Financial Returns From Organizational Culture Improvement: Translating “Soft” Changes into “Hard” Dollars

Culture change initiatives can lead to real financial returns. This presentation summarizes the results of a series of studies that demonstrate the strong relationship between constructive organizational cultures and financial performance. First we review cross-sectional studies confirming that constructive cultures are related to financial outcomes across organizations within the same industry. Then the results of longitudinal case studies show how organizational development programs have produced measurable cultural changes that, in turn, have led to improvements in bottom-line financial performance.

This paper was presented at the ASTD Expo in Orlando, Florida, on June 6, 2005.

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