Going far beyond previous empirical work, John Kotter and James
Heskett provide the first comprehensive critical analysis of how
the culture of a corporation powerfully influences its economic
performance, for better or for worse. Through painstaking research
at such firms as Hewlett-Packard, Xerox, ICI, Nissan, and First
Chicago, as well as a quantitative study of the relationship
between culture and performance in more than 200 companies, the
authors describe how shared values and unwritten rules can
profoundly enhance economic success or, conversely, lead to failure
to adapt to changing markets and environments.
With penetrating insight, Kotter and Heskett trace the roots of
both healthy and unhealthy cultures, demonstrating how easily the
latter emerge, especially in firms which have experienced much past
success. Challenging the widely held belief that strong corporate
cultures create excellent business performance, Kotter and Heskett
show that while many shared values and institutionalized practices
can promote good performances in some instances, those cultures can
also be characterized by arrogance, inward focus, and bureaucracy
-- features that undermine an organization's ability to adapt to
change. They also show that even contextually or strategically
appropriate cultures -- ones that fit a firm's strategy and
business context -- will not promote excellent performance over
long periods of time unless they facilitate the adoption of
strategies and practices that continuously respond to changing
markets and new competitive environments.
Fundamental to the process of reversing unhealthy cultures and
making them more adaptive, the authors assert, is effective
leadership. At the heart of this groundbreaking book, Kotter and
Heskett describe how executives in ten corporations established new
visions, aligned and motivated their managers to provide leadership
to serve their customers, employees, and stockholders, and thus
created more externally focused and responsive cultures.
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