Most people are aware of the incredible power that company culture has in making or breaking a company.
While the concept of culture seems qualitative and fuzzy to many entrepreneurs or managers, the research on the impact of culture on organizations is very clear and data-driven. Companies with highly-engaged employees have low turnover, high productivity, more satisfied customers, and higher profits.
To sum it up culture’s potential impact more succinctly, management guru Peter Drucker famously put it a different way: “Culture eats strategy for breakfast.”
The Pitfalls of Culture Change
The benefits of a strong company culture are many – and it’s no surprise to see companies all over the world aspiring to build world-class cultures within their organizations at almost any cost.
The problem is that company culture, just like the culture that permeates through society, is based on hidden sets of assumptions, social norms, traditions, and unwritten rules that represent the way things actually get done in a company. As a result, decision makers often underestimate how challenging cultural change can be.
Today’s infographic comes from executive consultant Torben Rick, and it uses an iceberg analogy to show why organizational culture change sinks so many ships. At the top of the mass, there are visible indicators of a culture – but underneath is a bigger, invisible mass that holds all the ingrained cultural assumptions that are extremely difficult to affect.
As Torben Rick puts it, the iceberg represents “the way we say we get things done” in contrast to the deeply-ingrained “way that things actually get done” within an organization.
In other words, for managers to positively affect cultural change, they not only need to address the top of the iceberg (vision, mission, values, etc.) but they must also make inroads on the bottom of the iceberg, which makes up more like 90% of a company’s actual culture.
Unfortunately, transforming these underlying perceptions, traditions, and shared assumptions is the real hard part of the exercise, and it can take many months or even years to see the results of such initiatives.
How to Build a Strong Company Culture
Cultural change cannot happen in one week of meetings, or through a few memos sent from higher ups. To effectively shape the bottom of the iceberg – those deeply-ingrained beliefs held throughout the organization – change must happen over a longer period of time where leading is done by example, and employees have the support they need to grow.
The following infographic from ZeroCater offers six ways to help get you started in building a strong culture.
As you embark on your voyage to build a stronger company culture, remember that organizational change is more complex and ingrained than it initially seems.
The amount of companies that are successful in these endeavors is far fewer than the amount that have tried – and this iceberg of organizational culture change has sunk many ships over time.
The Biggest Ammonium Nitrate Explosions since 2000
Ammonium nitrate is dangerous, and every few years, there’s a new explosion that causes widespread damage. These are some of the biggest ones.
The Biggest Ammonium Nitrate Explosions since 2000
This week, a massive explosion involving ammonium nitrate rocked the city of Beirut, sending shock waves through the media.
This recent tragedy is devastating, and unfortunately, it’s not the first time this dangerous chemical compound has caused widespread damage.
Today’s graphic outlines the biggest ammonium nitrate explosions over the last 20 years.
A Brief Explanation of Ammonium Nitrate
Before getting into the details, first thing’s first—what is ammonium nitrate?
Ammonium nitrate is formed when ammonia gas is combined with liquid nitric acid. The chemical compound is widely used in agriculture as a fertilizer, but it’s also used in mining explosives. It’s highly combustible when combined with oils and other fuels, but not flammable on its own unless exposed to extremely high temperatures.
It’s actually relatively tough for a fire to cause an ammonium nitrate explosion—but that hasn’t stopped it from happening numerous times in the last few decades.
The Death Toll
Some explosions involving ammonium nitrate have been deadlier than others. Here’s a breakdown of the death toll from each blast:
*Note: death count in Beirut as of Aug 6, 2020. Casualty count expected to increase as more information comes available.
One of the deadliest explosions happened in Tianjin, China in 2015. A factory was storing flammable chemicals with ammonium nitrate, and because they weren’t being stored properly, one of the chemicals got too dry and caught fire. The blast killed 165 people and caused $1.1 billion dollars in damage.
In 2001, 14 years before the explosion in Tianjin, a factory exploded in Toulouse, France. The accident killed 30 people and injured 2,500. The power of the blast was equivalent to 20 to 40 tons of TNT, meaning that 40 to 80 tons of ammonium nitrate would have ignited.
In addition to factory explosions, there have been several transportation accidents involving ammonium nitrate. In 2007, a truck in Mexico blew up and killed over 57 people. Filled with explosives, the truck crashed into a pickup, caught fire, and detonated. The blast left a 60-foot long crater in its wake.
While there have been several ammonium nitrate accidents throughout history, the recent tragedy in Beirut is one of the largest accidental explosions ever recorded, with 157 deaths and 5,000 injuries and counting.
