The Performance Culture Diagnostic™ (PCD) and Performance Culture Quadrant™ (PCQ) are tools for understanding how culture drives performance. This article walks through the research and rationale behind them, including what's being measured, why, and how we developed them.
What are the PCD and PCQ, and why were they developed?
The Performance Culture Diagnostic (PCD) is a research‑backed diagnostic that synthesizes 50+ years of organizational science and Culture Amp’s own research into a blueprint for sustainable high performance. It measures the conditions for sustainable high performance via:
Two outcome indices (factors): Workplace Engagement and Performance Confidence, and
Six underlying culture dimensions: Excellence, Vision, Ownership, Learning, Voice, and Energy (EVOLVE).
The Performance Culture Quadrant (PCQ) is a clear, dual‑outcome interactive report that plots your organization's Workplace Engagement against Performance Confidence. This allows you to classify your current Performance Culture state, and guide action toward Peak Performance (which we define as both high Workplace Engagement and high Performance Confidence).
Sustainable high performance requires both an engaged workforce, and one that has the confidence that the business can achieve success. We built the PCD to explicitly measure these as two distinct, research-backed outcomes, providing clarity and precision so leaders can see where culture is truly enabling or constraining performance. This makes it easier to target the right action areas, and surfaces nuances that a single engagement score alone may not fully reveal.
In the product, this diagnostic is available as the Performance Culture Diagnostic (PCD) survey template, which directly powers the Performance Culture Quadrant (PCQ) view in the Summary Report.
The foundational research
Our People Science team conducted rigorous external research (drawing on benchmark data studies, prospective studies, product impact research, and a literature review spanning 50+ years of academic research), and combined it with Culture Amp’s multi‑year research program to confirm the most likely practices and behaviors that support sustainable organizational performance. We used these findings to develop the PCD and PCQ.
If you are ready to configure your survey and enable the quadrant in your reports, see our step‑by‑step implementation guide: Setting Up and Using the Performance Culture Quadrant™ (PCQ)
🔍 How the concepts were developed and validated
🔍 How the concepts were developed and validated
The Performance Culture Diagnostic is built on a foundation of proven psychometric science. We measure Workplace Engagement and Performance Confidence as two separate factors, using multiple survey items for each to guarantee the reliability of the data. Keeping the outcomes separate preserves statistical signals and allows for more precise action - for example, low Performance Confidence may point to organizational strategy and resources, while low Workplace Engagement may point to individual fit, impact, and learning. We used factor analysis and reliability testing to ensure quality, and will conduct ongoing validation as our dataset grows; consistent with how we manage other Culture Amp surveys.
The PCD also uses the same outcome-and-driver architecture found in other Culture Amp survey templates. This includes measuring outcomes through a multi-item index, which produces strong internal consistency and factor coherence. Examples from existing templates include:
Engagement: Outcome index measured via multiple statements, with strong internal consistency and factor coherence (meaning the statements reliably measure the same underlying concept and hang together as intended), validated against external indicators (such as stock prices or attrition data).
Wellbeing and Psychosocial Health: Outcome indices used as early indicators (i.e., they signal risk before it becomes a larger problem, e.g., burnout risk), with actionable drivers to inform practical action or intervention.
For more detail on the concepts behind multi-item outcome indices, see our article on the Science Behind engagement.
From measurement to meaning: the Performance Culture Quadrant (PCQ)
After our research highlighted just how interconnected the Workplace Engagement and Performance Confidence outcomes were, we combined them into a single view: The PCQ. This powerful tool allows you to see exactly where your organization lands based on your results from our Performance Culture Diagnostic survey.
The PCQ unifies the two outcomes into a single map of culture states. We deliberately call them “states” because we recognise it simply describes your employee’s perceptions at a point in time, and can be changed through acting on the drivers of the outcomes or as business or the wider business environment circumstances change.
The Performance Culture Quadrant - culture states defined by Workplace Engagement and Performance Confidence.
The Peak Performance culture state sits at the top right. High engagement. High performance confidence. Employees and teams in this culture are excited to be there and fully bought into the company’s vision and strategy. They take responsibility for the success of the organization, continuously trying to improve systems and processes and innovating to increase impact. They role model the company’s values and lift up those around them without waiting to be told by management what to do next.
The Engaged Skepticism culture state sits in the top left. High engagement. Low performance confidence. These teams care deeply about their work. The energy is there. But, they question whether the organization has the right approach to win. In this state, work can feel chaotic. Many people are pushing hard, but they are not necessarily pointed in the same direction. They may lack clear processes and decision making frameworks to efficiently execute and don’t see strong accountability. This can lead to blame and silos across the organization.
The Strained culture state sits in the bottom right. Low engagement. High performance confidence. Employees believe the company will succeed, and they are pushing hard to get there. But, their energy is fading with extreme pressure to achieve short-term goals. Burnout risk may be high in this state, but employees also commonly see their work as transactional. They will only do what is asked of them to receive the next reward, but are not intrinsically motivated to do anything beyond that. They know what it takes to execute each quarter, but are not committed to the long-term success of the organization.
