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Why Your Organization's Culture Matters: Shaping the Unseen Force That Will Transform Performance
- By James Heskett
- Published Jul 27, 2011 by Pearson FT Press.
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Description
- Copyright 2012
- Dimensions: 6" x 9"
- Edition: 1st
- eBook
- ISBN-10: 0-13-277979-X
- ISBN-13: 978-0-13-277979-1
The contribution of culture to organizational performance is substantial and quantifiable. In The Culture Cycle, renowned thought leader James Heskett demonstrates how an effective culture can account for 20-30% of the differential in performance compared with "culturally unremarkable" competitors.
Drawing on decades of field research and dozens of case studies, Heskett introduces a powerful conceptual framework for managing culture, and shows it at work in a real-world setting. Heskett's "culture cycle" identifies cause-and-effect relationships that are crucial to shaping effective cultures, and demonstrates how to calculate culture's economic value through "Four Rs": referrals, retention, returns to labor, and relationships. This book:
- Explains how culture evolves, can be shaped and sustained, and serve as the organization's "internal brand."
- Shows how culture can promote innovation and survival in tough times.
- Guides leaders in linking culture to strategy and managing forces that challenge it.
- Shows how to credibly quantify culture's impact on performance, productivity, and profits.
- Clarifies culture's unique role in mission-driven organizations.
A follow-up to the classic Corporate Culture and Performance (authored by Heskett and John Kotter), this is the next indispensable book on organizational culture.
"Heskett (emer., Harvard Business School) provides an exhaustive examination of corporate policies, practices, and behaviors in organizations." Summing Up: Recommended.
Reprinted with permission from CHOICE, copyright by the American Library Association.
Sample Content
Table of Contents
Acknowledgments x
About the Author xii
Introduction 1
Two Visits, One Story 3
Questions to Be Addressed 12
How This Book Is Organized 13
Chapter 1 A Crisis in Organization Culture? 15
What Culture Is and Isn’t 17
Stealth Weapon or Humanizing Effort? 17
The Development of Interest in Organization Culture 19
The Nature of an Organization’s Culture 22
Culture and the Workplace 35
Culture and the Long-Term Erosion of Job Satisfaction 38
Chapter 2 Culture as “Know How” 41
ING Direct: Shaping a Culture 41
Culture and Purpose (“Know Why”) 45
Culture and Strategy (“Know What, When, Where”) 46
Culture and Execution (“Know Who”) 46
How Successful Managers View the Importance of Culture 48
Culture in the Context of Purpose, Strategy, and Execution 49
Chapter 3 Culture: A Multi-edged Sword 55
Nature and Results of the 1992 Study 59
Strong Cultures Affect Performance 60
Strength of Culture Is Not Correlated with Good Performance 61
Adaptability Keys Long-Term Success 61
The Question of Fit 62
The Role of Leadership 65
Chapter 4 Culture in an Organization’s Life Cycle 69
How Cultures Are Formed 69
The Process of Culture Formation 72
How Cultures Are Articulated and Institutionalized 72
How Cultures Are Diluted 75
Enemies of an Effective Culture 77
How Cultures Are Renewed 88
Reinforcing Effective Cultures 90
Chapter 5 Economics of Culture: The “Four Rs” 95
Economic Advantages of an Effective Culture: The “Four Rs” 97
Culture Impact Model 114
Several Caveats 114
Chapter 6 The Culture Cycle: Measuring Effectiveness 119
USAA: Effectiveness Through Trust 121
Nucor Steel: A Study in Learning, Accountability, Self-Direction, and Innovation 124
Toyota and the Importance of Alignment and Agility 128
Measuring a Culture’s Strength 132
Measuring a Culture’s Health: The Culture Cycle 134
Measuring a Culture’s Fit 146
Caveats 147
Chapter 7 The Four R Model: A Field Test 151
The Setting: RTL, Inc. 151
The Research and Findings 152
The Blind Results 156
Blind Result Comparisons 158
Caveats Regarding the Blind Estimates 159
Comparisons of Culture Cycle Elements 160
Management’s Interpretation of What Happened 164
Conclusions 165
Chapter 8 Culture and Innovation 169
The Culture Cycle and 3M Innovation 172
Levels of Innovation 174
Adaptability and Innovation 179
Value “Clusters” That Foster Innovation 179
Innovation “Value Clusters” at Apple 187
Chapter 9 Culture and Adversity 197
Adversity and Response at Intuit 197
Adversity and Response at BP 200
9/11 and the Southwest Airlines Response 203
Adversity and Response at Goldman Sachs 204
So What? 209
The Fit Between Culture, Leadership Style, and the Nature of Adversity 210
How Cultures Help and Hurt in Times of Adversity 212
Culture as a “Filter” Between Adversity and Performance 214
Chapter 10 Subcultures and Global Strategies 219
Enter the Culturalists 221
Global Management Challenges from Cultural Differences 223
What Do These Vignettes Suggest? 231
The Selection of Leaders 239
Managing the Relationship Between Headquarters and Subsidiaries 241
Organizing, Coordinating, and Controlling Effort 243
Implications for Subcultures in General 245
Chapter 11 Mission-Driven Organizations: Special Challenges 251
Supergrowth 251
Loss of Focus: “Mission Creep” 253
Making a Large Organization Seem Small 255
Deploying Human Resources: The Challenge of Volunteer Labor 255
Measuring and Rewarding Effectiveness Among an Organization’s Subcultures 257
Coordinating Efforts with Other Mission-Driven Organizations 259
Managing Board and Leadership Conflicts Concerning Basic Assumptions 260
Controlling Zealous Behavior 263
Chapter 12 Dealing with Forces That Challenge Organization Cultures Today 267
Information and Communications Technology 268
Increasing Emphasis on Transparency 270
New Generations of Employees 272
Team-Based Work 276
Employment and Deployment Strategies 277
The Rise of Free Agency 281
The Psychological Shrinking of the World 281
Chapter 13 Leading Culture Change 285
How Do You Know Change Is Needed? 288
Monitoring Links in the Culture Cycle: RTL, Inc. Revisited 289
Changing a Culture 297
Sustaining Culture Change 305
Conclusions 309
The Role of the Leader in Reshaping Culture 310
Chapter 14 Answers and Questions 317
Characteristics of Effective Cultures 318
Economic Outcomes: Profit and Satisfied Stakeholders 320
Behavioral Outcomes: Great Places to Work 320
Some Final Thoughts 322
Appendix A Sample Questions for Measuring the Strength and Health of a Culture 325
Appendix B Four R Assumptions and Computations 329
Appendix C Complete Results of Employee Surveys, 2009 and 2010, for Three RTL, Inc. Offices 333
Endnotes 339
Index 361