Quotable Quotes: Culture Equals Performance
by Miki Saxon
Many of this week’s posts will revolve around culture, so it seemed apropos to start the week with some interesting views on culture.
Louis V. Gerstner, former CEO IBM, says, “The thing I have learned at IBM is that culture is everything.”
Many experts are coming to that realization—decades after the average employee figured it out.
They didn’t use that term 30 years ago when I was a recruiter, but candidates talked about wanting to work where they “felt comfortable” and “fit in;” where they were listened to and were happy.
Edgar Schein, a professor at MIT Sloan School of Management, says, “The only thing of real importance that leaders do is to create and manage culture.” “If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.”
Robert Mintz said, “The crimes alleged at Enron were not the acts of a few greedy senior executives, but truly was an indictment of almost the entire corporate culture.” Of course, it was those same greedy execs who fostered that culture.
Jane Howard said, “We believe it’s our responsibility to create a unique corporate culture. If we do that well, we believe we’ll have enthusiastic employees. If we have enthusiastic employees, we’ll have loyal customers, and if we have loyal customers, we’ll have a sustainable business.”
Shades of Tony Hsieh, who built a culture so powerful that other execs pay him to learn how to implement something similar in their companies; “Our No. 1 priority is the company culture. Our whole belief is that if we get the culture right, then everything else, including the customer service, will fall into place.”
Zappos is a long way from fast food, which is often considered the bottom of the cultural heap, but many execs in that industry are hyper aware of culture’s effect. As David A. Brandon, CEO of Domino’s Pizza said, “You can’t overcome a bad culture by paying people a few bucks more,” something that management ought to remember.
Finally, research from Harvard Business School’s John Kotter & James Heskett found that culture has a major effect of the bottom line, “We found that firms with cultures that emphasized all the key managerial constituencies (customers, stockholders, and employees) and leadership from managers at all levels outperformed firms that did not have those cultural traits by a huge margin.”
Image credit: DonFrance-photos on flickr