The Disconnected culture state sits in the bottom left. Low engagement. Low performance confidence. Employee energy is depleted. Belief that the company will succeed is weak. Employees in this state can be re-activated, but need significant changes to break the norms. They often need to see major shifts in leadership and strategy to reconnect with both the organization, the work, and the path to success.
Why this matters:
In our analysis across ~1,800 organizations July 2024 and July 2025, ~44% were in Peak Performance state, and 76% of those sustained it year‑over‑year - evidence that Peak is both attainable and durable at the organizational level.
Peak Performance companies showed a non‑market‑adjusted two‑year median stock price increase of ~36% versus a median decline of ~‑11% for others - an approximate 47% stock price advantage.
These findings come from mapping companies into the four culture states using Engaging Culture and Performance Confidence scores, then tracking their subsequent stock price performance over time.
Tip: To learn more about this research and the methodology behind these findings, you can download our full eBook here: The Performance Culture Research.
Inside The Performance Culture Diagnostic
How the PCD evolves our approach to measuring engagement
Our Employee Engagement Index measures Organisational Engagement, which is the relationship between the employee and their organisation. Workplace Engagement builds on this by also incorporating work engagement, reflecting the relationship between the employee and their role, tasks, and day-to-day conditions.
| Organisational Engagement | Work Engagement |
What it measures | The relationship between the employee and their organisation | The relationship between the employee and their role |
Focus | Commitment and connection to the company | Investment and connection to the work itself |
Together, these form Workplace Engagement, which captures an employee's connection and investment in both their work and their organisation. In practice, this means a truly engaged employee is committed because they genuinely enjoy both what they’re doing, and who they’re doing it for.
We enhance this with the addition of Performance Confidence, which measures employee confidence in the success of the organisation. Two of the questions may be familiar from our original Engagement survey template, reflecting the link between the two survey tools. It is worth noting that Performance Confidence is not an objective measure of organisational performance, and does not reflect actual financial results. We cover this in more detail below.
What does Workplace Engagement measure?
This outcome measures connection, immersion, and commitment to the organization and work through five questions:
“I would recommend [Company] as a great place to work,”
“I see myself still working at [Company] in two year’s”,
“I really enjoy the work that I am doing”,
“I often find myself immersed in my work,” and
“I feel like I belong at [Company]”).
The outcome acts as our north star (with strong links to metrics including productivity, retention, sales and shareholder returns). As an index, it reflects your employees favorability in relation to their connection, absorption, and dedication to both their work, their colleagues, and the organization.
What does Performance Confidence measure?
This outcome measures employees’ perception that the organization consistently meets high goals and is positioned to succeed through three questions:
“[Company] is in a position to really succeed over the next three years,”
“At [Company], We consistently meet or exceed high goals,” and
“Our products/services are as good as or better than main competitors”.
We use a subjective performance measure as a proxy because employees’ perceptions of company performance have been shown to correlate strongly with objective performance outcomes. In our research review, we found multiple studies showing that, when objective performance data is unavailable, subjective assessments of company performance can be used as a proxy for actual performance (e.g.,Vij & Bedi, 2016; Wall et al, 2007).
The rest of the survey: the EVOLVE dimensions
For a full list of the PCD Survey template questions, please see the Template Library inside your account.
The remaining PCD questions measure the practices and behaviours that drive Workplace Engagement and Performance Confidence. The PCD has been designed to help organizations answer critical questions about these practices and behaviours at every level:
Helping organisations understand:
Do we have a peak performance culture?
What levers can we pull to achieve that culture?
What parts of the business are adapting best?
What parts are struggling and how can we help?
Helping leaders and managers understand:
What can we do within our team to better sustain performance?
What can I do to help my team better adapt?
Are my team struggling or at risk of burnout?
Helping employees understand:
Am I energised? Am I focused?
What do I need to be more confident I can succeed?
How can I help us be a peak performing team?
Through Culture Amp's research on sustainable high performance, we identified six dimensions, which are the practices and behaviours most likely to enable sustainable high performance. Each of these dimensions combines to spell the word “EVOLVE” which signifies one of the most important components of sustainable high performance: the ability to adapt in a state of constant change. Multiple concepts underpin each of the six dimensions, which are reflected in the driver questions. More details about each dimension can be found below.
Excellence
Excellence
Setting a high bar and getting better every day. Employees and leaders alike are always doing their highest quality work. This dimension draws on research into High-Performance Work Practices and the principles of Total Quality Management, both of which emphasise clear standards and continuous improvement as drivers of sustained performance.
Vision
Vision
Your strategic North Star gives everyone a clear sense of long-term goals and the values that get you there. People understand the "why" behind the strategy, and have started driving toward your shared destination. This dimension is informed by Goal-Setting Theory and Organisational Identity Theory's focus on direction and purpose, as well as Collins and Porras's work in Built to Last on the role of stable, long-term mission in sustaining high performance.
