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How Great Companies Think Differently

October 21, 2011

The attachment is a fantastic article I want to share about culture just released in the November issue of HBR (http://hbr.org/magazine) by Rosabeth Moss Kanter. 
Kanter provides current and very convincing examples of the importance of building a culture of performance excellence through interdependence and deep personal motivation. The article outlines six facets to what she calls "institutional logic"–the strategy of culture development that "radically alters leadership and corporate behavior: a common purpose; a long-term view; emotional engagement; community building; innovation; and self-organization." 

Here are a few excerpts: 

“Institutional grounding involves efforts to build and reinforce organizational culture, but it is more than that. Culture is often a by-product of past actions, a passively generated outgrowth of history. Institutional grounding is an investment in activities and relationships that may not immediately create a direct road to business results but that reflect the values the institution stands for and how it will endure.” 


"Institutional logic holds that companies are more than instruments for generating money; they are also vehicles for accomplishing societal purposes and for providing meaningful livelihoods for those who work in them. According to this school of thought, the value that a company creates should be measured not just in terms of short-term profits or paychecks but also in terms of how it sustains the conditions that allow it to flourish over time. These corporate leaders deliver more than just financial returns; they also build enduring institutions." 


"Utilitarian rationality is not the only force governing corporate performance and behavior inside organizations; emotions play a major role, too. Moods are contagious, and they can affect such issues as absenteeism, health, and levels of effort and energy. People influence one another, and in doing so they either increase or decrease others’ performance levels, as my study of teams and organizations on winning and losing streaks reveals (see my book Confidence, Crown, 2004)."

 

pdf document:  "How Great Companies Think Differently" by Rosabeth Moss Kanter

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