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Why It Matters More Than Strategy: The Power of Culture in Shaping Organizational Performance

Melvin Blair

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Published in Corporate Purpose: Why It Matters More Than Strategy (Routledge Library Editions: The Automobile Industry)

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Corporate Purpose: Why It Matters More Than Strategy (Routledge Library Editions: The Automobile Industry)

by Shankar Basu

5 out of 5

Language	:	English
File size	:	3173 KB
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Print length	:	325 pages
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By John P. Kotter and James L. Heskett

In today's rapidly changing business environment, it is more important than ever to have a strong organizational culture. Culture is the shared values, beliefs, and norms that guide employee behavior and shape the way an organization operates. A positive culture can motivate employees, improve productivity, and lead to better financial performance. A negative culture, on the other hand, can demotivate employees, reduce productivity, and lead to financial losses.

In their book, Why It Matters More Than Strategy, John P. Kotter and James L. Heskett argue that culture is more important than strategy in shaping organizational performance. They base this argument on a study of 207 companies over a period of 11 years. The study found that companies with strong cultures outperformed companies with weak cultures on a number of measures, including financial performance, customer satisfaction, and employee retention.

Kotter and Heskett identify four key elements of a strong culture: purpose, values, practices, and leadership. Purpose is the reason why an organization exists. It is the organization's mission or raison d'être. Values are the shared beliefs and principles that guide employee behavior. Practices are the ways in which employees behave in order to achieve the organization's purpose and values. Leadership is the process of influencing and guiding employees to achieve the organization's goals.

Kotter and Heskett argue that these four elements are essential for creating a strong culture. When all four elements are in place, employees are more likely to be motivated, committed, and productive. This, in turn, leads to better financial performance and other positive outcomes.

The authors provide a number of examples of companies with strong cultures. These companies include Southwest Airlines, Toyota, and General Electric. These companies have all been able to achieve sustained success by creating and maintaining a positive culture.

Why It Matters More Than Strategy is a valuable resource for leaders who want to create a strong culture in their organizations. The book provides a clear and concise framework for understanding organizational culture and its role in organizational effectiveness. Kotter and Heskett's research shows that culture is a powerful force that can shape the performance of any organization.

In today's competitive business environment, it is more important than ever to have a strong organizational culture. Culture is the shared values, beliefs, and norms that guide employee behavior and shape the way an organization operates. A positive culture can motivate employees, improve productivity, and lead to better financial performance. A negative culture, on the other hand, can demotivate employees, reduce productivity, and lead to financial losses.

Leaders who want to create a strong culture in their organizations should focus on the four key elements of culture: purpose, values, practices, and leadership. By creating a culture that is aligned with the organization's goals and values, leaders can create a more motivated, committed, and productive workforce.

Corporate Purpose: Why It Matters More Than Strategy (Routledge Library Editions: The Automobile Industry)

by Shankar Basu

5 out of 5