Building an Outside-In Culture of Unity With the 10 Dimensions of HR Effectiveness

In today's rapidly changing business landscape, organizations must build cultures that enable them to adapt and thrive. But what does it take to foster a shared mindset and identity across an organization? How can HR leaders craft a culture that resonates with employees, delights customers, and inspires confidence in investors?

The answer lies in adopting an "outside-in" approach – one that looks beyond internal dynamics to consider the perceptions and needs of external stakeholders. By aligning the organization's identity and employee actions with the expectations of customers and investors, HR can cultivate a powerful sense of unity and shared purpose. And as our research shows, building this type of cohesive culture can have an outsized impact on business performance.

Defining Culture as Unity from the Outside-In

The concept of "unity" can feel abstract and hard to pin down, often conjuring images of cheery but hollow mission statements. But as my co-founder, Dave Ulrich and I explain, genuine unity emerges when "customers and investors outside and employees inside have a common view of the organization's identity." In other words, there's a consistency between how the organization perceives itself and how the outside world perceives it.

This outside-in unity creates a "shared mindset" – an enduring organizational identity that outlasts any individual leader. When employees, customers, and investors are aligned around this shared mindset, it unleashes intangible value, boosting employee commitment, customer loyalty, and investor confidence. Suddenly, unity becomes more than a feel-good aspiration – it's a driver of tangible results.

The 10 Dimensions of HR Excellence

So how can HR leaders deliberately build this elusive but powerful shared mindset? Based on extensive research conducted by the RBL Institute across thousands of organizations, Dave Ulrich and the RBL team have identified 10 key dimensions of HR functional effectiveness.

1. HR Reputation: Building trust and credibility with all stakeholders
2. HR Customers: Creating value for both internal and external customers
3. HR Purpose: Articulating a clear identity around who we are, what we do, and why we exist
4. HR Design: Matching the HR structure and roles to the business strategy
5. Human Capability: Developing the talent, leadership, and organizational capabilities to execute the strategy
6. HR Analytics: Using data and insights to guide decision-making
7. HR Digital Technology: Harnessing tech to boost efficiency, innovation, and connection
8. HR Practices: Crafting integrated, mutually reinforcing HR initiatives
9. HR Professionals: Ensuring HR team members have the right competencies and character
10. HR Relationships: Forging positive, collaborative partnerships within HR and cross-functionally

When HR gets these 10 dimensions right, it shapes a culture of unity where employees instinctively know what to do to delight customers and build the business. The organization's identity and reputation take on a life of their own.

Building Cultural Unity in Practice

To illustrate these principles in action, consider the story of Domino's Pizza in the 1990s. Seeking to build a strong service culture, Domino's top executives engaged in a simple but powerful exercise: identifying the three things they wanted to be known for by their best customers. After much discussion, they landed on a memorable mantra: "Hot, fresh, tasty pizza delivered on time by friendly people who drive safely." 

Domino's then translated this desired identity into tangible employee actions at key customer touchpoints, like answering calls by the fourth ring and using heat bags to keep pizzas at the optimal temperature. Even the delivery box, which customers saw long after their interaction with employees, became a branding opportunity. By making the new service mindset real for both customers and employees, Domino's created a remarkable consistency between the way insiders and outsiders experienced Domino's brand.

As this example shows, building an outside-in culture of unity isn't just a matter of crafting an inspiring vision. It requires careful attention to every dimension of the HR function, from hiring and rewarding talent who personify the desired culture, to equipping employees with the skills and tools to translate abstract values into concrete behaviors. Above all, it demands a relentless focus on the perceptions and needs of customers, and a willingness to reshape the organization's identity to meet those needs.