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The contribution of culture to organizational performance is substantial and quantifiable. In The Culture Cycle, renowned thought leader James Heskett demonstrates how an effective culture can account for 20-30% of the differential in performance compared with "culturally unremarkable" competitors.
Drawing on decades of field research and dozens of case studies, Heskett introduces a powerful conceptual framework for managing culture, and shows it at work in a real-world setting. Heskett's "culture cycle" identifies cause-and-effect relationships that are crucial to shaping effective cultures, and demonstrates how to calculate culture's economic value through "Four Rs": referrals, retention, returns to labor, and relationships. This book:
A follow-up to the classic Corporate Culture and Performance (authored by Heskett and John Kotter), this is the next indispensable book on organizational culture.
"Heskett (emer., Harvard Business School) provides an exhaustive examination of corporate policies, practices, and behaviors in organizations." Summing Up: Recommended.
Reprinted with permission from CHOICE, copyright by the American Library Association.
Acknowledgments x
About the Author xii
Introduction 1
Two Visits, One Story 3
Questions to Be Addressed 12
How This Book Is Organized 13
Chapter 1 A Crisis in Organization Culture? 15
What Culture Is and Isn’t 17
Stealth Weapon or Humanizing Effort? 17
The Development of Interest in Organization Culture 19
The Nature of an Organization’s Culture 22
Culture and the Workplace 35
Culture and the Long-Term Erosion of Job Satisfaction 38
Chapter 2 Culture as “Know How” 41
ING Direct: Shaping a Culture 41
Culture and Purpose (“Know Why”) 45
Culture and Strategy (“Know What, When, Where”) 46
Culture and Execution (“Know Who”) 46
How Successful Managers View the Importance of Culture 48
Culture in the Context of Purpose, Strategy, and Execution 49
Chapter 3 Culture: A Multi-edged Sword 55
Nature and Results of the 1992 Study 59
Strong Cultures Affect Performance 60
Strength of Culture Is Not Correlated with Good Performance 61
Adaptability Keys Long-Term Success 61
The Question of Fit 62
The Role of Leadership 65
Chapter 4 Culture in an Organization’s Life Cycle 69
How Cultures Are Formed 69
The Process of Culture Formation 72
How Cultures Are Articulated and Institutionalized 72
How Cultures Are Diluted 75
Enemies of an Effective Culture 77
How Cultures Are Renewed 88
Reinforcing Effective Cultures 90
Chapter 5 Economics of Culture: The “Four Rs” 95
Economic Advantages of an Effective Culture: The “Four Rs” 97
Culture Impact Model 114
Several Caveats 114
Chapter 6 The Culture Cycle: Measuring Effectiveness &nbs