Grateful for the gift of complaining.

A complaint is a gift.  It is a gift whether it comes from an internal or external customer.  That person has decided that she wants to maintain a relationship with you.  They want you to take a different view of their measure of success and they want your buy-in.  The customer that you haven’t heard from, the one who doesn’t call, the one you haven’t reached out to in a while has moved from customer to prospect.  

-Ben Bamford, WW Guest Blogger

 

The Financial Impact of Managing Culture

A question this week comes from Scot Whiskeyman of Harrisburg, Pennsylvania.  Scot asked Work Wisdom whether or not a company's culture impacts their financial bottom line.

Dear Scot,  

Thanks for asking!

Harvard Business School Professor James Heskett and renowned culture guru John Kotter completed an extensive research of the corporate cultures of 200 companies and how each company’s culture affected its long-term economic performance.  They published a book, Corporate Culture and Performance, arguing that strong corporate cultures are associated with strong financial results.  Strong cultures highly value employees, customers, and owners and encourage leadership from everyone in the organization.  

To answer your question, Scot, their research highlights the difference in financial results over an eleven year period between twelve companies that did and twenty companies that did not have this sort of culture.

Below are the average Increases for Twelve Firms with Performance-Enhancing Cultures and the Average Increase for Twenty Firms without Performance-Enhancing Cultures

It's not common for business leaders to discuss that the difference between a nine-hundred percent and a seventy-five percent appreciation in stock price is attributable to the strength of a company’s corporate culture.  The ROI on culture shaping is significant and notable.

Corporate culture can contribute meaningfully to financial results, and many people do not give this fact enough attention.  

Thank you for asking, Scot!  Write again soon!

Your friends at Work Wisdom