I am having my own software service company, DIGICORP and I am leading a team of 10 developers. The total company size is of around 50 persons. We are four friends who have started this venture from 2004.

During last year, we have read the Getting Real and Rework books from [37signals](http://37signals.com/) founders. We closely followed what [Zappos](http://zappos.com/) did, we have started focusing more on providing quality service and building great environment in the company. This has changed a lot in the way we were doing business.

We have been able to build a friendly culture. We also make sure that the team does not face any issues with infrastructure. We keep doing innovative events to make sure that the team has more and more reasons to work at the company.

We started making following changes to our business decisions

* Limited Team Size
* Not throwing more time at a problem (Avoiding late night stays and working on weekends)
* 5 days and 8 hours of effective output

We face mainly following two issues.

* We find that the output we get today was less as compared to past. This is not just an observation, some of our old employees talk to us in one to one and they also raise the same question.
* We recently discovered that in the friendly culture we have most of the time started showing the better side of the work that way it is becoming more difficult nowadays to reprimand someone when they make mistake. Also due to the same fact, everyone in the company has a feeling that they are producing the greatest output.

So the answer I am looking for :

* How can we improve culture so that everyone in the team keeps improving output regularly and their 8 hours keep becoming more and more valuable?