Source: USC Marshal Business School
Culture is defined as any values, assumptions, and artifacts (symbols, stories, texts, ceremonies, rituals, etc) associated with the company. How well the company adheres to culture and how well the company culture promotes growth, improvement and a suitable work place determines cultural strength. There is a clear correlation with culture and return on capital and even though it's only at .51 (out of a possible 1.00) this is higher than most single factor regressions. The study takes samples form companies in various sectors but in general for every 1% improvement in the cultural environment of a company we can expect about a 3% increase in return on capital. The good news is that there is a way to systematically increase your culture and if you are interested please Contact Us.
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3 comments:
Good point, Ankit. It reminds me a little of the "Good to Great" concept of "getting the right people on the bus." Even if they don't have the right skills, if they are right poeple, they can learn the right skills.
PS. Your blog theme is gorgeous :-)
Jennifer,
Thank you for the comments and with the cultural piece part of it is having the right person in the right place but the majority of it is just how people feel at the company, how the company problem solves, how the company responds to everyday situations and crisis. There are so many variables that aren't focused on but that are important.
Ankit
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