17 January 2008
WestJet tops Canada's 10 Most Admired Corporate Cultures
Study also shows 93% of senior execs see correlation between corporate culture and performance.
Leadership search firm, Waterstone Human Capital yesterday released Canada's 10 Most Admired Corporate Cultures as part of its 2007 Corporate Culture Study.
The study also found Canadian senior executives increasingly aware of the key role corporate culture plays in business performance.
Airline remains #1
WestJet Airlines has held the pole position on Canada's 10 Most Admired Corporate Cultures for the past 3 years, since the inception of the awards, testament to the company's singular focus on culture.
(Hear about WestJet Airlines' winning approach to engagement on a Hub audio guide.)
This year's list also includes 4 new top performers: Boston Pizza, Maple Leaf Foods, Purolator Courier, and TD Bank Financial Group.
Influencing employees "Progressive Canadian companies have connected the dots between corporate culture and business performance," comments Marty Parker, managing director, Waterstone Human Capital.
"Corporate culture drives employee values. Employee values drive behavior. And behavior is critical to delivering on business plans and reaching goals. These 10 companies are recognized by other Canadian business executives for their mastery of this dynamic."
Five criteria for success
As part of the process to determine the winners, Waterstone Human Capital completed one-to-one interviews with 185 senior executives from across Canada's largest 1,000 companies.
The 5 criteria the award is based on are:
- vision and leadership;
- cultural alignment, measurement and sustainability;
- rewards, recognition and innovative business achievement;
- corporate performance; and
- corporate social responsibility.
Analysis needs attention
"While Canadian executives have evolved to understand the important role of culture as a potential competitive advantage, many still don't know how to foster or manage culture," says Parker.
"For example, 93% of the senior executives we interviewed saw the correlation between their corporate culture and corporate performance; that's leapt up from just 14% in 2005. Yet, only 43% even attempt to measure corporate culture. That's just the first step to mastering your culture."
Seeking a cultural fit
With 40% of the North American workforce reaching retirement age
by 2010, Canadian businesses are on a desperate search for the next generation
of corporate leaders.
According to Waterstone's research, companies are focusing their recruitment strategies on candidates with a cultural fit for their companies rather than specific skills.
While Canadian execs understand the role of culture as a potential competitive advantage, many still don't know how to foster or manage culture.
Other results:
- 86% of the research participants said that cultural fit was more important than skills when assessing executive-level candidates.
- 10% said skills came first
- 5% said both were equally important.
Leadership development worries
"Due to Baby Boom demographics, a
big generation of business executives is getting ready to hand off the baton.
They need new leaders who can mesh with and enhance their current corporate
cultures," says Parker.
Fit with culture is important because of the tangible impact on the
success of organizations. The vast majority of Canadian executives said that
corporate culture impacts corporate performance and 80% said it
impacts the ability to retain top talent.
But only half said that they had a process to integrate new leaders into their corporate culture.
Future focus
"Canadian businesses can see the need to manage culture but they're just
starting to figure out how to do it. This will be a predominant business
priority for the rest of this decade," concludes Parker.
Have your say
Is your company or your department focusing its recruitment strategies on candidates with a cultural fit for
the firm companies rather than specific skills? Do you think this is a wise or valuable strategy? Air your views and discuss these issues with your communication peers on the Internal Comms Hub members' group on the Communicators' Network.
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