Aligning culture with the bottom line
Our second survey of CEOs around the world underscores the deep links leaders see between culture and financial performance.
is a partner in Heidrick & Struggles’ Costa Mesa office and the global lead of the Organization Acceleration and Culture Shaping Center of Excellence.
Rose Gailey
rgailey@heidrick.com
About the authors
is a partner in Heidrick & Struggles’ London office and a member of Heidrick
Consulting’s global leadership team.
Ian Johnston
ijohnston@heidrick.com
is a partner in Heidrick & Struggles'
New York office and a member of the Culture Shaping Practice.
Holly McLeod
hmcleod@heidrick.com
Take our quiz
Explore the data
01
03
02
04
05
06
07
Survey findings:
01
02
03
04
05
06
07
Culture and financial performance:
01
08
06
05
04
02
03
Market
Sector
Comparison by:
08
08
Culture
and financial
performance
07
Culture
and
retention
Culture
and
strategy
Working
on
culture
How much
culture
helps
Goals
for
culture
Important
elements
of culture
Reasons
culture drives performance
Culture
and
retention
Culture
and financial
performance
Culture
and
strategy
Working
on
culture
How much
culture
helps
Goals
for
culture
Important
elements
of culture
Reasons
culture drives performance
Download our 2023 infographic on financial performance
Technology
or
telecoms
5
4
3
2
1
Industrials
or
Energy
5
4
3
2
1
Healthcare
or
pharmaceuticals
5
4
3
2
1
Financial
Services
5
4
3
2
1
Consumer Goods, hospitality,
leisure, retail
5
4
3
2
1
Technology
or
telecoms
5
4
3
2
1
Industrials
or
Energy
5
4
3
2
1
Healthcare
or
pharmaceuticals
5
4
3
2
1
Financial
Services
5
4
3
2
1
Consumer Goods, hospitality,
leisure, retail
5
4
3
2
1
Market
Sector
Comparison by:
Technology
or
telecoms
Industrials
or
Energy
Healthcare
or
pharmaceuticals
Financial
Services
Consumer Goods, hospitality,
leisure, retail
Technology
or
telecoms
Industrials
or
Energy
Healthcare
or
pharmaceuticals
Financial
Services
Consumer Goods, hospitality,
leisure, retail
Technology
or
telecoms
Industrials
or
Energy
Healthcare
or
pharmaceuticals
Financial
Services
Consumer Goods, hospitality,
leisure, retail
Sector
Market
Comparison by:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Policy and process
Leadership
Operating model
Talent
Strategy
Culture
Opportunity
for promotion
The quality of our
leaders at all levels
Being identified
as high potential
Flexibility in work rules/locations
Compensation
and benefits
Our culture
Download the 2023 infographic
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Reasons
culture drives performance
08
Reasons
culture drives performance
08
Important
elements
of culture
07
Important
elements
of culture
07
Goals
for
culture
06
Goals
for
culture
06
How much
culture
helps
05
How much
culture
helps
05
Working
on
culture
04
Working
on
culture
04
Culture
and
strategy
03
Culture
and
strategy
03
Culture
and
retention
02
Culture
and
retention
02
Culture
and financial
performance
01
Culture
and financial
performance
01
Survey findings:
Market
Sector
Comparison by:
Sector
Market
Comparison by:
Sector
Market
Comparison by:
Sector
Market
Comparison by:
Sector
Market
Comparison by:
Sector
Market
Comparison by:
Sector
Market
Comparison by:
Market
Sector
Comparison by:
Market
Sector
Comparison by:
Market
Sector
Comparison by:
Market
Sector
Comparison by:
Market
Sector
Comparison by:
Market
Sector
Comparison by:
Opportunity
for promotion
The quality of our
leaders at all levels
Being identified
as high potential
Flexibility in work rules/locations
Compensation
and benefits
Our culture
Policy and process
Leadership
Operating model
Talent
Strategy
Culture
Download our 2021 report
Rank of top five factors with a positive influence on financial performance
Culture and retention:
Rank of top five elements that positively impact retention rates
Culture and strategy:
Percentage saying a link is very important or crucial to positive financial performance
Percentage doing work now or not
Working on culture:
Percentage saying culture improved or significantly improved each type of performance
How much culture helps:
Rank of top five reasons to work on culture
Goals for culture:
Rank of top five elements of culture most important to positive financial performance
Important elements of culture:
Rank of top five reasons a thriving culture drives performance
Reasons culture drives performance:
Culture and financial performance:
Rank of top five factors with a positive influence on financial performance
01
Culture and retention:
Rank of top five elements that positively impact retention rates
02
Percentage saying a link is very important or crucial to positive financial performance
Culture and strategy:
03
Percentage doing work now or not
Working on culture:
04
Percentage saying culture improved or significantly improved each type of performance
How much culture helps:
05
Rank of top five reasons to work on culture
Goals for culture:
06
Rank of top five elements of culture most important to positive financial performance
Important elements of culture:
07
Rank of top five reasons a thriving culture drives performance
