performance management, data analysis, and resource planning. Beyond banking, she is a dedicated reader of self-development topics and passionate networker. Chadia believes that life’s purpose is the pursuit of knowledge. Her extensive expertise and unwavering enthusiasm are a dynamic combination, driving success in her career and enriching her life’s adventurous journey.

 

Leadership’s impact on organizational climate: lessons from internal scanning

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Image Source: Tumisu | Pixabay

Like a captain steering a ship through a stormy sea, leadership plays a crucial role in shaping the organizational climate, which in turn affects the individual’s level of commitment to the organization, job satisfaction, and productivity (Oktem, 2022). Creating a positive organizational climate requires management to focus on promoting autonomy, freedom, and support. Organizations can use internal environment scanning methods such as employee surveys, focus groups, and organizational culture analysis to gain insights into how leadership affects the work environment—knowledge that can then be used to create a positive climate to enhance employee knowledge, behavior, and effectiveness.

Critical factors such as interaction with team members, behavioral patterns, and the quality of the leader’s information—which covers updates, decisions, and strategic plans that they need to communicate to their team—all shape the organizational climate. Leadership behavior can significantly influence employee attitude and behavior. Studies have shown that managers who acknowledge their team members’ accomplishments can improve the perception of the organizational climate and leadership quality. 

Conducting an internal environment scan can help assess the current state of the organizational climate and identify opportunities for improvement. The organizational culture analysis, a method of internal environment scanning, involves reviewing the values, beliefs, and behaviors of employees and aims to gain insights into how leadership is perceived and how it is influencing the culture of the organization.

One company that values its organizational culture and recognizes the significant role of leadership in shaping the work environment is Netflix. The company empowers employee decision-making by widely sharing internal documents, such as memos on title performance, strategy decisions, and product features. 

Additionally, Netflix prioritizes open and direct communication by investing in coaching and modeling behaviors. To promote good decision-making, the company emphasizes the need for highly effective people and fewer management layers. The company encourages a “context not control” culture where leaders are expected to coach, set context, and provide feedback instead of micromanaging while employees make their own decisions. To foster this culture, Netflix values certain behaviors and skills in its employees, such as good judgment, selflessness, courage, communication, inclusion, integrity, passion, innovation, and curiosity. 

The company employs a feedback system that includes surveys and focus groups to continuously improve its operations. A recent initiative to promote work-life balance involved the implementation of an unlimited vacation policy, which was contingent on fulfilling job responsibilities and goals. To set a precedent, leaders take vacations themselves and urge their teams to do likewise.

As we can clearly see from Netflix’s example, leadership has a significant impact on the organizational climate. This highlights the importance of internal environment scanning to identify opportunities for improvement. 

Improve your organizational climate by enrolling in our Certified Strategy and Business Planning course. Gain valuable insights into the process of internal environment scanning and learn how to identify areas for improvement within your organization.

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