Wednesday, December 5, 2012

Why Values Based Organizational Development?

  •  Kouzes and Posner’s book, The Leadership Challenge  notes that: Organizations with a foundation based on purposeful values-

• grew revenues more than 4 times faster than those without
values and purpose.
• created jobs seven times faster than their competition.
• grew their stock price 12 times faster than those without values
and purpose.
• created 750% higher profit growth than those companies without
values and purpose. 

  • In Built to Last, James Collins and Jerry Porras reveal that purpose- and values-driven organizations outperformed the general market and comparison companies by 15:1 and 6:1, respectively. 

  •  In Corporate Culture and Performance, Harvard professors John Kotter and James Heskett found that firms with shared values–based cultures enjoyed 400% higher revenues, 700%greater job growth, 1,200% higher stock prices and significantly faster profit performance as compared to companies in similar industries.

  • In Firms of Endearment, marketing professor Rajendra Sisodiaand his coauthors explain how companies that put employees’ and customers’ needs ahead of shareholders’ desires outperform conventional competitors in stock-market performance by 8:1. 

  • Leaders who have a clearly articulated purpose and are driven to make a difference can inspire people to overcome insurmountable odds writes Roy M. Spence Jr. in It’s Not What You Sell, It’s What You Stand for.

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