Total Executive Newsletter - Culture is King

A recent newsletter from Total Executive talks about the importance of culture - the key to long term success
Total Executive Membership Newsletter
Culture is King
CULTURE follows Leaders...

Hello

Culture will make or break your business toward 2020 and beyond...

Leaders define CULTURE - View videos and articles on Culture HERE

In This Edition:



Cultural Research

Cultural Leadership

Total Executive have interviewed over 3000 innovative SME owners and executives in corporate, enterprise and government to learn their key to competitive advantage in Australia and overseas

Culture is KEY to competitive advantage NOW

View the top level research results which shows currently Australia have several cultural concerns as explained here

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How Culture affects Your Future

Culture Video

A Great Leader Inspires Cultural Change

This video from one of our service providers explains how important culture is here


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Keys to Successful Entrepreneurs - a Comparison of Western and Eastern Cultures

Recently I had the opportunity to meet with Peter Church, Founder and Chairman of AFG Venture Group and author of Added Value - The life Stories of Indian Business Leaders.

You can review the book review here

My discussion with Peter was about leadership and success. Peter gave some interesting thoughts on the differences between leadership in Eastern and Western cultures.

Peter is well connected with eastern societies. He has spent almost all of his career working and living in the Asian region as an international lawyer and corporate advisor.

Now, with the AFG Venture Group Peter provides corporate advice across Australia, South East Asia and India, including special counsel to Blake Dawson, a leading Australian law firm.

Peter was awarded an OAM for his services toward the promotion of Australian business in South-East Asia.

I began with asking Peter what his personal interpretation of 'Responsible Leadership' entailed?

Peter wanted to compare western and eastern entrepreneurs and the keys to success as entrepreneurs in relation to that subject of leadership.

Peter explains, in Australia one may not need much of a  moral compass in how to act responsibly. However, in Asia it is much more important to have strong bearings on what is responsible or not.

This is because in western cultures most of us grow up learning what is right and wrong at home, in school and through religion and the media, whereas in a number of developing countries children grow up with corruption all about them and thus it is much harder to develop that moral compass without much stronger guidance from parents and others. 

The rise of  the importance of corporate governance  in the West is starting to have a positive  impact  in developing countries as  these Western businesses go global. And yet, in many developing countries the higher you are, the less likely you are to get in trouble for breaching the law or not behaving responsibly.

Certainly most developing countries have laws or regulations which are as good as ours but the problem is enforcement.

The US Foreign Corrupt Practices Act  which I believe came into force in the 80's had a big impact on US businesses operating in countries where corruption was rampant.  The legislation acted outside the US and a US citizen could be found to be in breach, not just because he knew a practice in which he was involved was corrupt but because he ought to have known.

This put US business at a disadvantage in winning contracts in countries where corrupt practices flourished and so over the years the US has put pressure on many countries, including Australia to follow their legislation.

And in Peter's experience more and more Western businesses are requiring their executives working in countries where corruption is a part of life to adhere to the same levels of corporate governance as they would in the country of their home office.

In his book Added Value, Peter interviews 30 of India's top business leaders. What he found their best attributes revolve around their perseverance and charisma.

The level of competition in India is at a level most Australians could not begin to contemplate. So to rise to the top in such an environment requires in almost all cases exceptional talent, hard work, timing, perseverance and that mercurial quality of "luck". 

One commonality of all the leaders Peter interviewed has been  that they all have shared  their success with the less fortunate.

The Indian Government has little or no capacity to support the poor or infirm.

And so, it has become the norm upon achieving a certain level of economic success for most successful Indian entrepreneurs to create and support their own charities.

For example, Shahnaz Husain of ayervedic fame set up a school for the deaf and dumb to learn how to massage - silence being for most customers an important part of a good massage!

 

Through Peter's book you can learn the secrets about the Leaders - their ups, downs and success that enable them to give back...

Leaders interviewed are featured below:

 Raghav Bahl - Network 18

Raghav Bahl, 48 years, is the Founder, Controlling Shareholder and Managing Director of Network 18. Raghav began his career as a management consultant with A.F. Ferguson & Co. followed by a stint with American Express Bank before he turned to his first love, media. Winner of the Sanskriti Award for Journalism in 1994, Raghav has over 22 years’ experience in television and journalism. He founded TV18 (now Network18 Group) in 1993.

 Rahul Bajaj
Bajaj Group

Rahul Bajaj is the Chairman of the Bajaj Group, which ranks among the top 10 business houses in India. The Bajaj Group has diversified interests ranging from automobiles, home appliances, lighting, iron and steel, insurance, travel and finance. Rahul Bajaj is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

 Kishore Biyani
Future Group

Kishore Biyani is an entrepreneur who has been credited with changing the face of modern retailing in India, with the introduction of innovation designed discount hyper markets and forming the concept of destination malls.

His company, Future Group operates 3 million square feet of retail space spread across 25 cities in India. He has been called India's own Sam Walton.

Bloomberg Businessweek listed him among India's 50 Most Powerful People in 2009.[1]

 Subhash Chandra
Essel Group/Zee TV 

Subhash Chandra, the Chairman of the Essel Group, is among the leading lights of Indian industry. A self-made man, Chandra has consistently demonstrated his ability to identify new businesses and lead them on the path to success.

 Dr Anand Deshpande
Persistent Systems 

He is a member of the Association for Computing Machinery (ACM), Institute of Electrical and Electronics Engineers (IEEE), Computer Society of India (CSI) and the Young Presidents' Organisation (YPO). He currently serves on the executive committee of the National Association of Software and Services Companies (NASSCOM) and Maharashtra Chamber of Commerce Industries and Agriculture (MCCIA).

Arun Firodia - Kinetic Group
 is a rare combination of a brilliant Engineer and an astute Businessman. He is the Chairman of Kinetic Group, India's leading manufacturers and exporters of two wheelers. A leading Industrialist, he is also a Social activist.

Captain G. R. Gopinath (Kannadaಗೋರೂರು ಗೋಪಿನಾಥ ) is a graduate of the National Defence Academy and has served the Indian Army. He is considered the father of low cost air travel in India and launched India's first low cost airline, Air Deccan.

To combat AIDS, YUSUF K. HAMIED insisted that supply meet demand.

Shahnaz Husain, the pioneer and leader of herbal care in India, has achieved unprecedented international acclaim for her practical application of Ayurveda. With a burning desire to recapture an ancient heritage, Shahnaz Husain has taken India's Ayurvedic tradition to every corner of the globe. 