Reasons culture drives performance:
08
5
4
3
2
1
United
Kingdom
5
4
3
2
1
United
States
5
4
3
2
1
SPain
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Hong Kong
5
4
3
2
1
Global
Average
Singapore
Retention rates
Financial performance
DE&I performance
Creating stronger alignment with strategy
Managing new ways
of working
Addressing ethics or compliance issues
Creating stronger alignment with organizational purpose
Improving diversity
and inclusion
Increasing innovation
Increasing employee engagement
Customer and quality focus
Appreciation and recognition
Alignment with organizational purpose
Collaboration and trust
Positive spirit and vitality
Agility, innovation, and growth mindset
Direction and purpose
Encouraging people to put in effort beyond what is normally expected
Creating a competitive advantage through a differentiated reputation
Enabling an enhanced customer experience
Driving innovation
Driving alignment for effective decision making
Improving our ability
to attract and retain
the best people
Making collaboration
more effective
No, becuase we had
done so previously
No
Yes
Retention rates
Financial performance
DE&I performance
Technology
or
telecoms
5
4
3
2
1
Industrials
or
Energy
5
4
3
2
1
Healthcare
or
pharmaceuticals
5
4
3
2
1
Financial
Services
5
4
3
2
1
Consumer Goods, hospitality,
leisure, retail
5
4
3
2
1
Managing new ways
of working
Addressing ethics or compliance issues
Creating stronger alignment with organizational purpose
Improving diversity
and inclusion
Increasing innovation
Increasing employee engagement
Technology
or
telecoms
5
4
3
2
1
Industrials
or
Energy
5
4
3
2
1
Healthcare
or
pharmaceuticals
5
4
3
2
1
Financial
Services
5
4
3
2
1
Consumer Goods, hospitality,
leisure, retail
5
4
3
2
1
Alignment with organizational purpose
Collaboration and trust
Positive spirit and vitality
Agility, innovation, and growth mindset
Direction and purpose
Technology
or
telecoms
5
4
3
2
1
Industrials
or
Energy
5
4
3
2
1
Healthcare
or
pharmaceuticals
5
4
3
2
1
Financial
Services
5
4
3
2
1
Consumer Goods, hospitality,
leisure, retail
5
4
3
2
1
Enabling an enhanced customer experience
Driving innovation
Driving alignment for effective decision making
Improving our ability
to attract and retain
the best people
Making collaboration
more effective
Global
Average
5
4
3
2
1
United
Kingdom
5
4
3
2
1
United
States
5
4
3
2
1
SPain
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Hong Kong
and singapore
5
4
3
2
1
Global
Average
5
4
3
2
1
United
States
5
4
3
2
1
United
Kingdom
5
4
3
2
1
SPain
5
4
3
2
1
Hong Kong
and singapore
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Global
Average
United
States
United
Kingdom
SPain
Hong Kong
and singapore
Germany
France
Canada
Brazil
Australia
Global
Average
United
States
United
Kingdom
SPain
Hong Kong
and singapore
Germany
France
Canada
Brazil
Australia
United
States
United
Kingdom
SPain
Hong Kong
and singapore
Germany
France
Canada
Brazil
Australia
Global
Average
5
4
3
2
1
United
States
5
4
3
2
1
United
Kingdom
5
4
3
2
1
SPain
5
4
3
2
1
Hong Kong
and singapore
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Global
Average
5
4
3
2
1
United
States
5
4
3
2
1
United
Kingdom
5
4
3
2
1
SPain
5
4
3
2
1
Hong Kong
and singapore
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Global
Average
5
4
3
2
1
United
States
5
4
3
2
1
United
Kingdom
5
4
3
2
1
SPain
5
4
3
2
1
Hong Kong
and singapore
5
4
3
2
1
Germany
5
4
3
2
1
France
5
4
3
2
1
Canada
5
4
3
2
1
Brazil
5
4
3
2
1
Australia
5
4
3
2
1
Global
Average
Download the 2023 infographic
About the research
In a survey conducted online in spring 2023, we surveyed 500 CEOs in Australia, Brazil, Canada, France, Germany, Hong Kong, Singapore, Spain, the United Kingdom, and the United States. They lead companies in consumer goods, financial services, industrials and energy, healthcare and pharmaceuticals, and technology and telecoms.
This year, we found that three times as many see culture as a key driver of financial performance than just two years ago; that to get there, they are focused on culture's impact on employee mindsets and behaviors as a critical driver of business outcomes; and that they are overwhelmingly seeing positive results.
Learn more and explore the findings below by market and sector.
Very important
or crucial
59%
54%
60%
80%
34%
46%
70%
54%
62%
63%
69%
53%
Across industry Average
53%
62%
57%
Very important
or crucial
88%
92%
98%
74%
78%
92%
78%
96%
98%
56%
75%
85%
65%
61%
90%
71%
82%
98%
73%
88%
94%
79%
94%
98%
77%
91%
96%
Across industry Average
Across industry Average
5
4
3
2
1
Across industry Average
5
4
3
2
1
Across industry Average
5
4
3
2
1
Across industry Average
5
4
3
2
1
Across industry Average
5
4
3
2
1
Across industry Average
92%
8%
90%
10%
94%
6%
82%
14%
4%
58%
40%
2%
86%
12%
2%
72%
24%
4%
88%
8%
4%
82%
16%
2%
87%
13%
90%
8%
3%
72%
24%
4%
77%
21%
2%
87%
12%
1%
No, because we had
done so previously
No
Yes
74%
85%
94%
73%
86%
96%
79%
87%
94%
72%
86%
96%
66%
77%
92%
80%
88%
95%
74%
85%
94%
59%
83%
15%
2%
83%
15%
2%
Contact us
Contact us