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

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The contribution of culture to organizational performance is substantial and quantifiable. In The Culture Cycle, James L. Heskett demonstrates how an effective culture can account for up to half of the differential in performance between organizations in the same business. A follow-up to the classic Corporate Culture and Performance (coauthored with John Kotter), this book explains how culture evolves, can be shaped and sustained, fosters innovation, can promote survival in tough times, influences the success of global strategies, and is maintained in both for-profit and not-for-profit mission-driven organizations.Drawing on decades of field research and dozens of case studies, Heskett introduces a powerful conceptual framework for managing culture change and shows it at work in a real-world setting. Hesketts culture cycle identifies policies, practices, measures, and behaviors that are crucial to moving cultures forward and demonstrates how to calculate the economic value of culture through the Four Rs of referrals, retention, returns to labor, and relationships with customers.Hesketts insights will be invaluable to leaders, human resources professionals, consultants, those with responsibilities for productivity improvement, training, and operations--and for anyone seeking to understand important drivers of organizational performance.

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Praise for The Culture Cycle

Reading Jim Hesketts book is not some vague exercise in academic idealism. It is a well-written, practical, compelling manual of how to build an enterprise that will endure for 100 years or more. You cannot afford to ignore it.

John C. Bogle, Founder, The Vanguard Group; and author, Enough: True Measures of Money, Business, and Life

Jim Heskett has delivered yet another breakthrough in our understanding of how corporate cultures shape performance. If leaders take Hesketts sound advice to heart, corporate performance will improve and trust in business can be restored.

Bill George, Professor of Management Practice, Harvard Business School; former Chair and CEO, Medtronic; and author, Authentic Leadership

For those who might regard culture as an abstract, soft, perhaps hippie like concept, Jim Heskett brings home its manifest value to both the organization and the sensibilities of its people.

Herb Kelleher, Executive Chairman and CEO Emeritus, Southwest Airlines Co.

The Culture Cycle inspires leaders to start with people and shape their organizations cultures to drive engagement, inclusion, trust, innovation, and results. Jim Heskett has developed a new and valuable way to think about culture. This is a must read.

Jane Ramsey, Executive Vice President, Human Resources, Limited Brands, Inc.

Forget the squishy fluff; this book is hardcore, rooted in the numbers that drive margin. It shows the calculations...reveals the numbers for the report card that predicts the future success of your company, division, or department...numbers every leader should know... and few do.

Scott Cook, Co-Founder and Chairman of the Executive Committee, Intuit

Jim Hesketts is the essential handbook for todays organizations that care about their people and are determined that theirs is an organization of the future.

Frances Hesselbein, President and CEO, Leader to Leader Institute (formerly the Peter F. Drucker Foundation for Nonprofit Management)

In his extraordinary book, Jim Heskett has nailed it. He explains the essential value and nature of organizational culture. In the vast world of management how to books, this one needs to move to the top of any leaders list.

William J. Bratton, Chairman, Kroll; and former Police Commissioner of Boston, New York, and Los Angeles

Jim Heskett blends learnings from his stellar academic career with new research in this wise, beautifully written book about the most important determinant of organizational successculture.

Leonard Berry, Distinguished Professor, Marketing, Texas A&M University; and coauthor, Management Lessons from Mayo Clinic

Not only a call for action, this book provides a thoughtful perspective on how best to challenge the performance hurdles managers face in todays competitive marketplace. In a very compelling way, it makes the case for culture being a primary driver for success.

Arkadi Kuhlmann, CEO, ING Direct; and coauthor, The Orange Code

The Culture Cycle defines and highlights the attributes of culture through numerous examples. It identifies a series of metrics that are meaningful proxies for seeing the impact of culture in an organization (the Four Rs). It is an excellent read for leaders of organizations small or large, non-profit or for-profit.

John P. Morgridge, Chairman Emeritus, Cisco Systems

In Hesketts new book on understanding and enhancing the culture imperatives, he takes the reader step by step through complicated waters. This new piece of research and subsequent book will inspire even the most cynical managers to step up and concentrate even more to create cultures that support growth and development.

Thomas DeLong, Philip J. Stomberg Professor of Management Practice, Harvard Business School; and author, Flying Without a Net

Jim Heskett has put his finger on the pulse of what organizations can do to reverse a downward spin through his latest book. There is no spin cycle in The Culture Cycle...just wisdom that can transform our organizations.

Ginger Hardage, Senior Vice President Culture and Communications, Southwest Airlines Co.

The body of literature that purports to assist us in understanding and managing organization culture suffers from a lack of systematic data supporting either the frameworks or the corresponding action agenda. Jim Heskett has managed to crack the code on both fronts. This is an important book that deserves the careful attention of todays manager.

Leonard A. Schlesinger, President, Babson College; and coauthor, Action Trumps Everything

Jim Heskett has laid out a direction for successful organizations of the future...those that build an organizational culture founded on excellence, value their employees as assets, and see the world as their future market place.

William E. Strickland, Jr., CEO, Manchester Bidwell Corporation; and author, Make the Impossible Possible

The critical role of cultural durability has been evident in sharp relief during the cathartic period since late 2008 when many leaders have put their organizations through wrenching reforms to address declining demand and rapid globalization. Those companies that have enhanced their position have done so through the embodiment of Hesketts culture cycle.

Gary W. Loveman, Chairman of the Board, President and CEO, Caesars Entertainment

Jim Hesketts new book shows how culture affects the bottom line and is the most important task a leader faces.

Tom Watson, Cofounder, Omnicom Group; Vice Chairman Emeritus, Omnicom; and Dean, Omnicom University

Jim Heskett provides us an in-depth understanding of how cultures can be developed and strengthened with a poignant reminder that they also need to be nurtured and renewed if they are going to grow and continue to flourish. As you read this book, you will be learning from a master teacher with a wealth of experience.

C. William Pollard, former Chairman and CEO, The ServiceMaster Company; and author, The Soul of the Firm

The Culture Cycle

How to Shape the Unseen Force That Transforms Performance

James Heskett

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jeanne Glasser
Editorial Assistant: Pamela Boland
Development Editor: Russ Hall
Senior Marketing Manager: Julie Phifer
Assistant Marketing Manager: Megan Graue
Cover Designer: Chuti Prasertsith
Managing Editor: Kristy Hart
Project Editor: Anne Goebel
Copy Editor: Gayle Johnson
Proofreader: Editorial Advantage
Indexer: Erika Millen
Compositor: Nonie Ratcliff
Manufacturing Buyer: Dan Uhrig

2012 by James Heskett
Publishing as FT Press
Upper Saddle River, New Jersey 07458

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing August 2011
ISBN-10: 0-13-277978-1
ISBN-13: 978-0-13-277978-4

Pearson Education LTD.
Pearson Education Australia PTY, Limited.

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