Today, Bharat Forge is one of the two largest forging companies in the world, supplies engine parts to China and has manufacturing plants in India and Germany

Mr. Habil Khorakiwala, the Chairman of Wockhardt Limited, founded the company in the early 1960s. Under his dynamic leadership, Wockhardt has emerged as a leading biotechnology and pharmaceutical company, driven by research and global strategies. Today, Wockhardt has an annual turnover of US$ 650 million, and a market capitalisation of over $ 1 billion. 

Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 50 years, is the Executive Vice-Chairman and Managing Director of the Bank, and its principal founder and promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of Management Studies.

In 1985, when he was still in his early twenties, Mr Kotak thought of setting up a bank when private Indian banks were not even seen in the game.

Harsh Mariwala
Marico

Harsh C. Mariwala leads Marico Limited (Marico) as its Chairman and Managing Director

Over the last 3 decades, Harsh Mariwala has transformed a traditional commodity driven business into a leading Consumer Products & Services Company, in the Beauty and Wellness space

Subash Menon
Subex 

Subash Menon founded Subex in 1992 and has been its CEO since inception. Under his stewardship, Subex has transformed from a Systems Integrator in the telecom hardware space to a leader in the telecom software space with a niche focus in revenue maximization. Subash charted Subex's growth from its humble origins as a one-man company to a global thought leader in the telecom software space

NR Narayana Murthy
Infosys 

N. R. Narayana Murthy is the Founder-Chairman of Infosys Technologies Limited, a global software consulting company headquartered in Bangalore, India. He founded Infosys in 1981. 

Mr. Murthy articulated, designed and implemented the Global Delivery Model which has become the foundation for the huge success in IT services outsourcing from India. He has lead key corporate governance initiatives in India. He is an IT advisor to several Asian countries.

Captain CP Krishnan Nair
The Leela Palaces, Hotels and Resorts 

Capt. Nair (Chairman) pioneered the export of fabrics to the USA in the late 1950s with the “Bleeding Madras” fabric. He was the first in the organized sector to set up a unit to produce cotton laces in India with Scottish Collaboration in Leela Scottish Lace Private Limited. He was also instrumental in organizing the “Small Exporters’ Guild” which helped many small exporters. He promoted The Leela Kempinski Mumbai in 1986, The Leela Kempinski Goa in 1990 and The Leela Palace Kempinski Bangalore in 2001.

Deepak Parekh
HDFC

Deepak Parekh stepped down as chairman of Housing Development Finance Corporation (HDFC) Limited, an Indian company providing home loans. A chartered accountant by profession, he started his career with Ernst and Ernst Management Consultancy Services in New York. 

Deepak Puri
Moser Baer India

Deepak Puri provides strategic direction to the company. He is the driving force in creating an environment of integrity by ensuring fair business practices and profound respect for Intellectual Property Rights. It is his ceaseless quest for human capital development that has helped steer the company along a continuous growth path.

AVS Raju
Nagarjuna Construction Company 

The company aims at achieving transparency, accountability and equity in all facets of its operations, and in all interactions with the stakeholders, including the shareholders, employees, government, lenders and other constituents while fulfilling the role of a responsible corporate representative committed to good corporate practices. The company is committed to achieve the good standards of corporate governance.

Arun Bharat Ram
SRF

Mr Arun Bharat Ram, Chairman of SRF Limited is an alumnus of the University of Michigan, U.S.A. He set up SRF in 1970 as a manufacturer of nylon tyre cord, which over the years has not only diversified but has also acquired global leadership in most of its businesses. His strong support of initiatives of corporate governance, Total Quality Management and professionalisation of management led to SRF’s Industrial Synthetics Business winning the coveted global Deming Award in 2004.  

CK Ranganathan
CavinKare 

C K Ranganathan, chairman and managing director of CavinKare, has shown the world it is possible to beat the multinationals even in the most difficult market of fast moving consumer goods.

GM Rao
GMR Group 

A visionary businessman, G M Rao recognised the huge business potential in entering the infrastructure space, with the opening up of the power sector in the 90s in India. Under his guidance, the Group is now developing several power projects in various parts of India & abroad and is also expanding its presence globally. 

Dr K Ravindranath
Global Hospitals

Global Hospitals was founded by Dr. K. Ravindranath, an internationally renowned Surgical Gastroenterologist and his associates in Hyderabad in 1998. Though Dr. Ravindranath had to wait a while for the passage of the Human Organs Transplantation Act before he could design and build Global Hospitals, it soon became a synonym for outstanding and compassionate health care.

Dr Anji Reddy
Dr Reddy's Laboratories

Under Dr. Anji Reddy’s leadership, Dr. Reddy’s has become a pioneer and a trendsetter in the Indian Pharmaceutical industry. It turned the Indian bulk drug industry from import-dependent in the mid-80s to self-reliant in the mid-90s and, finally, into the export-oriented industry that it is today. Dr. Reddy’s was the first company to begin drug discovery research in India in 1993 and has led the industry in turning from ‘copycats’ into innovators. 

GVK Reddy
GVK Group

GVK is a diversified business house. With a predominant focus on infrastructure - power, roads and urban infrastructure. The Company also have a significant position in services and manufacturing.

Kiran Mazumdar Shaw
Biocon 

A successful technocrat of global standing, Ms. Shaw heads India’s leading Biotechnology enterprise, Biocon. She is highly respected in the corporate world and was recently named among TIME magazine’s 100 most influential people in the world. Her pioneering efforts in biotechnology have drawn global recognition both for Indian Industry and Biocon.

Shashi Kiran Shetty
Allcargo Global Logistics

In 1982 Mr Shetty set up TransIndia Freight Services to cater to liner shipping services.

He has served as ex-trustee of Mumbai Port Trust and as the Vice-Chairman of the Association of Multimodal Transport Operators of India (AMTOI). Mr. Shetty has been appointed as the Chairman & Managing Director since the inception of the Company.

Vijaypat Singhania
Raymond 

When Dr. Vijaypat Singhania took over the reins of the company in 1980, he injected fresh vigour into Raymond, transforming it into a modern, industrial conglomerate.

Vijaypat is famous for his 'Hot Air Travels' A keen aviator, Singhania holds the world record for highest altitude gained travelling in a hot air balloon, notably carried out at the age of 67[1].

Professor MS Swaminathan
The MS Swaminathan Research Foundation 

Professor M S Swaminathan has been acclaimed by the TIME magazine as one of the twenty most influential Asians of the 20th century and one of the only three from India, the other two being Mahatma Gandhi and Rabindranath Tagore. He has been described by the United Nations Environment Programme as “the Father of Economic Ecology” and by Javier Perez de Cuellar, Secretary General of the United Nations, as “a living legend who will go into the annals of history as a world scientist of rare distinction”. He was Chairman of the UN Science Advisory Committee set up in 1980 to take follow-up action on the Vienna Plan of Action. 

