Most studies of corporate exceptionalism or "greatness" start with financial
performance and work backwards. In their latest book entitled
Firms Of Endearment, LeadFirst Academy faculty members and authors David Wolfe and Dr. Rajendra Sasodia started
with human performance and worked forward.
The authors researched hundreds of companies that people love -- not just like,
but love. They put them through a stringent set of screening criteria to arrive
at a final set of twenty Firms of Endearment (FoEs). These FoEs are truly loved
by all who come in contact with them -- customers, employees, suppliers,
environmentalists, the community, even governments!
Firms of Endearment Stock Performance,
click to enlarge. These companies pay their employees very well, provide great value to customers, and have thriving, profitable suppliers. They are also wonderful for investors, returning 758% over the past ten years, compared to only 128% for the S&P 500 and 320% for the Good to Great companies.
The world is changing dramatically, imposing new requirements for success. To
thrive in the future, companies will have to embrace the social transformation
of capitalism. This inspirational and practical book will show the way.
Organizational Culture = The Secret Ingredient of FoEs
The author's in-depth research reveals that the FoE's mightiest competitive
difference is their corporate culture. Without disputing the need to balance
the stakeholder interest of the big-5 constituencies (shareholders, customers,
employees, suppliers and communities), what matters most to FoEs is their
corporate culture. This sets them apart from the crowd and enables
them to consistently and ceaselessly create value for all of their stakeholder
groups.
LeadFirst has measured and modeled FoE cultures using its Organizational Culture MRI Tools. The Culture MRI maps the FoE culture on twelve types of
behavioral norms that characterize the operating culture of an organization. The
Organizational MRI can be used to compare and contrast any corporate culture to the FoE culture.
The gap pinpoints improvement opportunities that, when acted upon, will promote an
FoE culture and the sustained performance results such a culture makes possible.
