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Human Capital - Trouble Ahead? The Big Issues HR in 2008 ( 435,518 bytes )


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Would you company make the list?

We know from the results of the FORTUNE Best Companies to Work for List that companies such as Google, who have won this award for the second time, win predominantly due to their culture. Simply google ‘Google’ and you will see various video’s of staff proudly discussing the culture and why it is so great to work there. The same can be said for Virgin Blue – look at their annual reports, the numbers and references to their successful culture literally jump off the pages. Why then do so many companies still question the benefits of culture…or are their doubts primarily around how to actually do it?

Culture management requires a disciplined, planned approach, as well as a high degree of passion for the cause, and a willingness to change oneself as a role model and leader. This combination is difficult to achieve, and consequently most organisations are having a go at culture without really understanding how to do so successfully. Creating and nurturing a culture in an organisation requires long term commitment and dedication. This is due to various factors including the varying values people have – however it can be done successfully, it can be measured and it can be reflected in bottom line results.

Since culture is a crucial factor in long term success, leaders must focus on and measure key dimensions of their organisations culture. This strategic cultural focus will facilitate organisations to realise their business strategies and find their mettle in dealing with their competitors. As Virgin Blue openly states “They can copy our planes, they can copy of fares, but they can’t copy our culture.”

Many executives appreciate the importance of culture, but struggle with where to start the culture process? First and foremost, you need to understand what culture you currently have. Every organisation has a culture, either organically or through an attempt to create a desired culture. It is critical howevcer that the culture you create is actually a culture that is going to facilitate the delivery of your strategy – the two must be aligned. Without a good culture, your strategy will fail.

 

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