 

Added Value - The Life Stories of Indian Business Leaders

by Peter Church

This inspirational book combines invaluable advice with remarkable and candid inside stories of thirty Indian business leaders. Uncompromising vision, a willingness to take risks and exceptional business acumen enabled these leaders to add value to the business fabric of India.

Through a series of interviews Peter Church details the paths they travelled, the obstacles they overcame and the important lessons they learnt along the way. Not only do these stories provide guidance to young entrepreneurs trying to decide whether and how to embark upon a business career, but they also provide valuable insights to those looking for tie-ups and investment in India.

Enlightening and fascinating, Added Value celebrates larger-than-life ambition, inspired leadership, hard work and the twists and turns of fate.

You can purchase 'Added Value' here

 

Another directors report by Grant Crossley

The Impact of Professionally Conducted Cultural Programs on Older Adults

Executive Summary

In 2001, the National Endowment for the Arts developed a cooperative agreement with The George

Washington University to conduct a multisite national study with the aim of measuring the impact of

professionally conducted community based cultural programs on the general health, mental health,

and social activities of older persons, age 65 and older. Referred to as the Creativity and Agingthe project’s formal title is “The Impact of Professionally Conducted Cultural Programs on

Study,

Older Adults”. No previous study of this nature using an experimental design and a control group

The study takes place in three different sites across the country—the metro Washington, DC area;

Brooklyn; and San Francisco. Each site involves two groups—(1) the Intervention Group, comprised

of older individuals involved in a weekly participatory art program, and (2) those involved in a

Control Group, comprised of individuals involved in their ongoing activities as usual. Each site

recruited at least 100 older persons—50 participants in the Intervention Group and Control Group

alike. The overall study has had 300 participants—150 in the Intervention Groups, 150 in the Control

Groups. The average age in all three sites, Intervention and Control Groups alike, was approximately

80 years of age, The age range has been 65-103 years. Approximately 30 percent of the participants

reflect racial and ethnic minorities.

The groups were very well matched in level of functioning at the start of study, with very similar

physical health, mental health, and level of activity profiles. They were all interviewed three times by

research assistants—(1) at the start of the study to establish a baseline; (2) a year later; and finally (3)

two years after the baseline assessment.

Results reveal strikingly positive differences in the intervention group (those involved in intensive

participatory art programs) as compared to a control group not involved in intensive cultural

programs. Compared to the Control Group, those involved in the weekly participatory art programs,

at the one and two year follow-up assessments, reported: (A) better health, fewer doctor visits, and less

medication usage; (B) more positive responses on the mental health measures; (C) more involvement in

overall activities.

Since the study has collected so much rich data, analyses—especially secondary data analyses—are

expected to go on throughout 2007. There is considerable interest on the parts of graduate students

to assist in the analyses of the secondary data.

In conclusion, these results point to powerful positive intervention effects of these community-based

art programs run by professional artists. They point to true health promotion and disease preventionIn that they also show stabilization and actual increase in community-based activities in

effects.

general among those in the cultural programs, they reveal a positive impact on maintaining

independence and on reducing dependency. This latter point demonstrates that these communitybased

-------------------------

The Creativity and Aging Study — April 30, 2006 — page 1 of 8 — Final Report

 

SPONSORS

:
  • National Endowment For The Arts (NEA)—(Lead Sponsor)
 
  • Center for Mental Health Services, SAMHSA, DHHS
  • National Institute of Mental Health (NIMH), NIH
  • AARP/National Retired Teachers Association
  • Stella and Charles Guttman Foundation, NYC
  • International Foundation for Music Research

-------------------------

 

 

Primary Investigator

: Gene D. Cohen, M.D., Ph.D.

Coordinating Site:

The Center on Aging, Health & Humanities,

The George Washington University (GW)

The study is administered through a cooperative agreement

of the National Endowment for the Arts with GW

-------------------------

 

PARTICIPATING SITES

:

Elders Share the Arts (ESTA), Brooklyn, New York

Project Director:

Susan Perlstein

----------

Center for Elders and Youth in the Arts (CEYA)

Institute on Aging, San Francisco, California

Project Director:

Jeff Chapline, MFA

-----------

The Levine School of Music, Washington, DC

Project Director:

Jeanne Kelly

_____________________________________________________________________________

Overview of Study in Brief

In 2001, the National Endowment for the Arts developed a cooperative agreement with The

George Washington University to conduct a multisite national study with the aim of measuring the

impact of professionally conducted community based cultural programs on the general health, mental

health, and social activities of older persons, age 65 and older. Referred to as the Creativity andthe project’s formal title is “The Impact of Professionally Conducted Cultural Programs

Aging Study,

on Older Adults”. No previous study of this nature using an experimental design and a controlResults reveal strikingly positive differences in the intervention group

group had been carried out.

(those involved in intensive participatory art programs) as compared to a control group not involved

in intensive cultural programs.

Objective of Study

The objective of this project has been to evaluate the effects relevant to general health, mental health,

overall functioning, and sense of well being in older persons caused by active participation in cultural

programs provided by professional artists involved in visual and literary arts, music, and other cultural

The Creativity and Aging Study — April 30, 2006 — page 2 of 8 — Final Report

domains. These programs draw upon a range of art and cultural disciplines, such as painting, pottery,

dance, music, poetry, drama, material culture, and oral histories in a creative context.

Historical Context Of Study

We are at the second major turning point in the contemporary focus on aging—that being looking at

potential beyond problems. This focus on potential has profound possibilities for advancing health

maintenance, health promotion, and disease prevention efforts. Societal interest in potential in later

life is soaring, and it is in this context that a project studying how cultural programs affect older

persons could not be more timely.

Theoretical Background for the Study

The theoretical background for this study builds upon two major bodies of gerontologic research: (1)

Sense of Control and (2) Social Engagement. Studies on aging show that when older persons

experience a sense of control—e.g., a sense of mastery in what they are doing—positive health

outcomes are observed. Similarly, when older individuals are in situations with meaningful social

engagement with others, positive health outcomes are also observed, Biological studies reveal the

involvement of mind-immune system pathways playing a protective role here, as described in research

on psychoneuroimmunology. In this study, both of these dimensions—individual sense of control

and social engagement—are combined. Each time one attends an art class, he or she experiences a

renewed sense of control—ongoing individual mastery. Since all of the art programs involve

participation and interpersonal interaction with others, social engagement is high.

