Organizational culture is a remarkable competitive advantage. McKinsey & Company, for example, has found that top quartile cultures outperform median cultures by 60% — and bottom quartile cultures by 200% — and that those company’s cultures are both difficult for competitors to replicate and allow the organization to better adapt to changing circumstances. These findings are echoed in the research of Alex Edmans of London Business School, who found similar outperformance among companies with exceptional cultures.
Leaders, Make Curiosity the Core of Your Organizational Culture
Keeping a competitive edge requires constant questioning.
November 17, 2023
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Summary.
Great corporate cultures are not just good for performance, but for the flourishing and engagement of the people who work in them and to deliver greater meaning and purpose. But oft overlooked is the central role that curiosity plays in crafting an organizational culture. To unlock the potential of their institutions and the people within them, great leaders need to demonstrate consistent curiosity in four key areas. First, they must be curious about the values and motivations of their employees in shaping and maintaining a corporate culture. Second, curiosity must be extended to customers to find out not just about your products and services but about “why” your customers love your organization. Third, leaders must reflect with open-mindedness and curiosity on their own roles, especially as they change. Finally, leaders must stay curious about the changing nature of their companies and contexts over time, and adjust their cultures accordingly.