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Culture Cycle, The

How to Shape the Unseen Force that Transforms Performance

E-book Engels 9780132779807
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“Reading Jim Heskett’s book is not some vague exercise in academic idealism. It is a well-written, practical, compelling manual of how to build an enterprise that will endure for 100 years or more. You cannot afford to ignore it.”

—John C. Bogle, Founder, The Vanguard Group, and author of Enough: True Measures of Money, Business, and Life 


“Jim Heskett has delivered yet another breakthrough in our understanding of how corporate cultures shape performance. If leaders take Heskett’s sound advice to heart, corporate performance will improve and trust in business can be restored.”

—Bill George, Professor of Management Practice, Harvard Business School; former Chair and CEO of Medtronic; and author of Authentic Leadership 


“For those who might regard culture as an abstract, soft, perhaps ‘hippie like’ concept, Jim Heskett brings home its manifest value to both the organization and the sensibilities of its people.”

—Herb Kelleher, Executive Chairman and CEO Emeritus, Southwest Airlines Co.


“The Culture Cycle inspires leaders to start with people and shape their organizations’ cultures to drive engagement, inclusion, trust, innovation, and results. Jim Heskett has developed a new and valuable way to think about culture. This is a must read.”

—Jane Ramsey, Executive Vice President, Human Resources, Limited Brands, Inc.


“Forget the squishy fluff; this book is hardcore, rooted in the numbers that drive margin. It shows the calculations…reveals the numbers for the ‘report card’ that predicts the future success of your company, division, or department…numbers every leader should know…and few do.”

—Scott Cook, Co-Founder and Chairman of the Executive Committee, Intuit


“Jim Heskett’s is the essential handbook for today’s organizations that care about their people and are determined that theirs is an organization of the future.”

—Frances Hesselbein, President & CEO, Leader to Leader Institute (formerly the Peter F. Drucker Foundation for Nonprofit Management)


In The Culture Cycle, renowned thought leader James Heskett demonstrates how an effective culture can account for up to half of the differential in performance between organizations in the same business. A follow-up to the classic Corporate Culture and Performance (coauthored with John Kotter), this book explains how culture evolves, can be shaped and sustained, and can promote both survival and innovation in tough times.


Drawing on decades of field research and dozens of case studies, Heskett introduces a powerful conceptual framework for managing culture and demonstrates it at work in a real-world setting. Heskett’s “culture cycle” identifies policies, practices, and behaviors  that are crucial to moving cultures forward and demonstrates how to calculate the economic value of culture through the “Four Rs” of referrals, retention, returns to labor, and relationships with customers.


Heskett’s insights will be invaluable to leaders, professionals, and consultants in HR, productivity, training, and operations–and for anyone seeking to optimize organizational performance.


A crisis in organizational culture?

Inflated expectations, poor experiences, or both?