Study Design In Brief

The study was initiated in the fall of 2001. To be eligible for the intervention (art) and control groups,

one needed tbe 65 years of age or older and generally living independently at the start of the study.

The intervention group participants were all involved in intensive community-based art programs,

conducted by professional artists, meeting weekly for a period of approximately 9 months a year for

two years, with additional time for concerts, exhibitions, and the like. Time was also spent between

sessions on practicing and ongoing artistic work. The control group was actively involved in a range

of community activities, but not in intensive art programs conducted by professional artists.

Both the intervention and control groups, at all three sites, had an average age of approximately 80 at

the start of the study. The age range was 65-100. The intervention and control groups each had 150

participants, for a total of 300 in the study as a whole. Approximately 30% of the subjects

represented racial and ethnic minorities. Baseline measures obtained via face-to-face administered

questionnaires, in comparing both groups, were very similar at the start of the study. Measures were

then repeated yearly for two years.

Measures were obtained through five questionnaires in three domains of functioning:

1. General Heath Assessment, assessing health and problems across the systems of the body,

medication usage, and health utilization data (e.g., doctor visits).

2. Mental Heath Assessment, utilizing (A) The Geriatric Depression Scale (Short-Form); (B) The UCLA

Loneliness Scale; (C) The Philadelphia Geriatric Center Morale Scale.

3. Social Functioning Assessment, utilizing a detailed inventory of the subjects’ activities, with

The Creativity and Aging Study — April 30, 2006 — page 3 of 8 — Final Report

attention to the nature of the activities and their frequency and duration.

Perspective on Measures of Success

Before listing findings, one should consider an important perspective that persons in the field of aging

would point out regarding expectations around results from this study. Given that the average age of

the subjects was around 80—greater than life expectancy in the U.S.—clinicians and researchers

alike would generally consider interventions in this age group successful, in terms of positive health

and social functioning effects, if there was less decline than expected over time in the intervention

group as compared to control group.

The significance of the art programs is that they foster sustained involvement because of their beauty

and productivity. They keep the participants involved week after week, compounding positive effects

being achieved. Many general activities and physical exercises do not have this high engaging,

thereby sustaining, quality.

Results

NOTE:

This study had a staggered start, beginning with the Chorale in Washington, DC in September

2001, followed by Art Groups in New York City, and then in San Francisco, along with Control

Groups in all three sites. Data from all three sites are still being analyzed, with secondary analyses

continuing into 2007. Results follow:

Physical Health and Health Services Utilization—Findings

Washington, DC Area Site

 

  • Overall Health: After a year, those participating in the cultural program reported an increase in

overall health, while those in the control group reported a decline. After two years, those in the

cultural program essentially reported stabilization in overall health, while those in the control group

report a decline.

  • Doctor Visits: Those in the control group reported a greater increase in the number of doctor visits

than those in the cultural program.

  • Prescription Medication Usage: Those in the control group reported a greater increase in the

number of prescription medications utilized than those in the cultural program.

  • Over-The-Counter Medication Usage: Those in the control group reported a greater increase in

the number of over-the-counter medications utilized than those in the cultural program.

  • Falls: Those participating in the cultural program reported a decrease in falls, while those in the

control group reported an increase.

New York City Site

 

  • Description of Health: After a year, both those in the cultural programs and the control reported

better health, but the improvement was greater in the cultural programs.

  • Number of Doctor Visits: From year 1 to year 2, both the cultural groups and the control group

The Creativity and Aging Study — April 30, 2006 — page 4 of 8 — Final Report

reported a decrease in the number of doctor visits, but the reduction was significantly greater among

those in the cultural programs.

  • Medication Usage: From year 1 to year 2, trend data revealed a slightly greater increase in

medication utilization among the control group as compared to the cultural programs.

San Francisco Site

 

  • Description of Health: After a year, participants in the cultural programs reported an increase in

their overall health, while those in the control group reported a decline.

  • Number of Doctor Visits: After a year, participants in both the cultural programs and the control

group reported a decline in doctor visits, but those in the cultural programs reported a greater decline.

  • Medication Usage: After a year, those in the cultural programs reported a decline in medication

usage, while those in the control group reported an increase.

  • Falls: After a year, participants in both the cultural groups and the control group reported a decline

in falls, but the reduction was greater among those in the cultural programs.

Mental Health—Findings

Washington, DC Area Site

 

  • Morale: Participation in the cultural programs had a more positive impact on morale than being a

part of the control group

  • Depression: Over a two-year period, those in the cultural programs improved on the depression

assessment, while those in the control group did less well.

  • Loneliness: Data on participants in both the cultural program and the control group revealed a trend

toward improvement.

New York City Site

 

  • Morale: Trend data suggest that participation in the cultural programs had a slightly more positive

impact on morale than being in the the control group.

San Francisco Site

 

  • Morale: Trend data suggest an improvement in morale among those participating in cultural

programs, with a decrease among those in the control group.

  • Depression: Trend data suggest that participation in the cultural programs had a more positive

impact on depression than being a part of the control group.

-------------------

NOTE:

Across groups, qualitative, descriptive accounts by staff depict more a more positive impact

on the mental health measures among those participating in the cultural programs as opposed to those

in the control group.

The Creativity and Aging Study — April 30, 2006 — page 5 of 8 — Final Report

Involvement in Social and General Activities—Findings

Washington, DC Area Site

 

  • Over a two-year period those participating in the cultural program reported an increase in the total

number of activities they were involved with, while those in the control group reported a reduction.

New York City Site

 

  • From Year-1 to Year-2 of the study, those in the cultural programs reported a significantly greater

 

increase

in the overall number of activities they were involved with as compared to the control group.

San Francisco Site

 

  • Trend data point to those in the cultural programs reporting a greater increase in the overall number

of activities they were involved with as compared to the control group.

 

Conclusions From Results

NOTE:

What is remarkable in this study is that after just a year into the study the cultural groups, in

contrast to the control groups, were showing areas of actual stabilization and improvement apart from

decline—despite an average age which is greater than life expectancy. This pattern then continued

throughout year two of the study. These results point to powerful positive intervention effects of

these community-based art programs run by professional artists. They point to true health promotionIn that they also show stabilization and actual increase in

and disease prevention effects.

community-based activities in general among those in the cultural programs, they reveal a positive

impact on maintaining independence and on reducing dependency. This latter point demonstrates

Next Steps

Due to the staggered start among the three research sites, analyses (primary and secondary) are still in

progress. Since the study has collected so much rich data, secondary data analyses are expected to go

on throughout 2007. There is considerable interest on the parts of graduate students to assist in the

analyses of the secondary data.

