The following is a guest piece by Bill Capodagli.
What is corporate culture? One of my clients once defined it 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:
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.
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 American business. 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 organizations.