The following is a guest piece by Bill Capodagli.
One of my clients once defined corporate culture as what employees do when everything else is stripped away, or what they do when no one is looking. Twenty years ago, corporate or business culture sort of just happened…good, bad or indifferent.
More recently, executives have learned that creating a customer-centric culture can lead to a huge competitive advantage. In 2005, J. Kotter and James L. Heskett published their 10-year research project – “Corporate Culture and Performance” – in which they compared companies that intentionally managed their cultures to similar companies that did not.
Here are some of their findings:
Companies that Managed Their Cultures
- Revenue growth of 682 percent.
- Stock price increases of 901 percent.
- Net income growth of 756 percent.
- Job growth of 282 percent.
Companies that Did Not Manage Their Cultures
- Revenue growth of 166 percent.
- Stock price increase of 74 percent.
- Net income growth of 1 percent.
- Job growth of 36 percent.
Culture is now a common word in the lexicon of business, but for many it's still the great unknown. In 2014, after a massive amount of searches on Merriam Webster’s on-line dictionary site, “culture” was proclaimed the “word of the year. “ In 2016, 87 percent of respondents of Deloitte University Press’ Global Human Capital Trends identified “culture” as important to their organisations.
Agents of Change exists to support organisations in creating and managing cultures that flow, maximising both revenue growth and workforce potential. Get in touch to find out how.