A workplace that values adaptability, consistency, a clear direction and employee involvement is more likely to deliver better returns, sales growth, productivity and shareholder value, according to new research from the U.S.
- Businesses with the best organizational culture earned an average return-on-assets of 6.3% versus. 4.5% for firms with the lowest organizational scores.
- The top-quartile firms achieved average, one-year sales growth of 15.1%, as compared with 0.1% for the lowest-quartile group.
- The companies that achieved higher scores on mission, consistency, involvement and adaptability earned a return-on-assets difference totalling 40%.
- During a three-year period, the firms with the best scores around organizational culture significantly outperformed their industry peers, as well as the companies with the lowest organizational culture scores
BOTTOMLINE: These results represent a dramatic affirmation of the importance of organizational culture, and its link to real-world business results.