Dissemination of Results to Date

Publications

 

As of April 2006, there have been three publications of the initial results of the study, with two others

pending.

1.

In the new book of Dr. Gene Cohen, The Primary Investigator and Project Director of the study:

Cohen, G. D. (2006). The Mature Mind: The Positive Power of the Aging Brain. New York: Basic

Books.

2.

In the following publication (“The Older Learner”) of the American Society on Aging:

Cohen, G. D. (2005). National study documents benefits of creativity programs for older adults. The(2): 1, 6.

Older Learner, 13

3.

The initial results, presented at the April 16, 2004 Annual meeting of the American Society on

The Creativity and Aging Study — April 30, 2006 — page 6 of 8 — Final Report

Aging, published for public access on the Website of George Washington University's Center on

Aging, Health & Humanities: http://www.gwumc.edu/cahh/rsch/nea_study.htmPresently, a major publication on the study is anticipated by June of 2006 in “Generations”, a

4.

journal of the American Society on Aging.

5.

Presently, a major publication is in process, having been submitted to “The Gerontologist” at The

Gerontologic Society of America.

6.

In a series of new publications that will be appearing throughout 2006-2008 as additional data

analyses—especially secondary data—are completed.

Selected Presentations at Scientific, Professional, and National Meetings

 

Numerous presentations have been made at major scientific and professional meetings throughout the

country, with many new presentations scheduled. Selected presentations to date include:

  • The Annual Meetings of the American Society on Aging—2002, 2003, 2004, 2005, 2006

(scheduled)

  • The 2004 Annual Meeting of The Gerontologic Society of America (and scheduled for 2006 Annual

Meeting)

  • The 2004 Annual Meeting of the Society of the Arts in Health Care (and scheduled for 2006 Annual

Meeting)

  • The 2005 Mini Conference on Creativity and Aging for the 2005 White House Conference on

Aging

  • The 2005 Annual Meeting of the Wallace Foundation
  • The 2005 Annual Meeting (“Creative Connections”) of National Guild of Community Schools of

the Arts

  • The 2005 Annual Meeting of the American Art Therapy Association
  • The 2005 Annual Meeting of Grant Makers in Aging
  • The 2006 Annual Meeting of the American Society on Aging
  • The 2006 Annual Meeting of the Society for the Arts in Health Care
  • In addition, numerous other university-based, state, local, and other presentations have been made

about the study since it began in 2001. Many others are being scheduled.

Public Media

 

Media coverage of this Creativity and Aging Study has been truly extensive, and too numerous to

delineate. Two of the biggest coverages have been:

  • The Associated Press coverage in 2004 that appeared in 200 newspapers around the world. Dr.

Cohen was inundated with calls following this coverage, leading to the publication of early results for

public access on his Center’s website delineated above.

  • Coverage of the study by The CBS Evening News with Dan Rather, following the presentation of

initial results at the 2004 Annual Meeting of the American Society on Aging. Online viewing of this

CBS coverage can be accessed at the following web address:

http://www.cbsnews.com/stories/2004/05/21/eveningnews/main618935.shtml

  • Since publication of Dr. Cohen’s new book, “The Mature Mind” (the last chapter focusing on the

Creativity and Aging Study, in January of 2006, Dr. Cohen has had more than 100 media interviews,

many of which expressed particular interest in the Creativity and Aging Study.

NOTE: This Final Report Concludes with selected Snapshots

of Participants from the 3 Study Sites.

 

The Creativity and Aging Study — April 30, 2006 — page 7 of 8 — Final Report

Participant in one of the Brooklyn art making

groups, reflecting on her newly found sense of

meaning and mastery: “This is my first time as

an artist. Before one year ago, I only knew work”.

Member of a largely Spanish speaking,

jewelry making group, at the Brooklyn site,

describing the impact of this experience on

his marriage. “This class saved my marriage.

I make my wife something beautiful every

week.”

SNAPSHOTS OF PARTICIPANTS FROM THE 3 STUDY SITES

Oldest participant in the study—turned

101 during 2005—reading the poem he

wrote to the Brooklyn site poetry group.

These groups provide strong camaraderie.

The Senior Singers’from the

Chorale

Washington, DC

area study site,

performing at the

Millennium Stage

of the Kennedy

Center—one of

several appearances

they have made

there.

Participants in the

art groups of the

San Francisco site,

demonstrating their

accomplishment of

mastery and control,

and sense of

satisfaction in the

process.

The Creativity and Aging Study — April 30, 2006 — page 8 of 8 — Final Report

that these community-based cultural programs for older adults appear to be reducing risk factors

that drive the need for long-term care.

cultural programs for older adults appear to be reducing risk factors that drive the need for

long-term care.

had been carried out.

Source: Arts

What's Needed Next: A Culture of Candor

 

If there's one thing that the past decade's business disasters should teach us, it's that we need to stop evaluating corporate leaders simply on the basis of how much wealth they create for investors. A healthier yardstick would be this: the extent to which leaders create firms that are economically, ethically, and socially sustainable. The first step toward accomplishing that task is to create a culture of candor. Companies can't innovate, respond to stakeholder needs, or run efficiently unless the people inside them have access to timely, relevant information, point out professors O'Toole, of the University of Denver's Daniels College of Business, and Bennis, of the University of Southern California. Increasing transparency can be an uphill battle against human nature, however. The obstacles are numerous: macho executives who don't listen to their subordinates or punish them for bringing bad news; leaders who believe that information is power and hoard it; groupthink among team members who don't know how to disagree; boards that fail to question charismatic CEOs. Nevertheless, leaders can take steps to nurture transparency. By being open and candid, admitting their errors, encouraging employees to speak truth to power, and rewarding contrarians, executives can model the kind of conduct they want to see. Training employees to handle unpleasant conversations with grace also will break down barriers to honest communication. To avoid being blinded by biases, leaders can diversify their sources of information - an obvious measure that's rarely taken. Perhaps the biggest lever for cultural change is the executive selection process - choosing leaders for their transparent behavior, not just their ability to compete. And a few companies have even gone so far as to share all relevant information with every employee.

A Cultural Fix for Risk Management Failure

A Cultural Fix for Risk Management Failure
by Peter T. Golder and Thorsten Liebert

4/09/09
How to create a culture that combines healthy risk taking with effective risk management.

