Event Final Lugano Culture Presentation 24.5.2005

UNIVERSITY OF LUGANO
MSCOM EXCELLENCE-IN-COMMUNICATIONS LECTURE SERIES
Measuring and Managing

Corporate Culture: The
Invisible Key to
Organizational Success
Presented to:
University of Lugano
MScom Excellence-in-Communications
Lecture Series
Presented by:
Eric G. Flamholtz, Ph.D.
Professor
Anderson School of Management
University of California at Los Angeles
Measuring and Managing Corporate Culture: The Invisible Key to Organizational Success
UNIVERISTY OF LUGANO MSCOM EXCELLENCE-IN-COMMUNICATIONS LECTURE SERIES
Corporate Enigmas: The US

How does a little company headquartered in Bentonville
Arkansas become one of the largest retailers in the
world with more than $288 billion in sales (Wal*Mart)?
How does a company selling a commodity product grow
from $122 million in sales to more than $5 billion in
slightly more than a decade (Starbucks)?
How does a company retain its vitality for more than
100 years (GE)?
How does a company with a dominant market position
(more than 42% market share) fall from grace over a
period of 20 years (General Motors)?
Corporate Enigmas: Europe

Why have the acquisitions by Allianz worked well while
the acquisitions of Baskin Robbins and Duncan Donuts
by Allied-Domecq experienced difficulties?
What caused Reuters to lose its dominant market
position?
Why does the Movenpick web site just mention Ueli
Prager and its history, while Disney has an entire Walt
Disney Family Museum on its web site?
The Answer is Corporate Culture:

The Invisible Asset (Or Liability!)
The Corporate Culture Enigma
You
You
You
You
You
can
can
can
can
can
not
not
not
not
not
see it
touch it
taste it
hear it
smell it
Culture: The Invisible Asset

But it is there, and although it is invisible, it is a
fundamental reason why some organizations are
successful and others not over the long run.
OUR PURPOSE
What is the role of corporate culture in organizational
success?
How can we measure and manage corporate culture to
utilize it as an organizational asset?
What companies manage corporate culture well?
What are some of the significant differences in culture
in US and European organizations?
Perspective:
Practical Management Theory
Theory which is empirically sound and scientifically
validated, but is relevant and practical for leaders,
managers, and investors to use.
Derived from research on organizational success and
failure.
Research on Organizational Success

and Failure:
What role does Culture play in organizational

Success?
Research on Organizational Success and Failure

Paired Comparisons
Successes
Failures/Difficulties
Starbucks
Boston Market
PacifiCare
MaxiCare
Southwest
People Express
Nike
L.A. Gear
Wal*Mart
K-Mart
What is Success?
There are varying degrees of corporate success:
Survival, including the ability to continue to employ people

Continuing to grow
Becoming a market leader
Becoming the market leader
Increasing shareholder value
What is the Role that

Corporate Culture Plays in
Organizational Success?
Role of Culture in organizational Success

Culture is the secret ingredient in organizational
success
The Enigma of Wal*Mart

Versus K-Mart
In 1960 Sears was the largest US retailer and K-Marts
parent company was the number 1 discount retailer?
How did Wal*Mart from humble beginnings
become the largest U.S. retailer with more than
$288 billion is sales revenue?
Wal*Mart vs. K-Mart, 1990s

$300.00
Stock Price*
$250.00
$200.00
$150.00
Adjusted for splits

Wal-Mart
K-Mart
$100.00
$50.00
$-
Year
Wal*Mart vs. K-Mart, 2000-2003

$250.00
$200.00
Stock Price*
Adjusted for splits
** K-Mart filed for

Chapter 11
bankruptcy during
2002.
$150.00
Wal-Mart
$100.00
K-Mart
$50.00
$-
Year
The Enigma of Wal*Mart

Versus K-mart
There are no products that Wal*Mart has that K-mart
cannot have.
The explanation for the difference in success must be
somewhere else.
The explanation is inside the black box of how
Wal*Mart operates, which includes its culture.
The Secret to Wal*Marts Success:

Its Culture
Two key Dimensions of The Wal*Mart Way
Respect for the individual, and
Focus upon the customer.
The Growth of Starbucks?

