Here are some key facts about leadership and stakeholder value:
- Leadership development drives cultural capital
- Cultural capital drives employee fulfilment
- Employee fulfilment drives client satisfaction
- Client satisfaction drives stakeholder value
We are moving from the information age, where knowledge capital was our key concern, to the Age of Consciousness, where cultural capital is driving transformation.
Developing cultural capital in the Age of Consciousness means making an investment in how people work together and the “personality” or brand of the company. Financial capital is dependent on cultural capital, which is dependent on human capital. Values drive cultural capital and inspire human capital. This means it is necessary to measure and manage the values of an organization and its leaders to ensure the health, performance, and capacity to remain competitive.
For companies to achieve sustainable excellence they must be healthy. This means they must manage both their performance and health. In a 2010 survey, companies undergoing transformation revealed that organizations focused on performance and health simultaneously were nearly twice as successful as those who focus on health alone, and nearly three times as successful as those who focus on performance alone.
The center of attention the last four decades on business renewal has been on performance improvement. Now, with the emergence of consciousness, leaders recognize they need to spend more time on improving the culture and the health of the organization because this is where the need is.
Financial capital is easier to measure and manage as a corporate resource than cultural capital. This is because organizations have spent the last century developing accounting systems to track finances. Cultural capital is more challenging because values and behaviors are intangible. However intangible it may be, it is still a very important corporate resource that needs measurement and management. What you measure you can manage and improve. Much like the organization’s finances which are measured weekly and monthly, so too do the organization’s culture, values, and behaviors need to be monitored regularly by managers and leaders.
Worksheet – Creating Cultural Capital
Purpose: To raise awareness for the value of the cultural capital and how it is created
Be sure to visit our Resource Center for valuable leadership development resources
To find out what your personal values are that empower you to higher performance and productivity, take a Free Personal Values Assessment.
To learn how well aligned you are with the culture in your organization contact us for an – Individual Values Assessment
To learn how to map, measure and manage the culture of your team or organization with our Culture Value Assessment for Teams and Organizations.
With 30 years in business transformation working with organizations, Joanna’s passion lies in working with leaders, facilitating active participation in organizational change, developing resourceful teams and aligning strategic objectives. Her goal is to help organizations become high performing and values-driven, where people take ownership, build commitment and bridge communication gaps. As CEO of the Culture Leadership Group, she ensures successful transformation from concept through to implementation.