How cultures are born, grow, flourish, wither, and die

From founder to failure: understanding the lifecycle of culture


Measuring and tracking the effectiveness of organizational culture

Beyond “strong” cultures to “successful” cultures


Leading cultural change

What only leaders can do–and how they can do it most effectively



Uitgever:Pearson Education


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<p style="MARGIN: 0px">Acknowledgments &nbsp;&nbsp;&nbsp;&nbsp;x</p> <p style="MARGIN: 0px">About the Author &nbsp;&nbsp;&nbsp;&nbsp;xii</p> <p style="MARGIN: 0px">Introduction &nbsp;&nbsp;&nbsp;&nbsp;1</p> <p style="MARGIN: 0px">Two Visits, One Story &nbsp;&nbsp;&nbsp;&nbsp;3</p> <p style="MARGIN: 0px">Questions to Be Addressed &nbsp;&nbsp;&nbsp;&nbsp;12</p> <p style="MARGIN: 0px">How This Book Is Organized &nbsp;&nbsp;&nbsp;&nbsp;13</p> <p style="MARGIN: 0px">Chapter 1 A Crisis in Organization Culture? &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15</p> <p style="MARGIN: 0px">What Culture Is and Isn’t &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17</p> <p style="MARGIN: 0px">Stealth Weapon or Humanizing Effort? &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17</p> <p style="MARGIN: 0px">The Development of Interest in Organization Culture &nbsp;&nbsp;&nbsp;&nbsp;19</p> <p style="MARGIN: 0px">The Nature of an Organization’s Culture &nbsp;&nbsp;&nbsp;&nbsp;22</p> <p style="MARGIN: 0px">Culture and the Workplace &nbsp;&nbsp;&nbsp;&nbsp;35</p> <p style="MARGIN: 0px">Culture and the Long-Term Erosion of Job Satisfaction &nbsp;&nbsp;&nbsp;&nbsp;38</p> <p style="MARGIN: 0px">Chapter 2 Culture as “Know How” &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41</p> <p style="MARGIN: 0px">ING Direct: Shaping a Culture &nbsp;&nbsp;&nbsp;&nbsp;41</p> <p style="MARGIN: 0px">Culture and Purpose (“Know Why”) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45</p> <p style="MARGIN: 0px">Culture and Strategy (“Know What, When, Where”) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46</p> <p style="MARGIN: 0px">Culture and Execution (“Know Who”) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46</p> <p style="MARGIN: 0px">How Successful Managers View the Importance of Culture &nbsp;&nbsp;&nbsp;&nbsp;48</p> <p style="MARGIN: 0px">Culture in the Context of Purpose, Strategy, and Execution &nbsp;&nbsp;&nbsp;&nbsp;49</p> <p style="MARGIN: 0px">Chapter 3 Culture: A Multi-edged Sword &nbsp;&nbsp;&nbsp;&nbsp;55</p> <p style="MARGIN: 0px">Nature and Results of the 1992 Study &nbsp;&nbsp;&nbsp;&nbsp;59</p> <p style="MARGIN: 0px">Strong Cultures Affect Performance &nbsp;&nbsp;&nbsp;&nbsp;60</p> <p style="MARGIN: 0px">Strength of Culture Is Not Correlated with Good Performance &nbsp;&nbsp;&nbsp;&nbsp;61</p> <p style="MARGIN: 0px">Adaptability Keys Long-Term Success &nbsp;&nbsp;&nbsp;&nbsp;61</p> <p style="MARGIN: 0px">The Question of Fit &nbsp;&nbsp;&nbsp;&nbsp;62</p> <p style="MARGIN: 0px">The Role of Leadership &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65</p> <p style="MARGIN: 0px">Chapter 4 Culture in an Organization’s Life Cycle &nbsp;&nbsp;&nbsp;&nbsp;69</p> <p style="MARGIN: 0px">How Cultures Are Formed &nbsp;&nbsp;&nbsp;&nbsp;69</p> <p style="MARGIN: 0px">The Process of Culture Formation &nbsp;&nbsp;&nbsp;&nbsp;72</p> <p style="MARGIN: 0px">How Cultures Are Articulated and Institutionalized &nbsp;&nbsp;&nbsp;&nbsp;72</p> <p style="MARGIN: 0px">How Cultures Are Diluted &nbsp;&nbsp;&nbsp;&nbsp;75</p> <p style="MARGIN: 0px">Enemies of an Effective Culture &nbsp;&nbsp;&nbsp;&nbsp;77</p> <p style="MARGIN: 0px">How Cultures Are Renewed &nbsp;&nbsp;&nbsp;&nbsp;88</p> <p style="MARGIN: 0px">Reinforcing Effective Cultures &nbsp;&nbsp;&nbsp;&nbsp;90</p> <p style="MARGIN: 0px">Chapter 5 Economics