How does a company producing a commodity
product (Coffee) grow so rapidly to become the
market leader?
In 1993 Starbucks had $122 million in sales and 220
stores.
In 1994 when they had $165 million in revenues,
Starbucks set the goal to grow to $2 billion in revenues
and 2000 stores by the year 2000.
Starbucks has more stores in California than all of its
competitors combined have throughout the US!
Starbucks Success is Not Just About Coffee

The real reason for Starbucks success is its
culture, which is invisible to the outside observer.
Howard Schultz says that when people ask him to tell
them the reasons for Starbucks success, he tells them
something that they are surprised to hear: The most
important single reason for Starbucks success is its
people.
One of Starbucks core beliefs is: The way we treat
our people affects the way they treat our
customers and, in turn, our financial performance.
Starbucks Cultural Principles
Provide a great work environment and treat each other

with respect and dignity.
Embrace diversity as an essential component in the way

we do business.
Apply the highest standards of excellence to the

purchasing, roasting, and fresh delivery of our coffee.
Develop enthusiastically satisfied customers all of the

time.
Contribute positively to our communities and our

environment.
Recognize that profitability is essential to our future

success.
What is Corporate Culture?
What is Organizational Culture?

Culture is corporate personality.
The underlying values, beliefs, and norms which
govern the behavior of people as members of an
organization.
Example of Values, Beliefs, and Norms: Ritz Carlton
Ritz-Carlton Values
The Ritz-Carlton Hotel is a place where the genuine care
and comfort of our guests is our highest mission.
We pledge to provide the finest personal service and
facilities for our guests who will always enjoy a warm,
relaxed yet refined ambience.
The Ritz-Carlton experience enlivens the senses, instills
well-being, and fulfills even the unexpressed wishes and
needs of our guests.
Ritz-Carlton Beliefs
We are Ladies and Gentlemen
Serving
Ladies and Gentlemen
Ritz-Carlton Norms
A warm and sincere greeting. Use the guests

name, if and when possible.
Anticipation and compliance with guest needs.
Fond farewell. Give them a warm good-bye
and use their names, if and when possible.
IBM Core Values
Respect for the individual.
Excellence in customer service.
Excellence in everything we do.
American Century Guiding Principles

Providing value for our investors.
Challenging and inspiring the best people.
Personal responsibility.
Organizational commitment.
Teamwork.
Building a financially sound company.

Being adaptable and innovative.
Working with integrity.
Why is Culture Important?

Culture influences the success of people in
organizations.
Culture Influences The Success of People

Microsoft Reorganizes;
President Belluzzo is Out
The reorganization ends an awkward 2 1/2 year relationship
between the software behemoth and Belluzzo, a veteran of Silicon
Valley hardware stalwarts Hewlett-Packard Co. and Silicon Graphics
Inc. Since joining Microsoft in September 1999, insiders say he
failed to embrace the companys distinctive corporate culture - a
shortcoming the led to his ouster.
Source: Los Angeles Edition, April 4, 2002, Section C,
Business, p. 1.

organizations.
Research has indicated that culture is one of the
six key strategic building blocks of successful
organizations.
Culture is a Key Building Block of Success

Corporate
Culture
Management
Systems
Operational
Systems
Resources
Products
Markets
Financial
Performance

organizations.
Culture is one of the six key strategic building
blocks of successful organizations.
Culture is an invisible key to organizational
success.
Culture is an Invisible Key to Success
Culture is a sustainable competitive

advantage.
It is invisible to competitors.
It cannot be copied easily.

organizations.
Culture is one of the six key strategic building
blocks of successful organizations.
Culture is an invisible key to organizational success.
Culture has a direct impact upon financial
performance.
Culture Has a Direct Impact On

Financial Performance
Our research has shown that the extent to
which there is an agreement between the
culture of organizational units and overall
corporate culture has a statistically significant
impact upon financial performance.
Culture accounts for 46% of EBIT.
Research at Banner Corporation
Approximately $800 (US) million in revenue.

