Culture, in my mind, is the single most important attribute to successful companies. Inevitably, when things don’t go well for a company, the culture is what has a lot to say about whether or not you make it.
I think leaders should think of their culture as the first and most important business model that they create. It is the platform from which the more traditionally thought of business models emerge. A great culture enhances your ability to create great business models (and execute on them too!)
Interesting to read this right after reading in Business Week about how Martha Stewart's company is not doing well and part of the reason is CEO's have a tough time changing the entrenched culture there. So now they have a guy from a scrap metal company who specializes in company CPR. We shall see.
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I agree that culture is a very important component of the success of any business. In addition, though, management ability counts for a lot too. Former CEO Jack Welch said that when you put the right person in a key spot in the organization, it can make a huge difference in how it performs. At the same time, the economics of the business matter as well. To paraphrase Warren Buffett again, he often said that when you put a businessman with a reputation for brilliance in charge of a business with a reputation for bad economics, it’s usually the business that emerges with its reputation intact.
ReplyDeleteReputation is the most valued asset of a company (and of an individual)
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