Want to buy a pile of second mortgages with a loan-to-equity value of 99 to 1, and scant documentation on borrower qualifications? (By the way, those borrowers might not live in the homes they’re mortgaging.) And, sure, it’s possible the borrowers are lying about their income and job status. (But who cares?)

Today, even considering such a package seems ridiculous. Yet most of these loans, part of a fund sold by a major investment bank in 2006, received top-grade scores from rating agencies and enthusiasm from investors. Perhaps not surprisingly, several of the fund’s tranches are already a complete bust, and the rest are in shambles.

Perhaps the most outrageous aspect of this story is that its ending could have been predicted. Those bundles smelled toxic even in the midst of the bubble — for anybody who bothered to take a sniff. When common sense fails in so spectacular a fashion, it’s not just a gap in basic risk-assessment procedures. It’s a symptom of a systematic and cultural collapse.

How, then, can a financial-services firm, or any other company, adopt a more effective risk management system? The most serious gaps are related not to technology and models — that is, not to the risk management tools used to monitor investments and model equity strategies — but to people’s roles and the firm’s decision-making processes. In a number of institutions in the pre-crisis environment, the strong drive for profit led to veiled but intense pressures on risk departments to approve increasingly dangerous transactions. In turn, these assaults on caution weakened the risk management discipline throughout the company.

The banks that weathered the credit crisis relatively well were generally those whose risk management culture had remained strong. They had sharp and effective lines of defense against taking unnecessary chances, and they demonstrated a commitment to supporting capable individuals who exhibited risk awareness and set an example for others to follow. These companies view risk management as a positive capability, something that should be visible everywhere from the front office to headquarters, rather than viewing it as an obstacle to profits.

Understanding, defining, and actively managing an organization’s risk appetite requires a core of executive directors on the board who possess solid business and risk expertise. This group must appreciate the risks being taken and understand the risk/return trade-offs inherent in the creation of new financial products. Moreover, the board must accept the implications of major decisions on risk. In the mid-2000s, for example, most investment bank boards did not discuss the consequences of acquiring so many questionable mortgage investments and other similar instruments, which led to a huge increase in absolute leverage, nor did they discuss the unintended consequences of some bankers’ seemingly unlimited earning power. Instead, as reported by the New York Times in November 2008, top executives at banks such as Merrill Lynch & Company were allowed to order corporate watchdogs — the more squeamish at these firms and on their boards — to heel.

No individual specialist in a certain asset class, product, or function, whatever it might be, can be solely responsible for identifying and mitigating all possible causes of unacceptable losses. Modern investment banking products involve multiple asset classes that are treated separately but are interdependent; a decline in one can worsen declines in others. This means that at a portfolio level, dangerous correlations can exist among the many positions held both within and outside the firm. The goal is to ensure that no one assumes that risk is not his or her responsibility. One idea is to consistently place risk management executives on the trading floor, where they can offer opinions and recommendations on portfolios and newly planned investments. But only companies in which the authority of these executives is unquestioned, particularly in the front office, would choose to take that step.

It is clear now that too many banks, during the years leading up to the credit crunch, employed a strategy combining a strong offense (aggressive investments) and a weak defense (little scrutiny). But a strong defense need not impede aggressive business growth. A robust risk management culture is marked by three characteristics:

Sustainable risk/return thinking. Top management and the front office itself must demonstrate clear thinking about risk/return trade-offs. Risk managers have two primary responsibilities: developing sustainable strategies and tactics to keep risk and return proportional, and providing top management with an independent control mechanism if front-office discipline fails.

To earn respect from the front office, risk managers must be of the highest caliber. They must be capable not just of challenging any negative swings in performance, but of helping executives understand the causes of peaks. Price limits for investment purchases or sales and other basic controls must be respected. Limit setting and limit monitoring must be accompanied by mechanisms with teeth; for example, risk managers must have the ability to fire regular violators of risk limits rather than just slapping their wrists. And traders must be forced to take holidays; rogue activities are much easier to check when the perpetrators aren’t on site to cover them up.

Usable, up-to-date information. Both the front office and top management must have reliable and consistent information on the positions and risks they are taking. Above all, risk managers must understand how the front office is or is not making money. Deconstructing the drivers of profit or loss needs to become the prevailing mentality. Discussions about new products, existing and new positions, and other issues must be broad and not restricted to methods for meeting quarterly targets or other short-term goals.

To go beyond the traditional role of “limit cop,” risk managers need to develop a deep understanding of whether the bank’s portfolio is overly concentrated in particular investments and whether the relationship between investments and their underlying value is transparent. In doing this, risk managers can determine what constitutes an early warning signal and what does not. If top risk management professionals do not have this authority and these tools, they will migrate elsewhere.

An in-depth oversight process. The auditing function often fails to provide independent and objective oversight. Instead, auditors see their assignment as a box-ticking exercise to ensure compliance, with limited critical review of potential weaknesses. That must change. A strong critical approach to each functional discipline must also be developed, involving far more insight and internal consultation beyond simply “checking the checkers.” After reviewing the securitization process, for instance, the internal audit team could identify and bring to the board’s attention potential flaws such as overreliance on rating agencies.

To accomplish this, auditors must possess not only extensive knowledge of the business — how the front office makes money — but also clear comprehension of the risk management discipline. In topnotch organizations, audit and finance teams blend strong process and IT know-how with an in-depth understanding of the business and risk. For example, audit teams investigate and validate mark-to-market positions, ensuring the integrity of information as it passes from one system to the next.

Audit findings then need to be acted upon. Audit items cannot be allowed to remain open quarter after quarter, with no consequences for the executive who fails to act on them. A more disciplined approach is required, with senior executives taking the leading role.

The ultimate goal is a culture that combines healthy risk taking with effective risk management. It takes a total, unmistakable, continual, and widely communicated commitment from the CEO to make this shift. Companies and banks that accomplish this will be much better equipped to weather the next set of economic storms.

Author Profiles:

Peter T. Golder is a principal with Booz & Company in London. He specializes in corporate strategy, restructuring, postmerger integration, and risk management for global banks and financial intermediaries.

Opinion: Innovation and the 20% solution

As IT budgets threaten to follow the same trend lines as financial markets, it's a natural impulse for managers to circle the wagons, concentrate on core projects and put off innovation for another day.

Natural, but wrong.

For proof, look at what happened after the Internet bubble burst earlier this decade. Sure, that tech bust pales in comparison with the current worldwide credit crunch in terms of overall effect, but if you consider the Internet sector alone, the money drought and corporate failures were pretty stunning.

