INVISIBLE AND INDISPENSABLE
A recent survey of 1,400 U.S. and Canadian CEOs and CFOs reveals the importance of culture—and the challenge of building it.
50%
of executives said culture directly influences productivity, creativity, profitability, the value of a firm and growth rates.
92%
believe improving their firm's corporate culture would improve the value of the company.
78%
said culture is among the top five things that make their company valuable.
But
only
15%
said their company's culture is exactly where it needs to be.
READY FOR THE DIGITAL AGE
A global survey of nearly 1,000 executives reveals what kind of culture a digital strategy thrives within.
46%
of executives believe that in less than five years digital will have an impact on more than half their sales.
But only 21%
say they already have a culture in which their digital strategy will thrive.
What are the cultural characteristics of a corporation where digital strategy is set to thrive? According to the survey, an organization must:
1. Be an open, innovative and collaborative environment
2. Be risk-tolerant instead of risk-averse
3. Use customers to help reduce risk by involving them in the design stages of new products and experiences
4. Continuously consider customer feedback when making plans
THE CULTURE OF BRANDING
More and more, consumers are making buying decisions based on their perceptions of a company's culture. That has gotten the attention of senior marketing executives. They increasingly have to create a culture that positively reflects on their brand, according to a survey of 80 senior leaders.
believe a company's perceived culture affects consumer buying decisions.
60%of marketing leaders said they claim direct responsibility for corporate culture.
18%said culture is irrelevant to their brand.
believe their organization's culture supports their brand.
21%said culture undermines their brand.
DOING SOMETHING RIGHT
These are the 25 best multinational companies to work for in the world, according to Great Place to Work's annual rankings.
Rank |
Company |
Industry |
Country |
1. |
IT |
 USA |
|
2. |
SAS |
IT |
USA |
3. |
W.L. Gore & Associates |
Manufacturing & Production |
USA |
4. |
NetApp |
IT |
USA |
5. |
Telefónica |
Telecommunications |
 Spain |
6. |
EMC |
IT |
USA |
7. |
Microsoft |
IT |
USA |
8. |
BBVA |
Financial Services & Insurance |
Spain |
9. |
Monsanto |
Manufacturing & Production |
USA |
10. |
American Express |
Financial Services & Insurance |
USA |
11. |
Marriott International |
Hospitality |
USA |
12. |
Belcorp |
Retail |
 Peru |
13. |
Scotiabank |
Financial Services & Insurance |
 Canada |
14. |
Autodesk |
IT |
USA |
15. |
Cisco |
IT |
USA |
16. |
Atento |
Professional Services |
Spain |
17. |
Diageo |
Manufacturing & Production |
 United Kingdom |
18. |
AccorHotels |
Hospitality |
 France |
19. |
Hyatt Hotels |
Hospitality |
USA |
20. |
Mars |
Manufacturing & Production |
USA |
21. |
Cadence |
IT |
USA |
22. |
Hilti |
Manufacturing & Production |
 Liechtenstein |
23. |
EY |
Professional Services |
United Kingdom |
24. |
H&M |
Retail |
 Sweden |
25. |
Novo Nordisk |
Biotechnology & Pharmaceuticals |
 Denmark |
Note: To appear on the list of the World's Best Multinational Workplaces, a company must first appear on a Great Place to Work national Best Workplaces list, which are compiled using the results of the Trust Index Employee Survey and the Culture Audit Management Questionnaire. Two-thirds of a company's workplace culture assessment is based on employee comments and feedback, and the remaining third is based on the company's policies and practices, as measured in the culture audit.
A MISSTEP AT ZAPPOS?
Once celebrated as one of the best places to work, Zappos may now be experiencing some growing pains. In 2013, CEO Tony Hsieh announced the online shoe and clothing seller would build its corporate culture around the concept of holacracy: "a manager-free operating structure that is composed, in theory, of equally privileged employees working in task-specific circles, often overlapping," according to Business Insider.
But the shift has not gone so smoothly.
When Zappos announced the new holacracy structure, employees were given two options: embrace it, or leave with a generous severance package.
of employees
chose to leave.
30%
The company's 2015 attrition rate—10 percentage points higher than its typical annual turnover rate
For the first time in 8 years, in 2016 Zappos did not make Fortune's 100 Best Companies to Work For list.
FINDING THE BALANCE
According to a report by Kelly Services, 31 percent of employees worldwide are considered “free agents”: workers who choose flexible work styles over traditional employment arrangements. More than half of those free agents choose that path because of the freedom and flexibility it allows.