18 business units or divisions.
All divisions with revenues between $25 - $100
million (Stage III).
Most divisions with revenues of $25 - $50 million.
Divisional Cultural Buy-in vs. EBIT

20
EBIT
15
10
-5
25
35
45
55
65
Approval with Culture
75
85
What You Need to Know for Effective

Culture Management
There are strong and weak cultures.
Strong and Weak Cultures

A strong culture is one where there
is a high level of understanding of what
the culture is as well as a strong
commitment to the core values.
A weak culture is where there is not
a high level of understanding of what
the core values are or a high degree of
commitment to them.

Culture Management
There are functional and dysfunctional
cultures.
Functional and Dysfunctional

Cultures
A functional culture is one which enhances

organizational performance and success.
A dysfunctional culture is one which leads to
suboptimal or underperformance.
Examples of Companies of Each Culture Type:

Strong and Weak; Functional and Dysfunctional
Strong
Weak
Functional
Dysfunctional
J&J
Starbucks
GE
The Body Shop
Countrywide Financial
Wal*Mart
Kodak
Reuters
The Body Shop
Disney
Wal*Mart
PowerBar
Movenpick
Amgen
Navistar
Allied Domecq/Baskin
Robbins
UAL
Where would you place the following:

Nestle? Allianz? Unilever?
Functional
Strong
Weak
Dysfunctional

Culture Management
There are functional and dysfunctional
cultures.
There is sometimes a difference between
Stated and Real Culture.
The Difference Between Real and

Nominal Cultures
Nominal (Stated) Culture: What we say our
culture is with respect to how we treat our
customers, our people, and the standards we
have.
Real Culture: The culture that our employees
live and breathe.
IBM Stated versus Real Culture

Stated Culture:
Respect for the individual.
Excellence in customer service.
Excellence in everything we do.
Real Culture (Organizational Reciprocity):

Your take care of IBM, and IBM will take care of you.
What are the Key Dimensions

of Corporate Culture?
Five Key Aspects of Culture

Customer-Client Orientation.
Employee Orientation.
Performance Standards/Accountability.
Openness to Change.
Company Norms.
Corporate Culture Map

Cultural
Dimension
Customer
Orientation
Employee
Orientation
Performance
Standards/
Accountability
Openness to
Change
Company
Norms
Values
Beliefs
Norms
Additional Research on Key

Dimensions of Culture
Factors which directly affect financial
performance:
Customer Focus
Identification with the company
Performance & behavior standards
Corporate citizenship
Factors which indirectly affect financial

performance:
Human resource practices
Communication
How can Corporate Culture be

Measured?
Sample Culture Survey

Current Culture
Current Statement
1. We keep our commitments

to our customers/business
partners.
people are the
2. Our
Companys most valuable
asset.
3. Our company reacts quickly to
changes in the marketplace.
4. Our leaders act and
communicate with integrity
at all times.
5. People are rewarded based
on their performance.
6. Good planning is rewarded.
7. Company policies are
applied consistently..
8. Changes that affect employees
are communicated quickly and
effectively.
To A
Very
Slight
Extent
To A
Slight
Extent
To
Some
Extent
To A
Great
Extent
Desired Culture
To A
Very
Great
Extent
To A
Very
Slight
Extent
To A
Slight
Extent
To
Some
Extent
To A
Great
Extent
To A
Very
Great
Extent
Key Things to Measure Using Surveys

Cultural Alignment: Agreement with the
proposed culture.
Behavioral Consistency: The extent to which
behavior is consistent with the desired culture.
Cultural Gaps: The difference between the
stated or desired culture for a given value and
the actual or observed culture in practice.
Euroco. Survey Results for Culture Items