of Culture: The “Four Rs” &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95</p> <p style="MARGIN: 0px">Economic Advantages of an Effective Culture: The “Four Rs” &nbsp;&nbsp;&nbsp;&nbsp;97</p> <p style="MARGIN: 0px">Culture Impact Model &nbsp;&nbsp;&nbsp;&nbsp;114</p> <p style="MARGIN: 0px">Several Caveats &nbsp;&nbsp;&nbsp;&nbsp;114</p> <p style="MARGIN: 0px">Chapter 6 The Culture Cycle: Measuring Effectiveness &nbsp;&nbsp;&nbsp;&nbsp;119</p> <p style="MARGIN: 0px">USAA: Effectiveness Through Trust &nbsp;&nbsp;&nbsp;&nbsp;121</p> <p style="MARGIN: 0px">Nucor Steel: A Study in Learning, Accountability, Self-Direction, and Innovation &nbsp;&nbsp;&nbsp;&nbsp;124</p> <p style="MARGIN: 0px">Toyota and the Importance of Alignment and Agility &nbsp;&nbsp;&nbsp;&nbsp;128</p> <p style="MARGIN: 0px">Measuring a Culture’s Strength &nbsp;&nbsp;&nbsp;&nbsp;132</p> <p style="MARGIN: 0px">Measuring a Culture’s Health: The Culture Cycle &nbsp;&nbsp;&nbsp;&nbsp;134</p> <p style="MARGIN: 0px">Measuring a Culture’s Fit &nbsp;&nbsp;&nbsp;&nbsp;146</p> <p style="MARGIN: 0px">Caveats &nbsp;&nbsp;&nbsp;&nbsp;147</p> <p style="MARGIN: 0px">Chapter 7 The Four R Model: A Field Test &nbsp;&nbsp;&nbsp;&nbsp;151</p> <p style="MARGIN: 0px">The Setting: RTL, Inc. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;151</p> <p style="MARGIN: 0px">The Research and Findings &nbsp;&nbsp;&nbsp;&nbsp;152</p> <p style="MARGIN: 0px">The Blind Results &nbsp;&nbsp;&nbsp;&nbsp;156</p> <p style="MARGIN: 0px">Blind Result Comparisons &nbsp;&nbsp;&nbsp;&nbsp;158</p> <p style="MARGIN: 0px">Caveats Regarding the Blind Estimates &nbsp;&nbsp;&nbsp;&nbsp;159</p> <p style="MARGIN: 0px">Comparisons of Culture Cycle Elements &nbsp;&nbsp;&nbsp;&nbsp;160</p> <p style="MARGIN: 0px">Management’s Interpretation of What Happened &nbsp;&nbsp;&nbsp;&nbsp;164</p> <p style="MARGIN: 0px">Conclusions &nbsp;&nbsp;&nbsp;&nbsp;165</p> <p style="MARGIN: 0px">Chapter 8 Culture and Innovation &nbsp;&nbsp;&nbsp;&nbsp;169</p> <p style="MARGIN: 0px">The Culture Cycle and 3M Innovation &nbsp;&nbsp;&nbsp;&nbsp;172</p> <p style="MARGIN: 0px">Levels of Innovation &nbsp;&nbsp;&nbsp;&nbsp;174</p> <p style="MARGIN: 0px">Adaptability and Innovation &nbsp;&nbsp;&nbsp;&nbsp;179</p> <p style="MARGIN: 0px">Value “Clusters” That Foster Innovation &nbsp;&nbsp;&nbsp;&nbsp;179</p> <p style="MARGIN: 0px">Innovation “Value Clusters” at Apple &nbsp;&nbsp;&nbsp;&nbsp;187</p> <p style="MARGIN: 0px">Chapter 9 Culture and Adversity &nbsp;&nbsp;&nbsp;&nbsp;197</p> <p style="MARGIN: 0px">Adversity and Response at Intuit &nbsp;&nbsp;&nbsp;&nbsp;197</p> <p style="MARGIN: 0px">Adversity and Response at BP &nbsp;&nbsp;&nbsp;&nbsp;200</p> <p style="MARGIN: 0px">9/11 and the Southwest Airlines Response &nbsp;&nbsp;&nbsp;&nbsp;203</p> <p style="MARGIN: 0px">Adversity and Response at Goldman Sachs &nbsp;&nbsp;&nbsp;&nbsp;204</p> <p style="MARGIN: 0px">So What? &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;209</p> <p style="MARGIN: 0px">The Fit Between Culture, Leadership Style, and the Nature of Adversity &nbsp;&nbsp;&nbsp;&nbsp;210</p> <p style="MARGIN: 0px">How Cultures Help and Hurt in Times of Adversity &nbsp;&nbsp;&nbsp;&nbsp;212</p> <p style="MARGIN: 0px">Culture as a “Filter” Between Adversity and Performance &nbsp;&nbsp;&nbsp;&nbsp;214</p> <p style="MARGIN: 0px">Chapter 10 Subcultures and Global Strategies &nbsp;&nbsp;&nbsp;&nbsp;219</p> <p style="MARGIN: 0px">Enter the Culturalists &nbsp;&nbsp;&nbsp;&nbsp;221</p> <p style="MARGIN: 0px">Global Management Challenges from Cultural Differences &nbsp;&nbsp;&nbsp;&nbsp;223</p> <p style="MARGIN: 0px">What Do These Vignettes Suggest? &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231</p> <p style="MARGIN: 0px">The Selection of Leaders &nbsp;&nbsp;&nbsp;&nbsp;239</p> <p style="MARGIN: 0px">Managing the Relationship Between Headquarters and Subsidiaries &nbsp;&nbsp;&nbsp;&nbsp;241</p> <p style="MARGIN: 0px">Organizing, Coordinating, and Controlling Effort &nbsp;&nbsp;&nbsp;&nbsp;243</p> <p style="MARGIN: 0px">Implications for Subcultures in General &nbsp;&nbsp;&nbsp;&nbsp;245</p> <p style="MARGIN: 0px">Chapter 11 Mission-Driven Organizations: Special Challenges &nbsp;&nbsp;&nbsp;&nbsp;251</p> <p style="MARGIN: 0px">Supergrowth &nbsp;&nbsp;&nbsp;&nbsp;251</p> <p style="MARGIN: 0px">Loss of Focus: “Mission Creep” &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;253</p> <p style="MARGIN: 0px">Making a Large Organization Seem Small &nbsp;&nbsp;&nbsp;&nbsp;255</p> <p style="MARGIN: 0px">Deploying Human Resources: The Challenge of Volunteer Labor &nbsp;&nbsp;&nbsp;&nbsp;255</p> <p style="MARGIN: 0px">Measuring and Rewarding Effectiveness Among an Organization’s Subcultures &nbsp;&nbsp;&nbsp;&nbsp;257</p> <p style="MARGIN: 0px">Coordinating Efforts with Other Mission-Driven Organizations &nbsp;&nbsp;&nbsp;&nbsp;259</p> <p style="MARGIN: 0px">Managing Board and Leadership Conflicts Concerning Basic Assumptions &nbsp;&nbsp;&nbsp;&nbsp;260</p> <p style="MARGIN: 0px">Controlling Zealous Behavior &nbsp;&nbsp;&nbsp;&nbsp;263</p> <p style="MARGIN: 0px">Chapter 12 Dealing with Forces That Challenge Organization Cultures Today &nbsp;&nbsp;&nbsp;&nbsp;267</p> <p style="MARGIN: 0px">Information and Communications Technology &nbsp;&nbsp;&nbsp;&nbsp;268</p> <p style="MARGIN: 0px">Increasing Emphasis on Transparency &nbsp;&nbsp;&nbsp;&nbsp;270</p> <p style="MARGIN: 0px">New Generations of Employees &nbsp;&nbsp;&nbsp;&nbsp;272</p> <p style="MARGIN: 0px">Team-Based Work &nbsp;&nbsp;&nbsp;&nbsp;276</p> <p style="MARGIN: 0px">Employment and Deployment Strategies &nbsp;&nbsp;&nbsp;&nbsp;277</p> <p style="MARGIN: 0px">The Rise of Free Agency &nbsp;&nbsp;&nbsp;&nbsp;281</p> <p style="MARGIN: 0px">The Psychological Shrinking of the World &nbsp;&nbsp;&nbsp;&nbsp;281</p> <p style="MARGIN: 0px">Chapter 13 Leading Culture Change &nbsp;&nbsp;&nbsp;&nbsp;285</p> <p style="MARGIN: 0px">How Do You Know Change Is Needed? &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288</p> <p style="MARGIN: 0px">Monitoring Links in the Culture Cycle: RTL, Inc. Revisited &nbsp;&nbsp;&nbsp;&nbsp;289</p> <p style="MARGIN: 0px">Changing a Culture &nbsp;&nbsp;&nbsp;&nbsp;297</p> <p style="MARGIN: 0px">Sustaining Culture Change &nbsp;&nbsp;&nbsp;&nbsp;305</p> <p style="MARGIN: 0px">Conclusions &nbsp;&nbsp;&nbsp;&nbsp;309</p> <p style="MARGIN: 0px">The Role of the Leader in Reshaping Culture &nbsp;&nbsp;&nbsp;&nbsp;310</p> <p style="MARGIN: 0px">Chapter 14 Answers and Questions &nbsp;&nbsp;&nbsp;&nbsp;317</p> <p style="MARGIN: 0px">Characteristics of Effective Cultures &nbsp;&nbsp;&nbsp;&nbsp;318</p> <p style="MARGIN: 0px">Economic Outcomes: Profit and Satisfied Stakeholders &nbsp;&nbsp;&nbsp;&nbsp;320</p> <p style="MARGIN: 0px">Behavioral Outcomes: Great Places to Work &nbsp;&nbsp;&nbsp;&nbsp;320</p> <p style="MARGIN: 0px">Some Final Thoughts &nbsp;&nbsp;&nbsp;&nbsp;322</p> <p style="MARGIN: 0px">Appendix A Sample Questions for Measuring the Strength and Health of a Culture &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;325</p> <p style="MARGIN: 0px">Appendix B Four R Assumptions and Computations &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;329</p> <p style="MARGIN: 0px">Appendix C Complete Results of Employee Surveys, 2009 and 2010, for Three RTL, Inc. Offices &nbsp;&nbsp;&nbsp;&nbsp;333</p> <p style="MARGIN: 0px">Endnotes &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;339</p> <p style="MARGIN: 0px">Index &nbsp;&nbsp;&nbsp;&nbsp;361</p>

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