Financial results are a downstream outcome. The true upstream driver is a company's culture—its talent density, hiring practices, and incentive systems. A strong culture creates a reinforcing feedback loop that attracts talent, improves decisions, and fuels compounding for decades.

Identifying a company's stated values is insufficient. WCM's research evolved to analyze the social mechanisms that reinforce desired behaviors, turning values into a "cult." They found that many companies espouse the same behaviors, but only the best have the rituals and systems to make them stick.

Many companies focus only on growing revenue, which is an output. A high-performance culture focuses on the inputs: the personal and professional growth of its people. Investing in employees' skills, confidence, and well-being is what ultimately drives sustainable financial success, not the other way around.

Hiring for "cultural fit" can lead to homogenous teams and groupthink. Instead, leaders should seek a "cultural complement"—candidates who align with core values but bring different perspectives and experiences, creating a richer and more innovative team alchemy.

Company-wide processes like annual planning often become bland and unopinionated to appease all stakeholders and avoid criticism. In contrast, companies with strong cultures often have opinionated leaders who champion specific, quirky rituals, which infuses the entire organization with a distinct and effective character.

Culture isn't created by top-down declarations. It emerges from the informal stories employees share with each other before meetings or at lunch. These narratives establish community norms and create "shared wisdom" that dictates behavior far more effectively than any official communication from leadership.

Instead of vague values, define culture as a concrete set of "if-then" statements that govern reinforcement (e.g., "IF you are on time, THEN you are respected"). This turns an abstract concept into an operational system that can be explicitly taught, managed, and improved across the organization.

Culture isn't about values listed on a wall; it's the sum of daily, observable behaviors. To build a strong culture, leaders must define and enforce specific actions that embody the desired virtues, especially under stress. Abstract ideals are useless without concrete, enforced behaviors.

A powerful way to gauge cultural fit is to identify who is succeeding within the organization. Then, honestly assess if you respect them and their methods. If the path to "thriving" is paved by behaviors you don't admire, it signals a fundamental misalignment and may not be a game you want to win.