Item
Mean
%
Unfavorable
%
Neutral
%
Favorable
19
People have different interpretations of our

corporate values, beliefs, and norms.
3.3
0.0
66.7
33.3
26
Corporate values are understood clearly by all

employees.
3.0
33.3
33.3
33.3
31
We focus more on sales than on profitability as

a measure of performance.
3.3
33.3
0.0
66.7
34
The people who best represent our corporate

values get rewarded.
3.3
33.3
0.0
66.7
36
Our leadership spends time communicating the

companys values.
4.0
0.0
33.3
66.7
40
Planning and systematic execution of plans are

rewarded more than crisis management.
4.0
0.0
0.0
100.0
41
We encourage and reward appropriate

innovation and risk-taking among employees.
3.7
0.0
33.3
66.7
46
Employees are encouraged to make

suggestions and offer constructive criticism.
4.0
0.0
0.0
100.0
48
We live quality in service, products, and

processes at all levels of the company.
4.0
0.0
33.3
66.7
49
We demonstrate fairness and consistency in

our supervision of employees.
4.0
0.0
0.0
100.0
Euroco. Survey Results for Culture Items

Item
Mean
%
Unfavorable
%
Neutral
%
Favorable
50
We expend too much energy on protecting our

turf.
3.7
0.0
33.3
66.7
52
Planning is a "way of life" in our organization.
3.3
0.0
66.7
33.3
53
People feel free to bring up sensitive issues to

corporate/senior management.
3.7
0.0
33.3
66.7
Culture Totals
3.7
7.1
23.8
69.0
How Can Culture be

Managed?
Culture Management Process

Define the Culture Needed to
Support Long-Term Success
(Desired Culture)
Identify the
Current Culture
Identify And Analyze Significant
Gaps Between Desired Culture
And Current Culture
Develop Culture
Management Plan
Communicate The New
Culture, As Well As The Steps
Being Taken To Manage It
Monitor Implementation Of
Desired Culture And
Update/Refine The Culture
Management Plan
To what Extent is Corporate

Culture Similar or Different in
European and US
Organizations?
Mean Score Survey Results for Culture Items

Swissco. versus USCO. A and USCO. B
Item
Swiss Co.
US Co. A
US Co. B
19
People have different interpretations of our corporate values,

beliefs, and norms.
2.6
3.6
3.3
26
Corporate values are understood clearly by all employees.
2.7
3.5
3.4
31
We focus more on sales than on profitability as a measure of

performance.
3.2
3.4
3.1
34
The people who best represent our corporate values get

rewarded.
2.7
3.3
3.3
36
Our leadership spends time communicating the companys

values.
3.4
3.9
3.6
40
Planning and systematic execution of plans are rewarded

more than crisis management.
3.0
3.0
3.7
41
We encourage and reward appropriate innovation and risktaking among employees.
2.8
2.7
3.6
46
Employees are encouraged to make suggestions and offer

constructive criticism.
3.2
3.9
3.6
48
We live quality in service, products, and processes at all

levels of the company.
3.5
3.9
4.2
49
We demonstrate fairness and consistency in our supervision

of employees.
3.5
3.4
3.8
Mean Score Survey Results for Culture Items

Swissco. versus USCO. A and USCO. B
Item
Swiss Co.
US Co. A
US Co. B
50
We expend too much energy on protecting our turf.
3.4
3.6
4.1
51
We do an effective job of balancing strategic performance

with long-term success.
3.3
N/A
N/A
52
3.4
2.7
3.1
53

2.6
3.1
3.3
54
All employees understand the informal rules that we operate

with around here.
2.8
N/A
N/A
55
Informal communication channels are more informative than

formal communication channels.
3.0
N/A
N/A
68
The slogan Proud of the past; Prouder of the future reflects

precisely our mission.
3.9
N/A
N/A
Culture Totals
3.1
3.4
3.6
What are the Key Differences?

