Research Update: May 15, 2000

Where's the beef to prove that core values make a difference?

We often read or hear about how important core values or beliefs are in building and sustaining a high performing organization culture. But is there any solid empirical type of evidence that can be used to help convince the skeptics and the people who want to see a possible correlation between core values and long-term organizational profit and growth?

The answer is yes!

One of the best sources of data that deals with this question comes from the best selling book, Built to Last, by Collins and Porras, Published by Harper Business. Written in 1994, the authors did a marvelous job of comparing outstanding companies with moderately successful companies in related industries. They identified and used key categories of organizational effectiveness to compare what practices the outstanding and moderately successful companies did within these particular categories.

There are some compelling tables presented in appendix 3, Table A 4 of this book that should not be overlooked. Table A 4 provides a summary of the empirical determinations by the authors along each of the following dimensions:

1. Statements of ideology (core values and/or purpose)
2. Historical continuity of these statements
3. Ideology beyond profits
4. Consistency between ideology and actions

The table clearly displays how much more the truly outstanding companies practice some of these dimensions.