Ownership
Ownership
The people who need it have clear decision-making power and the autonomy to actually lead. You have a structure that favors agility over micromanagement, such that everyone takes personal pride in the final result. This dimension draws on Self-Determination Theory's insights into autonomy and Organisational Design Theory's focus on decision rights.
Learning
Learning
You treat experimentation and even "smart failure" as essential tools for growth. Your culture fuels a constant cycle of development through honest, high-quality feedback and a commitment to promoting talent from within. This dimension is informed by Learning Organization Theory, Growth Mindset Theory's focus on a development orientation, and Experiential Learning Theory's focus on learning through experience.
Voice
Voice
Employees can speak up or take a risk without being shut down. Your culture propels two-way communication in a way that ensures the best ideas rise to the surface and risk is mitigated early. This dimension draws on Amy Edmondson's research into psychological safety, Social Exchange Theory's focus on relationship building, and Team Effectiveness Theory's principles for collaboration.
Energy
Energy
Roles are aligned with strengths, interests, and values. Teams have operationalized time for all employees to surge and then recharge. This dimension is informed by Self-Determination Theory's insights into motivation, the Job Demands-Resources Model, and Conservation of Resources Theory's focus on energy management.
PCD measures how each dimension influences your outcomes so leaders can target the most impactful levers. Our driver (impact) analysis approach then identifies which dimensions most strongly predict each outcome in your data, focusing action on the fewest, highest‑leverage areas.
Tip: To learn more about how driver questions work with outcomes, see the Science behind our Survey driver questions
Two new factors: Team and Manager
The EVOLVE dimensions are also measured at the team and manager level, bringing the diagnostic closer to where work actually happens. A common frustration with traditional engagement surveys is that top drivers tend to land at the company or executive level, leaving managers unsure what to act on and employees feeling like change is always someone else's problem. By mapping all six EVOLVE dimensions to both the team and manager level, the PCD produces local, coachable signals that link directly to outcomes, so action can start within a team's span of control, not just at the company level.
Team factor
Team factor
This factor looks at a team's operating norms across the EVOLVE dimensions: how the group sets high standards, aligns and delivers on goals, learns and collaborates, and manages effort and recovery. Example items:
“Our team regularly reflects on our work and implements improvements” (Excellence)
“People in our team collaborate well with one another to get the job done” (Voice)
“When my teammates say they'll do something, they follow through with it” (Ownership)
Manager factor
Manager factor
This factor captures how managers enable sustainable high performance across the EVOLVE dimensions - connecting work to strategy, setting clear plans and standards, building feedback and networks, and organising work to avoid burnout. Example items:
“My manager helps us set a clear strategy for achieving our goals” (Ownership)
“My manager gives me useful feedback on how well I am performing” (Learning)
“My manager organises our workload and resourcing in a way that helps us perform well without burning out” (Energy)
Summary
A Validated Foundation
The Performance Culture Diagnostic measures two distinct outcomes, Workplace Engagement (our evolved approach to measuring employee engagement) and Performance Confidence, developed using established psychometric principles and a research-backed architecture consistent with other Culture Amp surveys.
Unified Reporting
The Performance Culture Quadrant unifies these outcomes into a clear, two outcome interactive report, showing where your culture sits today, and what it takes to move toward Peak Performance.
Multi-Level Action
The EVOLVE dimensions tell you why and where to act, measured at the organisation, team, and manager level so action can happen at every level of the business.
Commercial Impact
Evidence from Culture Amp research shows Peak Performance is real, commercially meaningful, and durable, making culture a credible and measurable driver of business performance.
The Bottom Line: The PCD and PCQ give you a precise, research-backed starting point. From here, the path to Peak Performance is one your organisation can act on with clarity and confidence.
FAQs
Question | Answer |
Why have we not included a question about motivation in the Workplace Engagement outcome? | If you're using the Employee Engagement Index, motivation is still included. However, in the new Workplace Engagement measure, motivation is captured within the questions that assess how immersed and energised employees feel in their day-to-day tasks. Rather than asking about motivation as a standalone concept, we've embedded it within a more precise, validated set of items that give leaders a clearer and more actionable signal. A broad motivation question on its own doesn't tell you much about why someone is or isn't motivated, however the Work Engagement and Performance Confidence dimensions do. |
Why did we decide to make Workplace Engagement and Performance Confidence as two separate outcomes, instead of one like Employee Engagement? | During the development and testing of the diagnostic, we actually explored whether these could work as a single combined outcome - similar to our Employee Engagement score. When we ran factor analyses across large multi-company samples, the data gave us a clear answer: they don't behave as one construct. Engagement-type questions consistently clustered together, while performance confidence questions formed a distinct factor.
Forcing them into a single outcome would have obscured that difference and lost meaningful signal. Keeping them separate means leaders can act more precisely - low Workplace Engagement points to energy, fit, and connection, while low Performance Confidence points to strategy, quality, and competitiveness. |
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