People have different interpretations of our corporate
VALUES, BELIEFS, AND NORMS.
Corporate values are understood by all employees.
The people who best represent our corporate values
get rewarded.
What Can Your organization do to

manage culture more effectively?
Ten tools to manage culture
Ten Key Tools of Culture Management
Develop a Clear Statement of the Companys

Culture/Values
Examples
Johnson & Johnson Credo

Ritz Carleton
Starbucks
IBM

Culture/Values
Recruit and Select People for Cultural Fit
Example: Hewlett Packard
Hewlett Packard puts prospective employees

through a day-long series of interviews with
eight HP employees (the "interview team") in
order to effectively screen for culture
compatibility.
Example: Avon Cultural Fit Selection

Management Systems is currently working with Avon
Supply Chain Operations to develop a tool for
identifying people who are most likely to fit in to their
culture.
Involves identifying the criteria for peoples success.
Involves identifying questions to be used in interviews
to determine people likely to fit those criteria.
Involves a validation of the selection tool.

Culture/Values
Manage Culture through Socialization and
Training
Example: Disney Theme Parks

Training Practices
New cast members (not employees) go
through Traditions 1 course upon entry.
All people are cast for a Role in a Live Stage
Production.
All cast members are trained by another
employee (Mentor system) in the same role
after completing Traditions 1.

Culture/Values
Manage Culture Through Socialization and
Training
Retain People Who Fit With the Culture
Example: GE Cultural Management

CULTURAL ACCEPTANCE
Low
High
High
Outsiders
Stars
PERFORMANCE
Low
Losers
Question
Marks

(contd)
Change Leadership Practices
Example: Motorola Leadership

Training
All managers were trained in participative

management.
Example: Countrywide Financial

Corporation Leadership Program
Senior leadership is trained in new
leadership practices.
Expected to function as change agents and
cascade the different practices throughout the
company.

(contd)
Change the Reward System
Example: 3M
3M Corporation rewards employees for

successfully championing a new product by
making them the head of that product
division.

(contd)
Set Up the Structure to Support Core Values
Examples
Berkshire Hathaway uses a tiny corporate staff to

support the value of business autonomy, but selects
only those companies which fit its culture.
Johnson & Johnson uses a group and divisional
structure to emphasize a balance between
entrepreneurship and overall coordination.
McDonalds uses a centralized approach to support
consistency throughout the system.

(contd)
Embed Core Values in Performance Standards
and Procedures
Example: McDonalds
To reinforce its value for consistency, McDonalds

strictly enforces adherence to cooking and
preparation guidelines for each menu item so
that a Big Mac in Pacoima is indistinguishable
from one in Poughkeepse.

(contd)
and Procedures
Use Symbols to Reinforce Corporate Values
Knapp Communications:
Architectural Digest, Bon Appetit
Knapp created a special Gold K pin as a symbol

of Outstanding Performance.

(contd)
and Procedures
Use Communication to Reinforce Corporate
Values
Examples
Jack Welsh regularly visited the GE Leadership Training
Facility to talk about GEs core values.
Bill Hewlett and Dave Packard formalized the tactic of
Management by Walking Around.
Sam Walton visited Wal*Marts.
Angelo Mozilo uses annual meetings to talk about the
history of Countrywide, the reasons for its success, and
(by implication) its core values.
Final Thoughts
Culture is invisible but real
It constitutes an asset, intangible but real
Although it is invisible and intangible, it can be
measured
Although invisible and intangible, it can be managed
If managed appropriately, it can have a positive impact
upon the bottom line of financial performance
If managed inappropriately, it can lead to organizational
distress and failure.
References
Flamholtz, E. (1995). Managing Organizational Transitions: Implications for

Corporate and Human Resource Management. European Management Journal, 13
(1), 39-51.
Flamholtz, E. (2001). Corporate Culture and the Bottom Line. European

Management Journal, 19 (3), 268-275.
Flamholtz, E. And Rangapriya Kannan-Narasimhan,(2005). Differential Impact of

Corporate Cultural Elements on Financial Performance. European Management
Journal, 23 (1), 50-64.
Eric Flamholtz and Stanford Kurland, Strategic Organizational Development and

