Creative cultures create more value

Through our work with boards, executives and investors we have witnessed the necessity for a fundamental change in corporate culture*. Future business success requires a deliberate and prompt shift from Reactive Culture to Creative Culture.

Does your company have a reactive culture or a creative culture?

REACTIVE CULTURE CREATIVE CULTUREInsufficient trust to attack unknowns High trust, low fearInflexible decision making to market inputs

Flexible, adaptable thinking

Difficulty communicating across organizational boundaries

Strategic, cross functional collaboration

Listening to short term customer desires

Listening to new, more aggressive competitors

Slow to change and adapt Change management excellenceProfit goals outweigh investment goals Investments in the futureRisk management is a priority Risk is to be rewardedDefend the historical norms Diversify and realign our culture toward the

futureFocus on our “core” competency Continually evolve with market needsInternal issues dominate External focusOver-reliance on numbers Curiosity/openness to experimentationFocus on executing historical business model

Allocate adequate resources to new markets and new customers

Leader as “chief decider” Authentic leadership“This is the way we’ve always done it!”

“How can we do it better and differently?”

Financials take priority in decision making

Making a difference in the world

Copyright Integral Advisors, LLC 2011

Consider the recent value differential between companies with reactive cultures vs. creative cultures; Apple vs. Microsoft, Ford vs. GM, Zappos vs. Famous Footwear, Netflix vs. Blockbuster, Google vs.AOL. All outperformed their competitors in TSR in the past five years.

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Ask yourself – “Have we become unwittingly tolerant of a reactive corporate culture that is likely undermining our success?”

Shifting from a reactive to a creative culture

Many business leaders (unintentionally) operate with cultures that undermine strategy implementation, growth and thwart perpetual reinvention. Shifting from a reactive to a creative culture requires a skillfully choreographed sequence of integrated organizational changes. It demands the commitment of the board, ownership from the CEO and buy-in from the executive team.

We can help your firm identify and implement the changes required to shift from a reactive to a creative culture. We would be happy to discuss the importance of adding these attributes to your organization and sharing our approach in greater detail.

Contact: Bruce Sherman (847) 800-7797

Bruce@IntegralAdvisorsLLC.com www.IntegralAdvisorsLLC.com

Integral Advisors, LLC helps board of directors and business leaders identify and develop the individual, cultural and organizational capabilities needed to change and prosper. *Integral Advisors LLC 2010 research on top concerns of investors, analysts and rating agencies of succession risk.

Succession Planning • Executive Alignment • Coaching