So, how did Google emerge from that wreckage to become not another Pets.com, but a multibillion-dollar company and the world's most influential Web brand? A key part of the equation has been constant innovation (either in-house or by acquisition). It's not easy to innovate when money is drying up all around you. But Google managed to do just that during those lean years.

One important policy has increased both employee satisfaction and innovation at Google: the "20% rule," which allows engineers to spend one-fifth of their time on corporate projects of their choosing -- creating something new or making something work better -- even if the project isn't part of their job descriptions.

For one day each week, Google's engineering staffers get to work on projects they think are important for the business, not what management has prioritized for them.

Before you scoff at that as a tech-bubble luxury that only an overstaffed company can afford, look at some numbers. Google's AdSense for Content was developed as an engineer's "20% time" project. Last quarter, Google generated more than $1.6 billion in revenue from AdSense partner sites; that's almost one-third of the company's total revenue.

A few other companies have similar policies that have yielded noteworthy results. 3M's "bootlegging" rule allows research engineers to spend up to 15% of their time on projects of their choice. One well-known outgrowth: Post-it notes.

What the 20% rule has done at Google is turn a significant chunk of the company into something akin to a venture-capital innovation laboratory, but without outside funding to seed the work.

"There is a big difference between pet projects being permitted and being encouraged," Google software developer Joe Beda wrote several years ago on his blog. "At Google, it is actively encouraged for engineers to do a 20% project."

Beda outlined aspects of the environment that makes 20%-time success more likely, such as a single code base that makes it "really easy to look at and contribute to code in other projects without having to talk to anyone, get special permissions or fill out forms in triplicate," and a culture of transparency so teams share "the most intimate details of their project."

Only exceptional managers are going to buy into the idea that their most valuable assets -- their people -- will be available for company-directed work just 80% of the time. And there have been some rumblings on the Web that Google's 20% rule has come under pressure, especially if main projects are falling behind schedule.

It will be interesting to see whether Google's 20% rule can survive the current downturn. The company said earlier this month that it's shutting down a number of fledgling, experimental Web products and services.

Some of those decisions made a lot of sense, such as ending user uploads at Google Video (hardly needed, now that Google owns YouTube). Some other promising services that were shuttered -- such as a mashup editor that had been in "limited private beta" -- may have been victims of the down economy.

But great things can happen when tech workers in the trenches can spend time pursuing their own ideas. Even when budgets are tight.

Source

Communication (and Coordination?) in a Modern, Complex Organisation

Executive Summary:

Coordination, and the communication it implies, is central to the very existence of organizations. Despite their fundamental role in the purpose of organizations, scholars have little understanding of actual interaction patterns in modern, complex, multiunit firms. To open the proverbial "black box" and begin to reveal the internal wiring of the firm, this paper presents a detailed, descriptive analysis of the network of communications among members of a large, structurally, functionally, geographically, and strategically diverse firm. The full data set comprises more than 100 million electronic mail messages and over 60 million electronic calendar entries for a sample of more 30,000 employees over a three-month period in 2006. Key concepts include:

  • Communication is heavily constrained by formal organizational structure: the vast majority of communication occurs within business unit and functional boundaries, not across them. This points to the importance of drawing the right organizational boundaries.
  • Women, mid- to high-level executives, and members of the executive management, sales, and marketing functions are most likely to participate in cross-group communications.
  • These individuals provide a bridge for distant groups in a company's social structure.

    Abstract

    This is a descriptive study of the structure of communications in a modern organization. We analyze a dataset with millions of electronic mail messages, calendar meetings and teleconferences for many thousands of employees of a single, multidivisional firm during a three-month period in calendar 2006. The basic question we explore asks, what is the role of observable (to us) boundaries between individuals in structuring communications inside the firm? We measure three general types of boundaries: organizational boundaries (strategic business unit and function memberships), spatial boundaries (office locations and inter-office distances), and social categories (gender, tenure within the firm). In dyad-level models of the probability that pairs of individuals communicate, we find very large effects of formal organization structure and spatial collocation on the rate of communication. Homophily effects based on sociodemographic categories are much weaker. In individual-level regressions of engagement in category-spanning communication patterns, we find that women, mid- to high-level executives, and members of the executive management, sales and marketing functions are most likely to participate in cross-group communications. In effect, these individuals bridge the lacunae between distant groups in the company's social structure.

    Email Adam Kleinbaum and Toby Stuart.

    Paper Information

The Seven Things That Surprise New CEOs

Published: October 20, 2008
Author: Michael E. Porter, Jay W. Lorsch, Nitin Nohria
Editor's Note: By significantly expanding our understanding of the
dynamics of competition, Michael E. Porter's Harvard Business Review
article "How Competitive Forces Shape Strategy" launched a business
management revolution among academics and practitioners when it was
published in 1979. In the just released On Competition, Porter
collects his most influential articles from HBR, and adds new work on
health care, philanthropy, social responsibility, and leadership.

This excerpt, coauthored with Harvard Business School professors Jay
W. Lorsch and Nitin Nohria, looks at common surprises faced by new
CEOs.

See a video interview with Porter.

Most new chief executives are taken aback by the unexpected and
unfamiliar new roles, the time and information limitations, and the
altered professional relationships they run up against. Here are the
common surprises new CEOs face, and here's how to tell when
adjustments are necessary.

Surprise One: You Can't Run the Company

Warning signs:

You are in too many meetings and involved in too many tactical discussions.

There are too many days when you feel as though you have lost control
over your time.

Surprise Two: Giving Orders is Very Costly

Warning signs:

You have become the bottleneck.

Employees are overly inclined to consult you before they act.

People start using your name to endorse things, as in "Frank says…"

Surprise Three: It Is Hard To Know What Is Really Going On

Warning signs:

You keep hearing things that surprise you.

You learn about events after the fact.

You hear concerns and dissenting views through the grapevine rather
than directly.

Surprise Four: You Are Always Sending A Message

Warning signs:

Employees circulate stories about your behavior that magnify or distort reality.

People around you act in ways that indicate they're trying to
anticipate your likes and dislikes.

Surprise Five: You Are Not The Boss

Warning signs:

You don't know where you stand with board members.

Roles and responsibilities of the board members and of management are not clear.

The discussions in board meetings are limited mostly to reporting on
results and management's decisions.

Surprise Six: Pleasing Shareholders Is Not The Goal

Warning signs:

Executives and board members judge actions by their effect on stock price.

Analysts who don't understand the business push for decisions that
risk the health of the company.

Management incentives are disproportionately tied to stock price.

Surprise Seven: You Are Still Only Human

Warning signs:

You give interviews about you rather than about the company.

