Auctus Search Partners, LLC: Why Values Based Organizational Development?

Wednesday, December 5, 2012

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.

Dan Pink notes in his video that the Federal Reserve’s research shows that money incentives were less effective than purpose in high cognitive functions. http://www.youtube.com/watch?feature=player_embedded&v=u6XAPnuFjJc#!

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.