The Culture Cycle: How to Shape the Unseen Force that Transforms Performance

The contribution of culture to organizational performance is substantial and quantifiable. In The Culture Cycle, renowned thought leader James L. Heskett demonstrates how an effective culture can account for 20-30% of the differential in performance compared with "culturally unremarkable" competitors. Drawing on decades of field research and dozens of case studies, Heskett introduces a powerful conceptual framework for managing culture, and shows it at work in a real-world setting. Heskett's "culture cycle" identifies cause-and-effect relationships that are crucial to shaping effective cultures, and demonstrates how to calculate culture's economic value through "Four Rs": referrals, retention, returns to labor, and relationships. The Culture Cycle explains how cultures evolve, can be deliberately shaped and sustained, and serve as a powerful "internal brand" that can promote innovation and organizational resilience. Heskett guides leaders in linking culture to strategy; managing the forces of change that can deeply challenge culture; adapting corporate culture to local businesses within global enterprises; and credibly quantifying culture's impact on performance, productivity, and profits. He also presents a full chapter on the unique role of culture in mission-driven organizations. A follow-up to the classic Corporate Culture and Performance (authored by Heskett and John Kotter), this is the next indispensable book on organizational culture.