Corporate Culture Pros – What’s Different?
75% of initiatives to grow or improve any business (merger, strategy, team, culture) fail to achieve the expected ROI. (Mourier & Smith, 2001).
The reason executives hire Corporate Culture Pros? We have a proven process to link culture and business performance. Your organizational culture is not about improving morale and engagement – those are important qualities of an adaptive culture, but today’s culture change initiatives are about linking essential behaviors to growth drivers that can be prioritized, measured and tracked.
Culture change today is an alignment process to help people across the business adapt, innovate, and drive change. The following research – all highly credible sources – will help executives understand this link:
Culture-Performance Research Summary
Comprehensive research in 1992 detailed in “Corporate Culture and Performance” ;
- Compared adaptive and non-adaptive cultures;
- Adaptive outperformed non-adaptive competition by 756% net income growth vs. 1%;
- Similar contrast shown in several other key performance measures.
- Reported in groundbreaking book in 1994 “Built to Last”;
- Comparative study of visionary companies with “second-best” competitors, and general market companies;
- Visionary companies outperformed the general market by a ratio of 15 to 1 in stock returns (from 1926 to 1990).
- Most direct research on culture-performance link, by Dan Denison of University of Michigan;
- Links culture to 7 business performance measures;
Benchmarks you against 1076 companies globally; - Average ROE for high culture scores was 21% versus low culture scores 6%.
- Similar results for other performance measures.