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Posts Tagged ‘Performance Culture’

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

Resuscitating restaurants: What drives performance culture today

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Image source: Elle Hughes | Pexels

The restaurant industry was hit hard by the pandemic. It has to manage many changes, and the most challenging one is retaining talent. According to the National Restaurant Association’s State of the Restaurant Industry (2022) report, more than one million jobs in the hospitality and restaurant industries remain unfilled, and 78 percent of restaurant operators lack the staff to meet customer demand. Data also shows that three out of every four employees intend to quit their jobs within the next year.

In order to mitigate talent management concerns, Chipotle, an American fast-casual restaurant chain with a presence in the United Kingdom, Canada, Germany, and France, developed new strategies and launched programs that are focused on meeting employee expectations and boosting employee experience.

Retention strategies

Chipotle’s benefits program, Cultivate Me, provides its employees with a best-in-class benefits and perks package. It includes bonuses (annual and quarterly), education assistance and debt-free degrees, free meals (one free meal per day), paid time off, assistance program (free access to counselling), 401(k) retirement savings, healthcare services and advocacy,  and benefits in Chipotle partners (discounts in big brands and gyms).

Observing that the turnover rate raised continually in the industry, Chipotle launched learning and upskilling programs. Employees are given multiple options, ranging from high school diploma programs and college classes to courses teaching high-end computer networking skills. The company also introduced a mentoring program for future executives.

Another initiative to boost employee retention was asking employees about the tasks they want automated. The restaurant chain started its automation efforts by developing together with Miso Robotics an autonomous kitchen assistant that makes tortilla chips. The robot called Chippy is already being tested and is soon to be integrated into restaurants, leaving employees to focus on more important tasks. The company also started implementing a new digital scheduling program and upgrading its learning portal. As stated by Brian Niccol, CEO of Chipotle for QSR magazine, the brand’s automatization’s radar scans for those “jobs people don’t love doing.”

The restaurant chain also launched a new Learning Management System, the Spice Hub, where restaurant employees can enhance their skills through gamification, social learning, personalized learning paths, and instructor-led training. 

Chipotle ended 2021 in need of 20,000 employees, who should fill its 200 restaurants. Like most of its competitors, Chipotle raised wages as the first step in employee attraction. But that is an initiative that only makes the company keep up with the market. Since the entire restaurant industry is struggling, Chipotle needed to do something more for its employees. That is how Chipotle promotes its differentiator: equitable access to education and mobility. 

Chipotle partnered with Guild Education, a private company that helps companies manage their education assistance benefits, to carry out a national Back-to-School campaign. It aims to attract and maintain interest in school for those employees that can either balance work and online schooling or decide to follow a path of on-campus education. Leveraging its educational benefits in the national campaign, Chipotle’s recruiting team has received 7,500 total applications.

Evaluating employee performance

Broadly, an employee’s performance is periodically evaluated by a representative of the company. The evaluation should result in new goals for improvement and rewards for desirable results.

Chipotle replaced its annual performance review with more regular review sessions. Its performance review now comprises at least four meetings per year. During these sessions, managers ask employees four questions. The so-called 4×4 conversation contains the following questions:

  1. What are your most significant accomplishments since we last met?
  2. What are the most important things you will focus on before meeting next?
  3. What obstacles are you encountering right now?
  4. What can I do better or differently as your manager to support you?

This type of review and the questions themselves consider the employee as the owner of the evaluation. Employees give feedback to the company and challenge themselves with new objectives.

The employees’ performance can be acknowledged through benefits, recognition, compensation, and rewards. Since the beginning, Chipotle has rewarded its employees with prizes. If prior, the employees were rewarded with free menu entrees, now, Chipotle employees can win multiple Chipotle goods and a variety of discounts from Chipotle Partners.

As a result of all Chipotle restaurant chain’s efforts to retain employees in 2021, they managed to:

  • Internally promote 90% of restaurant management roles 
  • Promote almost 19,000 team members
  • Offer free and confidential Employee Assistance Program (EAP) services to all Chipotle Employees in need of mental and emotional support
  • Achieve a Human Rights Campaign Corporate Equality Index score of 100
  • Establish an inclusive, award-winning culture

At Chipotle, the company’s values have been agreed upon altogether with employees. The leadership team defined an initial set of values that were later discussed with employees. The fact that the leadership team involved all employees in such a decision empowers them and increases their loyalty.

Culture is from the beginning communicated and present in all interactions inside a team. One of the first ingredients of culture reinforcement is investing in people. Increasing communication within all organizational levels and enhancing collaboration can strengthen teams, leading to an increased retention level and a high-performance culture.

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