No.35   November 1, 2001   Success to Corporate Genome -- Innovating Corporate Culture Around Trust and Creativity --   Hiroaki NAGURA and Hirofumi HONDA         Corporate culture is the unique atmosphere or flavor radiated by a company as a whole. It also concerns other aspects such as the company's values and the norms of its behavior, which is difficult to grasp in the abstract. However, this elusive element of corporate culture is an important factor that can help or hinder a company as it innovates, and can be the foundation for its vitality and creativity. The essence for success and survival in the 21st century requires that companies quickly focus on their approach in innovating their corporate culture and start managing the mental side of the company, which revolves around trust and creation.     While it is difficult to explain corporate culture comprehensively, we formulated two axes based on an opinion and behavior database we have accumulated from surveys conducted over the past decade on some 50,000 employees of 120 Japanese companies, and which show a strong correlation between business performance and business growth. We have labeled this correlation the "corporate genome." The findings of a subsequent corporate genome analysis that NRI conducted this June involving about 50 companies found no fault lines between the upper and lower strata in vitalized companies, and revealed that employees could choose their own challenges and work strategically. Such employees act with a combination of logic and passion, valuing principles and dreams for the future, in a corporate culture that includes effective internal communication and which respects debate and stimulates challenges. Contents I The Significance of Corporate Culture in the Process of Company Innovation 1 What is Lacking in Corporate Innovation in Japan? 2 Corporate Culture Influences the Success or Failure of Corporate Innovations 3 What is Corporate Culture? 4 Can Corporate Culture be Changed? II Innovation in Corporate Culture Begins by Taking an Objective Look at the Culture III Characteristics of Corporate Cultures Seen in the Latest Corporate Genome Analysis Results 1 General Trends in Corporate Cultures 2 The Characteristics of Vital Companies IV Transformation into a Vital Company 1 A Framework for Corporate Culture Innovation 2 Trust and Creation Management GO to PDF