Financial Performance: An Empirical Investigation, unpublished Working paper to
be presented at the UCLA/Oxford University Empirical Research in
Entrepreneurship Conference, June 23-25, 2005
Flamholtz, E. and Hua, Wei, (2002). Strategic Organizational Development and the
Bottom Line: Further Empirical Evidence, European Management Journal, 20 (1),
72-81.
Eric G. Flamholtz and Yvonne Randle, Growing Pains, Jossey-Bass Publishers, Inc.
(2000).
Eric G. Flamholtz and Yvonne Randle, Changing The Game: Transformations of the
First, Second and Third Kinds, Oxford University Press (September 1998).
Please note that all of the materials in this slide

presentation are the proprietary intellectual property of
Eric G. Flamholtz, Ph. d, and Management Systems
Consulting Corporation and may not be reproduced or
otherwise distributed without written permission.
For more about reproduction rights or other information
on this presentation, please contact:
Management Systems Consulting Corporation
10990 Wilshire Blvd., Ste. 1420
Los Angeles, CA 90024
(310) 477-0444
www.mgtsystems.com
Appendix A:
How to See (read) Culture
Language: How we talk about ourselves and

our customers.
Symbols: What represents value to people.
Rituals: Events that promote culture.
Rewards: How we recognize people and
behavior that is valued by us.
Heroes: The role models for success in our
company.
Web Sites: How we present ourselves.
Appendix B:
Steps in Culture Management
Step 1: Define the Culture Needed to

Support Long-Term Success
(Desired Culture)
Key Question:
What should our culture be, given our current
stage of development and our future goals?
Define the Culture Needed to Support

Long-Term Success (Desired Culture)
Identify The Elements of Your Organizations Culture
With Respect to:
Treatment of Employees
Treatment of Customers/Clients
Performance Standards/Accountability
Openness to Change
Company Norms
Step 2: Identify Your Current Culture

Methods to Identify Your Current Culture
Stories What is life like here?
Interviews.
Analysis of symbols, language, rites/rituals, rewards, heroes,
and web sites (Artifacts).
Surveys to Measure Culture.
Step 3: Identify and Analyze Significant

Gaps Between Desired and Current
Culture
Identifying Gaps Using Qualitative Methods
Analyze information collected about the organizations
current culture.
Identify the key elements of the current culture, based
on this analysis.
Compare current to desired culture and identify gaps.
Step 3: Identify and Analyze Significant

Gaps Between Desired and Current
Culture
Identifying Gaps Using Quantitative Methods
Survey Scores:
Mean Scores
Percent Favorable
Swissco. Survey Results for Culture Items

Item
Mean
%
Unfavorable
%
Neutral
%
Favorable
19
People have different interpretations of our

corporate values, beliefs, and norms.
2.6
45.5
42.5
12.0
26
Corporate values are understood clearly by all

employees.
2.7
46.1
40.7
13.2
31
We focus more on sales than on profitability as

a measure of performance.
3.2
20.1
47.5
32.4
34
The people who best represent our corporate

values get rewarded.
2.7
46.5
36.8
16.8
36
Our leadership spends time communicating the

companys values.
3.4
21.5
27.0
51.5
40
Planning and systematic execution of plans are

rewarded more than crisis management.
3.0
29.8
36.6
33.6
41
We encourage and reward appropriate

innovation and risk-taking among employees.
2.8
39.2
41.2
19.6
46
Employees are encouraged to make

suggestions and offer constructive criticism.
3.2
24.3
32.5
43.2
48
We live quality in service, products, and

processes at all levels of the company.
3.5
15.3
33.1
51.6
49
We demonstrate fairness and consistency in

our supervision of employees.
3.5
14.1
31.9
54.0
Swissco. Survey Results for Culture Items

