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.
Our 95-5 Methodology keeps you tightly focused on the 5% of cultural factors that account most for operating success.
When To Use 95-5
The 95-5 Methodology has the muscle and flexibility needed whenever your organization is confronted by any of the key drivers of culture change:
Mergers and acquisitions
Large technology implementations
Major economic swings
As your organization deals with its various challenges, culture shouldn't be the problem. It should be a key part of the solution. The secret is in how you shape it.