In order to keep top talent, organizations must make work-life balance a valued part of their culture. According to Kelly Services, the "most wanted" elements of work-life balance include:
54% Flexible schedules/hours and remote work options
44% Exposure to latest technologies and top-notch equipment
37% Virtual teams
37% Limitations or restrictions for working beyond designated business hours
32% Rapid pace with constant change; always something new
17% Restrictions for email communications during nights, weekends and vacations
Sources: Forrester Research Inc., The State of Digital Business, 2015 to 2020, 2015; Duke University's Fuqua School of Business; Egon Zehnder, The Intersection of Brand and Culture, 2015; Great Place to Work, World's Best Multinational Workplaces 2015; Kelly Services, Work Life Design: The New Balance; Fortune and The Atlantic.
INVISIBLE AND INDISPENSABLE
A recent survey of 1,400 U.S. and Canadian CEOs and CFOs reveals the importance of culture—and the challenge of building it.
50%
of executives said culture directly influences productivity, creativity, profitability, the value of a firm and growth rates.
92%
believe improving their firm's corporate culture would improve the value of the company.
78%
said culture is among the top five things that make their company valuable.
But only 15%
said their company's culture is exactly where it needs to be.
READY FOR THE DIGITAL AGE
A global survey of nearly 1,000 executives reveals what kind of culture a digital strategy thrives within.
46%
of executives believe that in less than five years digital will have an impact on more than half their sales.
But only 21%
say they already have a culture in which their digital strategy will thrive.
What are the cultural characteristics of a corporation where digital strategy is set to thrive? According to the survey, an organization must:
1. Be an open, innovative and collaborative environment
2. Be risk-tolerant instead of risk-averse
3. Use customers to help reduce risk by involving them in the design stages of new products and experiences
4. Continuously consider customer feedback when making plans
THE CULTURE OF BRANDING
More and more, consumers are making buying decisions based on their perceptions of a company's culture. That has gotten the attention of senior marketing executives. They increasingly have to create a culture that positively reflects on their brand, according to a survey of 80 senior leaders.
believe a company's perceived culture affects consumer buying decisions.
believe their organization's culture supports their brand.
of marketing leaders said they claim direct responsibility for corporate culture.
said culture undermines their brand.
said culture is irrelevant to their brand.
DOING SOMETHING RIGHT
These are the 25 best multinational companies to work for in the world, according to Great Place to Work's annual rankings.
Rank |
Company |
1. |
|
2. |
SAS |
3. |
W.L. Gore & Associates |
4. |
NetApp |
5. |
Telefónica |
6. |
EMC |
7. |
Microsoft |
8. |
BBVA |
9. |
Monsanto |
10. |
American Express |
11. |
Marriott International |
12. |
Belcorp |
13. |
Scotiabank |
14. |
Autodesk |
15. |
Cisco |
16. |
Atento |
17. |
Diageo |
18. |
AccorHotels |
19. |
Hyatt Hotels |
20. |
Mars |
21. |
Cadence |
22. |
Hilti |
23. |
EY |
24. |
H&M |
25. |
Novo Nordisk |
Note: To appear on the list of the World's Best Multinational Workplaces, a company must first appear on a Great Place to Work national Best Workplaces list, which are compiled using the results of the Trust Index Employee Survey and the Culture Audit Management Questionnaire. Two-thirds of a company's workplace culture assessment is based on employee comments and feedback, and the remaining third is based on the company's policies and practices, as measured in the culture audit.
A MISSTEP AT ZAPPOS?
Once celebrated as one of the best places to work, Zappos may now be experiencing some growing pains. In 2013, CEO Tony Hsieh announced the online shoe and clothing seller would build its corporate culture around the concept of holacracy: "a manager-free operating structure that is composed, in theory, of equally privileged employees working in task-specific circles, often overlapping," according to Business Insider.
But the shift has not gone so smoothly.
When Zappos announced the new holacracy structure, employees were given two options: embrace it, or leave with a generous severance package.
of employees
chose to leave.
30%
The company's 2015 attrition rate—10 percentage points higher than its typical annual turnover rate
For the first time in 8
years, in 2016 Zappos
did not make Fortune's
100 Best Companies to
Work For list.
FINDING THE BALANCE
According to a report by Kelly Services, 31 percent of employees worldwide are considered “free agents”: workers who choose flexible work styles over traditional employment arrangements. More than half of those free agents choose that path because of the freedom and flexibility it allows.
In order to keep top talent, organizations must make work-life balance a valued part of their culture. According to Kelly Services, the "most wanted" elements of work-life balance include:
54%
Flexible schedules/hours and remote work options
44%
Exposure to latest technologies and top-notch equipment
37%
Virtual teams
37%
Limitations or restrictions for working beyond designated business hours
32%
Rapid pace with constant change; always something new
17%
Restrictions for email communications during nights, weekends and vacations
Sources: Forrester Research Inc., The State of Digital Business, 2015 to 2020, 2015; Duke University's Fuqua School of Business; Egon Zehnder, The Intersection of Brand and Culture, 2015; Great Place to Work, World's Best Multinational Workplaces 2015; Kelly Services, Work Life Design: The New Balance; Fortune and The Atlantic.