Item
Mean
%
Unfavorable
%
Neutral
%
Favorable
50
We expend too much energy on protecting our

turf.
3.4
21.9
23.2
54.8
51
We do an effective job of balancing strategic

performance with long-term success.
3.3
15.0
44.2
40.8
52
3.4
24.7
24.7
50.6
53

2.6
45.8
34.5
19.6
54
All employees understand the informal rules

that we operate with around here.
2.8
38.4
39.6
22.0
55
Informal communication channels are more

informative than formal communication
channels.
3.0
32.5
28.2
39.3
68
The slogan Proud of the past; Prouder of the

future reflects precisely our mission.
3.9
10.1
22.8
67.1
Culture Totals
3.1
28.9
34.5
36.6
Interpreting Scores
% Favorable Scores equal to or greater than 90% on

Desired Culture items or dimensions suggest alignment.
% Favorable Scores equal to or greater than 50% on
Current Culture items or dimensions are positive.
% Favorable Scores less than 50% on Current Culture
items or dimensions are considered somewhat negative.
A 10 percentage point difference between Current and
Desired Culture % Favorable Scores on individual items or
dimensions is considered significant.
Steps 4 to 6: Develop, Implement

and Monitor a Culture Management
Plan
Identify Strengths and Opportunities to Improve
Identify Areas of Focus and Analyze
Develop the Culture Management Plan
Implement the Culture Management Plan
Monitor Results
Appendix C:
The pyramid of organizational Development
Pyramid of Organizational Development
Corporate
Culture
Values Beliefs Norms
Management Systems
Planning
Accounting:
Billing
Payroll
Organization
Management
Development
Operational Systems
Production:
Marketing:
Shipping
Selling
Perf.
Mgmt.
Personnel:
Hiring
Compensation
Resources Management
Financial
Resources
Human
Resources
Technological and
Physical Resources
Products & Services

Develop Products (Services)
Markets
Define Market Segments and Niche
Business Foundation
Business Definition
Strategic Mission
Core Strategy

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UNIVERSITY OF LUGANO

MSCOM EXCELLENCE-IN-COMMUNICATIONS LECTURE SERIES

Measuring and Managing

Corporate Enigmas: The US

Corporate Enigmas: Europe

The Answer is Corporate Culture:

The Corporate Culture Enigma

Culture: The Invisible Asset

Research on Organizational Success

What role does Culture play in organizational

Research on Organizational Success and Failure

Survival, including the ability to continue to employ people

What is the Role that

Role of Culture in organizational Success

The Enigma of Wal*Mart

Wal*Mart vs. K-Mart, 1990s

Adjusted for splits

Wal*Mart vs. K-Mart, 2000-2003

Adjusted for splits

** K-Mart filed for

The Enigma of Wal*Mart

The Secret to Wal*Marts Success:

The Growth of Starbucks?

Starbucks Success is Not Just About Coffee

Starbucks Cultural Principles

Provide a great work environment and treat each other

Embrace diversity as an essential component in the way

Apply the highest standards of excellence to the

Develop enthusiastically satisfied customers all of the

Contribute positively to our communities and our

Recognize that profitability is essential to our future

What is Corporate Culture?

What is Organizational Culture?

A warm and sincere greeting. Use the guests

IBM Core Values

Respect for the individual.

Excellence in customer service.

Excellence in everything we do.

American Century Guiding Principles

Building a financially sound company.

Why is Culture Important?

Why is Culture Important?

Culture Influences The Success of People

Why is Culture Important?

Culture is a Key Building Block of Success

Why is Culture Important?

Culture is an Invisible Key to Success

Culture is a sustainable competitive

Why is Culture Important?

Culture Has a Direct Impact On

Research at Banner Corporation

Approximately $800 (US) million in revenue.

Divisional Cultural Buy-in vs. EBIT

Approval with Culture

What You Need to Know for Effective

Strong and Weak Cultures

What You Need to Know for Effective

Functional and Dysfunctional

A functional culture is one which enhances

Examples of Companies of Each Culture Type:

Where would you place the following:

What You Need to Know for Effective

The Difference Between Real and