Sunday, February 23, 2014

Evidence that Organizational Development Principles Drive Quantitative Performance

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.

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,

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

In Firms of Endearment, marketing professor Rajendra Sisodia
and 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.


  1. A simple yet remarkable truth that drives not only the organization but the individual as well. Purpose and values are the glue that hold generations together. Outstanding!