Your lifestyle is more lavish or privileged than that of other top
executives in the company.

You have few if any activities not connected to the company.
Implications for CEO Leadership

Taken together, the seven surprises carry some important and subtle
implications for how a new CEO should define his job.

First, the CEO must learn to manage organizational context rather than
focus on daily operations. Providing leadership in this way—and not
diving into the details—can be a jarring transition. One CEO said that
he initially felt like the company's "most useless executive," despite
the power inherent in the job. The CEO needs to learn how to act in
indirect ways—setting and communicating strategy, putting sound
processes in place, selecting and mentoring key people—to create the
conditions that will help others make the right choices. At the same
time, he must set the tone and define the organization's culture and
values through his words and actions—in other words, demonstrate how
employees should behave.

Second, he must recognize that his position does not confer the right
to lead, nor does it guarantee the organization's loyalty. He must
perpetually earn and maintain the moral mandate to lead. CEOs can
easily lose their legitimacy if their vision is unconvincing, if their
actions are inconsistent with the values they espouse, or if their
self-interest appears to trump the welfare of the organization. They
must realize that success ultimately depends on their ability to
enlist the voluntary commitment rather than the forced obedience of
others. While mastering the conventional tools of management may have
won the CEO his job, these tools alone will not keep him there.

Finally, the CEO must not get totally absorbed in the role. Even if
others think he is omnipotent, he is still only human. Failing to
recognize this will lead to arrogance, exhaustion, and a shortened
tenure. Only by maintaining a personal balance and staying grounded
can the CEO achieve the perspective required to make decisions in the
interest of the company and its long-term prosperity.

10 Reasons to Design a Better Corporate Culture

Q&A with: James Heskett and W. Earl Sasser
Published: December 22, 2008
Authors: James L. Heskett, W. Earl Sasser, and Joe Wheeler

Editor's Note: Why is it that many of the same companies appear
repeatedly on lists of the best places to work, the best providers of
customer service, and the most profitable in their industries? In
their new book, The Ownership Quotient, HBS professors Jim Heskett and
Earl Sasser and coauthor Joe Wheeler assert the answer lies in
recognizing that strong, adaptive cultures can foster innovation,
productivity, and a sense of ownership among employees and customers.
They also outlast any individual charismatic leader.

But how can you as a manager create and nurture that special culture?
In the following excerpt, the authors outline the top 10 lessons of
the best practitioners, from ING Direct to Build-A-Bear Workshop to
Harrah's Entertainment.

We can learn a great deal from organizations whose strong and adaptive
ownership cultures give them a powerful competitive edge. Here are our
top 10 lessons.

1. Leadership is critical in codifying and maintaining an
organizational purpose, values, and vision. Leaders must set the
example by living the elements of culture: values, behaviors,
measures, and actions. Values are meaningless without the other
elements.
2. Like anything worthwhile, culture is something in which you
invest. An organization's norms and values aren't formed through
speeches but through actions and team learning. Strong cultures have
teeth. They are much more than slogans and empty promises. Some
organizations choose to part ways with those who do not manage
according to the values and behaviors that other employees embrace.
Others accomplish the same objective more positively. At Baptist
Health Care, for example, managers constantly reinforce the culture by
recognizing those whose actions exemplify its values, its behaviors,
and its standards. Team successes are cause for frequent celebrations.
In addition, BHC rewards individual accomplishments through such
things as "WOW (Workers becoming Owners and Winners) Super Service
Certificates," appreciation cards for 90-day employees that list their
contributions to their team, one-year appreciation awards, multiyear
service awards, employee of the month awards, and recognition of
workers as "Champions" or "Legends" for extraordinary achievements or
service. Managers at all levels offer frequent informal recognition
and send handwritten thank-you notes (which stand out in the age of
e-mail). Those who aren't living up to BHC's values soon get the
point.
3. Employees at all levels in an organization notice and validate
the elements of culture. As owners, they judge every management
decision to hire, reward, promote, and fire colleagues. Their
reactions often come through in comments about subjects such as the
"fairness of my boss." The underlying theme in such conversations,
though, is the strength and appropriateness of the organization's
culture.
4. Organizations with clearly codified cultures enjoy labor cost
advantages for the following reasons:

-- They often become better places to work.
-- They become well known among prospective employees.
-- The level of ownership—referral rates and ideas for improving
the business of existing employees—is often high.
-- The screening process is simplified, because employees tend
to refer acquaintances who behave like them.
-- The pool of prospective employees grows.
-- The cost of selecting among many applicants is offset by cost
savings as prospective employees sort themselves into and out of
consideration for jobs.
-- This self-selection process reduces the number of mismatches
among new hires.
5. Organizations with clearly codified and enforced cultures enjoy
great employee and customer loyalty, in large part because they are
effective in either altering ineffective behaviors or disengaging from
values-challenged employees in a timely manner.
6. An operating strategy based on a strong, effective culture is
selective of prospective customers. It also requires the periodic
"firing" of customers, as pointed out in our examples of companies
like ING Direct, where thousands are fired every month. This strategy
is especially important when customers "abuse" employees or make
unreasonable demands on them.
7. The result of all this is "the best serving the best," or as
Ritz-Carlton's mission states, "Ladies and gentlemen serving ladies
and gentlemen."
8. This self-reinforcing source of operating leverage must be
managed carefully to make sure that it does not result in the
development of dogmatic cults with little capacity for change.
High-performing organizations periodically revisit and reaffirm their
core values and associated behaviors. Further, they often subscribe to
some kind of initiative that requires constant benchmarking and
searching for best practices both inside and outside the organization.
For example, at Baptist Health Care, all employees are expected and
encouraged "to search until they find 'the best of the best' in their
area of expertise and benchmark against them (and possibly emulate
them)." 1
9. Organizations with strong and adaptive cultures foster effective
succession in the leadership ranks. In large part, the culture both
prepares successors and eases the transition.
10. Cultures can sour. Among the reasons for this are success
itself, the loss of curiosity and interest in change, the triumph of
culture over performance, the failure of leaders to reinforce desired
behaviors, the breakdown of consistent communication, and leaders who
are overcome by their own sense of importance.

We have learned repeatedly that there is a pattern in the actions and
activities involved in developing strong and adaptive ownership
cultures. When an organization consistently builds and reinforces such
a culture, it creates a competitive edge that is hard to replicate.

Excerpted with the permission of Harvard Business Press from The
Ownership Quotient: Putting the Service Profit Chain to Work for
Unbeatable Competitive Advantage. Copyright 2008 Harvard Business
Publishing Corporation. All rights reserved.