In terms of TNT equivalent, a measure used to gauge the impact of an explosion, it ranks in the top 10 of the largest accidental explosions in history:
Topping the list is yet another ammonium nitrate explosion, this time back in 1947.
Known to history as the Texas City Disaster, the port accident was one of the biggest non-nuclear explosions to occur in history. The explosion killed over 500 people and injured thousands. The impact from the blast was so intense, it created a 15-foot wave that crashed along the docks and caused flooding in the area.
A Resource With Trade-Offs
Despite being dangerous, ammonium nitrate is still a valuable resource. There’s been an increased demand for the chemical from North America’s agricultural sector, and because of this, ammonium nitrate’s market size is expected to see an increase of more than 3% by 2026.
Because of its increasing market size, it’s more important than ever for trade industries to enforce proper safety measures when storing and transporting ammonium nitrate. When safety regulations aren’t followed, accidents can happen—and as we saw this week, the aftermath can be devastating.
Ranked: The Best and Worst Pension Plans, by Country
As the global population ages, pension reform is more important than ever. Here’s a breakdown of how key countries rank in terms of pension plans.
Ranked: Countries with the Best and Worst Pension Plans
The global population is aging—by 2050, one in six people will be over the age of 65.
As our aging population nears retirement and gets closer to cashing in their pensions, countries need to ensure their pension systems can withstand the extra strain.
This graphic uses data from the Melbourne Mercer Global Pension Index (MMGPI) to showcase which countries are best equipped to support their older citizens, and which ones aren’t.
Each country’s pension system has been shaped by its own economic and historical context. This makes it difficult to draw precise comparisons between countries—yet there are certain universal elements that typically lead to adequate and stable support for older citizens.
MMGPI organized these universal elements into three sub-indexes:
- Adequacy: The base-level of income, as well as the design of a region’s private pension system.
- Sustainability: The state pension age, the level of advanced funding from government, and the level of government debt.
- Integrity: Regulations and governance put in place to protect plan members.
These three measures were used to rank the pension system of 37 different countries, representing over 63% of the world’s population.
Here’s how each country ranked:
The Importance of Sustainability
While all three sub-indexes are important to consider when ranking a country’s pension system, sustainability is particularly significant in the modern context. This is because our global population is increasingly skewing older, meaning an influx of people will soon be cashing in their retirement funds. As a consequence, countries need to ensure their pension systems are sustainable over the long-term.
There are several factors that affect a pension system’s sustainability, including a region’s private pension system, the state pension age, and the balance between workers and retirees.
The country with the most sustainable pension system is Denmark. Not only does the country have a strong basic pension plan—it also has a mandatory occupational scheme, which means employers are obligated by law to provide pension plans for their employees.
Adequacy versus Sustainability
Several countries scored high on adequacy but ranked low when it came to sustainability. Here’s a comparison of both measures, and how each country scored:
Ireland took first place for adequacy, but scored relatively low on the sustainability front at 27th place. This can be partly explained by Ireland’s low level of occupational coverage. The country also has a rapidly aging population, which skews the ratio of workers to retirees. By 2050, Ireland’s worker to retiree ratio is estimated to go from 5:1 to 2:1.
Similar to Ireland, Spain ranks high in adequacy but places extremely low in sustainability.
There are several possible explanations for this—while occupational pension schemes exist, they are optional and participation is low. Spain also has a low fertility rate, which means their worker-to-retiree ratio is expected to decrease.
Steps Towards a Better System
All countries have room for improvement—even the highest-ranking ones. Some general recommendations from MMGPI on how to build a better pension system include:
- Increasing the age of retirement: Helps maintain a more balanced worker-to-retiree ratio.
- Enforcing mandatory occupational schemes: Makes employers obligated to provide pension plans for their employees.
- Limiting access to benefits: Prevents people from dipping into their savings preemptively, thus preserving funds until retirement.
- Establishing strong pension assets to fund future liabilities: Ideally, these assets are more than 100% of a country’s GDP.
Pension systems across the globe are under an increasing amount of pressure. It’s time for countries to take a hard look at their pension systems to make sure they’re ready to support their aging population.
Business3 weeks ago
Ranked: The 50 Most Innovative Companies
Technology1 month ago
10 Types of Innovation: The Art of Discovering a Breakthrough Product
Misc2 months ago
When Will Life Return to Normal?
Technology1 month ago
How Big Tech Makes Their Billions
Markets1 month ago
What’s At Risk: An 18-Month View of a Post-COVID World
Technology1 month ago
What Does 1GB of Mobile Data Cost in Every Country?
Technology2 months ago
5G Revolution: Unlocking the Digital Age
Energy2 months ago
Tesla is Now the World’s Most Valuable Automaker