Corporate Culture
Performance Management - Corporate Culture is Glue
No value creation without culture – Corporate culture is the glue

Sustainable value creation cannot be created for only one group

The most successful organisations understand that the purpose of any business is to create value for customers, employees, and investors, and that the interests of these three groups are inextricably linked. Therefore, sustainable value creation cannot be created for one group unless it is created for all of them.

When broadly defined, value creation is increasingly being recognized as a better management goal than strict financial measures of performance, many of which tend to place cost-cutting that produces short-term results ahead of investments that enhance long-term competitiveness and growth.

As a result, value creation should be the first priority for all employees and all company decisions.

 

No value creation without culture - The importance of organisational alignment

 

Organisations that emphasize clearly defined cultures that are aligned with company value creation enjoy better performance, greater financial gain and long-term employee commitment. But what is corporate culture?

Curt Anastasio, CEO, NuStar Energy:

Culture is everything. The culture is the number one most important thing about a company. And the success of the company really depends on having the right culture and keeping it strong

Lori Fouché, CEO, Fireman’s Fund:

Culture is the glue that holds an organization together. It helps guide all the decisions, how you behave and act. You can pick whatever strategy you want but how you go about doing it is the difference between, oftentimes, success and failure

Steve Kaufer, Founder & CEO, TripAdvisor:

Culture is the style or the method by which the employees are working each day to fulfill the mission of the company

Dan Mead, CEO, Verizon Wireless:

Culture is the very core of what we do. It starts with integrity, earning the trust of customers and following through

Corporate culture is an incredibly powerful factor in a company’s long-term success. No matter how good your strategy is, when it comes down to it, people always make the difference. Not paying attention to culture undermines performance.

The most important thing about culture is that it’s the only sustainable point of difference for any organisation. Anyone can copy your strategy, but nobody can copy your culture. So don’t leave it untended!

What does it take to create the right kind of culture?

Short URL & title:
No value creation without culture – Corporate culture is the glue — http://www.torbenrick.eu/t/r/ojl

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Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement and development and change management. International experience from management positions in Denmark, Germany and Switzerland View full profile

9 Comments
Eric Doner

March 20, 2014 9:07 pm

Rick: This piece is awesome. Great visuals! i would like to cite your blog in our Newsletter – with attribution of course! I also LOVED your top 20 quotes on Change – which is how I found you.

I will also look for you on LinkedIn.

Best regards, Eric

Anders Broechner

March 22, 2014 2:08 pm

Absolutely agree on this one – good article. I would however argue that “society” should be listed as a stakeholder as well, to whom businesses contribute/create value. I don’t believe in huge governments, hence businesses need to take their share of “social responsibility” and letting this be part of their culture. This should be an integral part of doing sustainable business.

Best regards,
Anders

Torben Rick

March 22, 2014 4:08 pm

Good point Anders – Thanks

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