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Why Corporate Culture Matters (and What You Can Do to Make a Better One)

December 30th, 2008 @ 7:50 am

2 Comments

Categories: Management

Tags: Team, Culture, Corporate Culture, Team Success, Team Management, Leadership, Management, Sean Silverthorne

Strong corporate cultures outlast the influence of even the strongest leader. When Steve Jobs leaves Apple, it will be the culture of the company he has helped create that will determine its future success.

Why is culture so important?  Harvard Business School professors Jim Heskett and W. Earl Sasser with co-author Joe Wheeler outline 10 reasons in their new book, The Ownership Quotient.

Here is No. 2 on their Top 10 list:

“Like anything worthwhile, culture is something in which you invest. An organization’s norms and values aren’t formed through speeches but through actions and team learning. Strong cultures have teeth. They are much more than slogans and empty promises. Some organizations choose to part ways with those who do not manage according to the values and behaviors that other employees embrace. Others accomplish the same objective more positively. At Baptist Health Care, for example, managers constantly reinforce the culture by recognizing those whose actions exemplify its values, its behaviors, and its standards. Team successes are cause for frequent celebrations. In addition, BHC rewards individual accomplishments through such things as “WOW (Workers becoming Owners and Winners) Super Service Certificates,” appreciation cards for 90-day employees that list their contributions to their team, one-year appreciation awards, multiyear service awards, employee of the month awards, and recognition of workers as “Champions” or “Legends” for extraordinary achievements or service. Managers at all levels offer frequent informal recognition and send handwritten thank-you notes (which stand out in the age of e-mail). Those who aren’t living up to BHC’s values soon get the point.”

Read the other  nine best practices for designing a better business culture in this book excerpt from HBS Working Knowledge.

 
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    1

    djensensss

    12/30/08 | Report as spam

    RE: Why Corporate Culture Matters (and What You Can Do to Make a Better One)

    Great insight re culture.
    One of the key elements of a successful culture is to use the four core emotional drivers (Acquire, Bond, Comprehend, Defend) to motivate employees. The cultures that do this the best will have engaged employees that will pull the organization through these challenging times.
    Dave Jensen
    http://davejensenonleadership.blogspot.com/

  •  
    2

    DerekIrvine

    01/07/09 | Report as spam

    RE: Why Corporate Culture Matters (and What You Can Do to Make a Better One)

    Timely post. Multiple research reports and news articles are reporting company cultures turning to ones of fear, rumor mongering and resentment due to the faltering economy.

    It is more important now than ever to establish a company culture that will drive the employee productivity and company performance levels to carry you through the recession and prepare you for a solid start out of the blocks when the economy turns. A culture of appreciation in which employees are recognized for their efforts helps employees understand why those efforts are critical to the company achieving its strategic objectives.

    Taking this a step further, if each recognition is specifically tied to a company value demonstrated or strategic objective achieved (or contributed to), company leaders can begin to track which values and objectives are less understood by every employee and how those values and objectives apply to his or her specific job. Executives can use the recognition program as lagging indicators to target these areas of low recognition for additional training or reinforcement.

    More on creating a culture of appreciation is available here:
    http://globoforce.blogspot.com/search/label/culture%20of%20appreciation

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Blogger Profiles

  • Blogger Thumbnail Sean Silverthorne Sean Silverthorne is the editor of HBS Working Knowledge, which provides a first look at the research and ideas of Harvard Business School faculty. Working Knowledge, which won a Webby award in 2007, currently records 4 million unique visitors a year. He has been with HBS since 2001. Silverthorne has 28 years experience in print and online journalism. Before arriving at HBS, he was a senior editor at CNet and Executive Editor of ZDNet News.... more »

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