What leaders DO: walk their corporate culture talk
by Miki SaxonPost from Leadership Turn Image credit: christy and jun
Although the stats are Canadian, I doubt that they’re significantly different in the US or other countries.
The results of Waterstone Human Capital’s annual corporate culture study give an interesting insight on senior executive thinking when it comes to corporate culture.
“This year, a whopping 95% of executives said they saw a direct correlation between corporate culture and corporate performance — a 14% increase from two years ago and an increasing recognition by Canadian business leaders that corporate culture has a direct and tangible impact on the ability to achieve business goals.”
That’s how they talk, but here’s how they walk.
“Only 43% of executives told us they even bother to measure corporate culture… Only half of the senior executives we talked with said they were happy with their current culture.”
Compare that with Boston Pizza, which made Canada’s 10 Most Admired Corporate Cultures of 2007 list and makes a point of walking their cultural talk with both employees and franchisees.
They have “a three-year average revenue growth of 69.25% in an industry that typically sees growth in the 4% range and the TSX 60 Composite index had average growth of less than 17%.”
How?
“Success, says CEO Mike Cordoba, is all about following three strategic priorities: a commitment to franchisee profitability, to building the Boston Pizza brand and to continually improving the customer experience.”
“We hire great people and then we pay them for their success,” he says.
“Everybody from the receptionist up to the president gets a share in profits. Rewarding behaviours — and not just results — is a powerful way to align corporate culture with business strategy.”
That’s it, align strategy and culture, mix with a generous portion of vested self-interest and watch your business take wing.
Do you know what kind of corporate culture you have?
Is it aligned with your strategy?
Your comments—priceless
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May 8th, 2009 at 8:15 am
Every organisation should adopt and invest in a culture of excellence. Your approach and your results are what separates you from your competitors. Where repeat business is essential to future profitability, creating a culture where your clients (real people) want to work with you. Rgds Vince
May 8th, 2009 at 8:56 am
So true, Vince. But many companies still treat customers more as a necessary evil. It seems that they still haven’t figured out that it costs far more to attract a new customer than to retain an old one.
Thanks for stopping by and adding your thoughts.