95-5:

PRITCHETT has spent over a quarter of a century helping our clients wrestle with heavy-duty cultural challenges. In mergers big and small. In all kinds of culture change endeavors. We've developed a remarkably deep understanding of culture dynamics ... of what works, and what doesn't.

Culture is important because it carries heavy influence over operating results. But here's the key point: Very few culture traits are critical to success.

We call it the "Rule of 95-5." The idea is to focus your culture shaping efforts on the vital few and not get distracted by the trivial many.

Our experience shows that 95% of culture's mission-critical influence comes from a mere 5% of the total cultural attributes that exist in the organization. The vast majority of cultural factors —the 95% that remain —account for no more than 5% of culture's overall impact on your organization's success.

Ever wonder why so many hard-nosed executives dismiss culture as a lightweight business matter? It's because the vast majority of cultural issues are so inane. Think of them as cultural "noise." In the overall scheme of corporate performance, they just don't carry any significant weight.

Meanwhile, a small handful of culture characteristics wield make-or-break influence over the organization's future.