THE BENEFITS OF ADAPTABLE ORGANIZATIONS

Across industries and geographies, the most successful organizations exhibit cultural traits that distinguish them from their less profitable competitors. When pervasive across levels and functions, these characteristics position the organization to adapt swiftly to respond to customer needs, meet the demands of shifting markets and new competition, and commodify innovation to set the course for enduring success.

What Makes an Organization Adaptable?

These cultures are aware of dynamics inside and outside of their organization, with management that cares deeply about customers, stockholders, and employees. They see change as a constant, and they strongly value people and processes that can create useful change (e.g. leadership up and down the management hierarchy). Leadership pays close attention to all of their constituencies – especially their customers – and they initiate change when needed to serve their legitimate interests... even if that entails taking some risks.

The Return on Long-Term Capability Building

Kotter's research on the role that culture plays in business success shows a direct correlation between adaptable organizations and financial and strategic achievement. Companies that prioritize the development of employees' change capabilities see a measurable return on that investment both in employee behavior and in the bottom line.

Our research shows that adaptable organizations outperform those who are not adaptable by an average of 5x.

Not only do these companies get ahead – they stay ahead. Adaptable organizations have been outperforming consistently for three decades, and the trend shows no signs of stopping.