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Culture is not just about "getting the right people on the bus", as Jim Collins would say, although that is crucial. It is about what happens between the people.The central success factor for any human system, in any sector, is the vitality, intelligence, integrity, and adaptability of the culture. In our era of rapid change, of ever more complex challenges and “wicked problems”, creating and sustaining great organizational cultures has become a mandate.
Why? Not because it is nice. Because it is necessary. Culture is the backbone of effective strategy and execution. It is the ground out of which dynamic leadership grows. It seems intangible, but it is an indelible asset.
There is a direct correlation between culture and performance. Harvard Business School professors John Kotter and Jim Heskett did a landmark study in 1992 called Corporate Culture and Performance. They documented results for 207 large U.S. companies in 22 different industries over an eleven-year period. Kotter and Heskett reported that companies that managed their cultures well saw revenue increases of 682% versus 166% for the companies that did not manage their cultures well; stock price increases of 901% versus 74%; and net income increases of 756% versus 1%. Tom Peters said it decades ago: “the soft stuff is the hard stuff”.
In great cultures people “work well together”. Working well together means thinking well together, means making smart decisions, means nimbleness, resilience, precision, an orientation to the future. Is creating a great culture easy? No, it’s hard. But not as hard as continuing to grind through days characterized by mediocre performance and morale. Is it worth the effort? If you’ve ever been part of a great team—in sports, at school or work—then you know it is. All boats rise on that tide.
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©2006 David Sawyer - Context |