Best Practices Whitepaper Download: Changing Corporate Culture: 4 Do’s and 3 Don’ts
The importance of organizational culture is getting more press lately. In March, Samsung announced that it was reforming its military-style corporate culture to become more nimble and innovative. Last September, Volkswagen’s emissions controversy prompted their CEO to step down amid accusations of a corporate culture described as “confident, cutthroat, and insular…potentially enabling lawbreaking behavior.” Last February, widespread reports about scandals, corruption, incompetence and deaths caused the Department of Veterans Affairs to begin to change its rigid and ineffective corporate culture.
The good news is that leaders are beginning to better understand the important role that changing corporate culture can play in terms of business performance. We define culture as how things really get done. It includes the way people think, behave and act. Harvard Business School recently reported that culture can account for up to half of the differential in performance between organizations in the same industry. Our own organizational alignment research found that cultural factors account for up to 40% of the difference between high- and low-growth companies.The bad news is that changing an entrenched organizational culture is one of the toughest leadership tasks you will face. Aligning the hearts and minds of people is never easy.
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