In my Mining Group Gold and my Building Team Power workshops, I have posed this question to participants: “What does organizational culture mean to you?” A synthesized definition has emerged over time from the many inputs: Only 15% said their firm’s corporate culture was where it needed to be.More than 50% said corporate culture influences productivity, creativity, profitability, firm value and growth rates.92% said they believed improving their firm’s corporate culture would improve the value of the company.More than 90% said that culture was important at their firms.Meaning, you can have a good strategy in place, but if you don’t have the culture and the enabling systems that allow you to successfully implement that strategy, the culture of the organization will defeat the strategy.įinally, a November 2015 study “How Corporate Culture Affects the Bottom Line” by Duke University’s Fuqua School of Business adds weight to the point that corporate culture is an essential element of business success driving profitability, acquisition decisions, and even whether employees behave in ethical ways.Įxecutives overwhelmingly indicated that an effective corporate culture is essential for a company to thrive in the modern business world. Among the findings: My favorite statement regarding the power of organization culture on business performance and competitiveness is the oft-quoted organization effectiveness maxim that says: And how they do it is determined by culture." Companies win not because of what they do, but because of how they do it. The reality is that culture is one of very few truly sustainable competitive advantages. "There is growing recognition of the fact among business leaders. "Look, its Management 101 to say that the best competitive weapon a company can possess is a strong culture. But the devil is in the details of execution. And if you don’t get it right, it’s the devil to pay."Īdam Zuckerman, a consultant in Towers Watson’s Chicago office, shows how culture drives marketplace success. The power of culture and an incisive plan to manage it is well stated by Jack Welch. Above all, Culture Matters Because it Dictates Competitive Advantage Why? Because the old, “Stupid or not, that’s the way we do things around here” will just keep re-emerging.Īnd, to be clear, by results, I mean results achieved by your customers through your company’s products or services. Not simply products delivered, systems installed, or services provided, but business results-needs met, problems solved, and goals achieved. Until you understand what culture is and how it is driving your business the wrong way, learning how to change it to significantly improve results will be challenging. “91” continues the server, “92,” “93,” “94.” At that point, the husband and wife looked at each other in disbelief. The wife turned to the server and said, “Sorry, we just lost our appetites, we’ll buy our corned beef and salami elsewhere.”Īfter the couple left, the server went back over to the other person behind the counter-who was her boss-and asked, “Now wasn’t that a bit stupid we just lost a good sale?” Her boss replied, “Stupid or not, that’s the way we do things around here.” They were the only customers in the place. The server behind the deli counter said, “May I help you?” But before either could reply, the other person behind the deli counter, standing off to the side, uttered a fairly loud “uh-hum.” A discussion then took place between the two employees.įinally, the server returned to the customers and pointing to a ticket dispenser, said, “I’m sorry, but you’ll have to take a number.” The husband pulled #94. His wife pointed to the digital sign on the back wall that read 87. “88,” says the server, behind the counter, “89,” “90,” “This is insane,” says the wife. A man and his wife entered a deli together late one afternoon.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |