A CASE FOR CULTURE

DON SODERQUIST

CULTURE IS INCREDIBLY IMPORTANT IN THE SUCCESS

OF ANY ORGANIZATION“

$ECONOMIC

PERFORMANCESTRONG CORPORATE

CULTURE

There is a positive correlation between corporate culture strength and long term economic performance

rank having engaged and motivated employees as top factors contributing to successCULTURE CAN ACCOUNT FOR AS MUCH AS

$$$$$$$$$$$$$$$$$$$$EARNINGS BEFORE INTEREST AND TAXESEBIT

46%The performance measure used to evaluate and rank the divisions on a monthly basis at Wal-Mart in a study regarding the impact of culture on financial performance by Eric Flamholz.

94%OF EXECUTIVES

88%OF EMPLOYEES

believe a distinct workplace culture is important to business success

CULTURE AND BUSINESS SUCCESS

19 %OF EXECUTIVES

15%OF EMPLOYEES

believe strongly that their culture is widely upheld within their

organization

UPHOLDING CULTURE

sources1. Global Leadership Forecast 2011, �e Talent Management Exper, Jazmine Boatman and Richard Wellins © 2010 | 2.Core Beliefs and Culture, Deloitte © 2013, http://www.deloitte.com/view/en_US/us/About/Leade ship/1fe8be4ad25e7310VgnVCM1000001956f00aRCRD.htm

3. Company Culture by the Number, Employee Bene�t News, Nov 23, 2010, Open View Talent Lab, http://labs.openviewpartners.com/company-culture-by-the-numbers/Employee Engagement Statistics, �e Social Workplace August 8, 2011, http://www.thesocialworkplace.com/2011/08/08/social-knows-employee-engagement-statistics-august-2011-edition/4. Corporate Culture: �e Ultimate Strategic Asset, Eric Flamholtz and Yvonne Randle © 2011Stanford Business Books | 5. The Wal-Mart Way, Don Soderquist ©2005, Nelson Business | 6. HBR- Culture Change that Sticks, Katzenbach, Steffen and Caroline Kronley, July-August 2012, HBR.org

Executives have an inflated sense of workplace culture when compared to

employees

SENSE OF CULTURE

EXCELLENT

POOR

EXECUTIVES

EMPLOYEES

IF WE HAD THE KIND OF CULTURE WE ASPIRE TO, IN

PURSUIT OF THE STRATEGY WE HAVE

CHOSEN, WHAT KINDS OF NEW BEHAVIORS

WOULD BE COMMON?

“

HBR: KATSENBACH STETTEN & KRONLEY

organizations with effective management cultures are 2.5 times more likely to have

passionate leaders

HAPP

INES

S

LIVED OUT CULTURE

THE WAY ORGANIZATIONS MANAGE PEOPLE AND THE CULTURE THEY CREATE PLAYS A FUNDAMENTAL ROLE IN THEIR EMPLOYEESʼ

ABILITY TO DRIVE THE BUSINESS.

DDI“

there is a strong correlation between employees who say they are happy at work,

and those who say their organization has clearly articulated and lived culture