Methodologies help companies identify and resolve entropy within organizational culture

According to the Barrett Values ​​Center report, more than 70% of organizations face significant challenges related to cultural entropy, a silent enemy that erodes the foundations of the company. Its effects include demotivation, high turnover and a toxic work environment. This enemy has a name: cultural entropy, which is when the company’s discourse is very different from the practices it adopts on a daily basis, and this is perceived by employees. 

According to André Cantamessa, partner at EXEC, a company specializing in the selection and development of senior executives and board members, in entropy, there is a large disparity between the company’s declared culture and what it has actually become over time. “In addition, there are different perceptions about the organization, especially among different hierarchical levels. This misalignment undermines the coherence between strategy and daily operations, in addition to compromising the image of the employer brand, negatively impacting the company’s results, its attractiveness in the market and turnover rates,” he explains. 

How can entropy sink a company? 

According to the report entitled  The Importance of Values ​​in Building a High-Performance Culture , produced by the Barrett Values ​​Center, when the organizational culture is aligned with the professional’s individual values, their commitment to seeking the company’s success is greater, reducing entropy. 

Cantamessa exemplifies how entropy occurs in this sense: “A company may believe that what motivates its employees to stay engaged and stay with the company are positions and salaries. However, motivation often goes beyond that, such as being in tune with the company’s values. This lack of vision has a negative impact on unmotivated professionals who, consequently, perform less and who may even become detractors of the employer brand,” he states. 

How to diagnose signs of entropy in organizations 

Although it may seem subjective, cultural entropy can be diagnosed. HR consultancies have developed methodologies to help their clients identify where it lies within the organizational culture, and consequently be able to create a path to mitigate it. 

Cantamessa says that, for the vast majority of his clients, identifying entropy ends up being a surprise. “Normally, board members and the CEO believe that there is alignment with the organizational culture in terms of values ​​and purposes. We run the solution in the organization to understand the internal culture and, little by little, we ‘break down’ the levels and identify where the entropy is located.” 

He highlights some situations that can raise a warning sign about its existence:

1. Lack of motivation and difficulty in retaining talent.  “Turnover starts to rise, with professionals leaving the company without there being, in fact, a deeper investigation into the reasons for their departure, which can often be related to the lack of alignment of their values ​​with the company culture, a lack of a sense of belonging and problems with leadership, which preaches collaboration but does not put it into practice. Faced with situations like these, many end up leaving without even having another job opportunity.”
    
2. Professionals with emotional health problems.  According to a survey conducted by the International Stress Management Association in Brazil (ISMA-BR), 72% of Brazilians feel stressed in the workplace, and 32% suffer from burnout syndrome, a mental exhaustion caused by factors such as the lack of a good work environment and difficulties in relationships with management. “Absenteeism rates in companies are skyrocketing, including absences related to burnout syndrome, depression and anxiety. The absence of an employee affects the team’s productivity, reduces production, encourages the loss of resources and negatively impacts both the human and financial aspects.”
    
3. Difficulty in hiring new professionals.  “In our work searching for talent in the market, we have observed several cases of candidates we approached about a possible professional opportunity at a specific company and, upon learning the company’s name, they give up on continuing the conversation because they know that the company’s culture does not match their individual values. This has a strong connection with employer branding, since high turnover generates buzz in the market, causing talent to turn down job offers. For example, candidates may want a hybrid work environment, but the organization requires them to be present 100% of the time in the office, without a concrete justification for this.”

André emphasizes that companies that reduce cultural entropy increase talent retention, becoming more attractive to the market. Motivated employees who are aligned with organizational values ​​stay longer, which drives innovation and strengthens long-term sustainable strategies. 

“This perception about the benefits of identifying entropy in organizational culture is becoming stronger in organizations, as businesses evolve and ESG principles gain more substance. I believe that, in a while, we will no longer need to convince companies about how essential this identification work is for their survival in the future,” he concludes.

Fernanda Ribeiro
Advisor