Culture is often depicted as “touchy feely,” one of those “California” ideas that is a good idea but comes second to focusing on the bottom line.
I challenge that thinking.
Professor John Kotter of Harvard did an 11 year study of more than 200 blue-chip enterprises in 222 industries and found:
“Corporate culture can have a significant impact on a firm’s long-term performance.”
- 4 times higher revenue (682 percent versus 166 percent increase),
- 7 times more expanded work force (282 percent versus 36 percent),
- 12 times higher stock prices (901 percent versus 74 percent), and
- 756 times higher net income (756 percent versus 1 percent).
John King and Dave Logan, co-authors of the book, Tribal Leadership, found:
“In an effective culture, people accomplish 3-5 times more.”