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Entrepreneurship

The Iceberg That Sinks Organizational Culture Change

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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.

The Iceberg of Organizational Culture Change

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.

How to Build a Strong Company 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.

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Entrepreneurship

Craft Beer Boom: The Numbers Behind the Industry’s Explosive Growth

This infographic takes a closer look at the craft beer revolution sweeping across the U.S,. and its far reaching economic impact.

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All movements start with rebellion, and the craft beer revolution is no different.

Born from the frustration of mass-produced beer made from cheap ingredients, entrepreneurs went head-to-head with global brewery giants to showcase local and independent craftsmanship.

Suddenly, drinking beer became less about the alcoholic content and more about the quality and experience. Craft beer allowed for constantly changing flavors, recipes, and stories. With sales accounting for 24% of U.S. beer market worth over $114 billion, the global craft beer movement has been historic.

Which States Bring Home the Beer?

Today’s map from C+R research demonstrates the growth of the craft beer market, by ranking the U.S. states based on craft breweries per capita.
The Rise of Craft Beer in the U.S.

The data for this visualization comes from The Brewers Association—an American trade group of over 7,200 craft brewers, suppliers, and distributors, as well as the Alcohol and Tobacco Tax and Trade Bureau.

According to the data, Vermont has emerged as the craft beer capital of the U.S. with 11.5 breweries per 100,000 people. That’s equal to 151 pints of beer produced per drinking-age adult. Following closely behind are Montana and Maine, each with 9.6 breweries per capita.

You’ll notice that in Southern states such as Alabama, Georgia, and Mississippi, that there are only 0-0.9 breweries per capita. This is actually because of tighter liquor laws—for example, only 10 years ago, it was illegal to sell specialty beer in South Carolina that contained more alcohol content than a typical Budweiser.

Becoming a Brewery Nation

In 2008, there were only 1,574 breweries across the United States.

However, as you can see in the below data from the Brewers Association, the total amount of craft breweries, microbreweries, and brewpubs has climbed to 7,346 in just a decade.

 20142015201620172018Change ('17-'18)
Total U.S.3,8694,6725,6066,5967,45012.9%
Regional Craft13517818620223013.9%
Microbreweries2,0762,6263,2513,9334,52215%
Brewpubs1,6031,8242,1022,3552,59410.1%
Total Craft3,8144,6285,5396,4907,34613.2%
Large/Non-craft4644671061041.9%

Of the three categories of craft beer, microbreweries have contributed the most to recent production growth. Last year, they accounted for 80% of this growth, up from 60% in 2017.

The term microbrewery refers to the maximum amount of beer the brewery can produce. For microbreweries, that number is 15,000 barrels (460,000 U.S. gallons) of beer per year. They also have to sell 25% or more of their beer on site, which is why we are witnessing a surge in breweries that double up as a restaurant or bar.

Comparing this data to figures on larger breweries available from the Breweries Association, it is clear that it is the larger, more established breweries that are feeling the heat. While their growth slows, more small breweries open, and sales are further cannibalized.

The Economic Impact of the Craft Beer Market

When it comes to pure dollars, C+R Research notes that Colorado comes in at #1 with an economic impact of $764 per person. Vermont is at the #2 spot with an economic impact of $667 per person, despite having a higher concentration of breweries per capita.

How do the rest of the states compare?
Economic Impact
The global craft beer market is expected to reach $502.9 billion by 2025—while the craft brewing industry contributed $76.2 billion to the U.S. economy in 2017, including more than 500,000 jobs.

Will Craft Remain a Growth Category?

While many argue that craft beer is approaching its peak, the data is promising. Experimentation with new processes and ingredients will continue to drive the market forward.

Craft brewers all over the world are tapping into the novelty factor by exploring weird and wonderful innovations, like deer antler-infused beer and take-home brewing kits.

While the overall beer market lagged in sales by 0.8% last year, the craft brew category grew by 3.9% using the same measure. Further, craft still only makes up 13.2% in total beer volume in the U.S., meaning there is still plenty of market share to gain.

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Economy

The World’s Most Innovative Economies

What countries have the most innovative economies? This index uses seven equally-weighted variables, including R&D spending and patents, to rank countries.

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The World’s 10 Most Innovative Economies

In the 21st century, innovation has become the heart and soul of economic policy. Developed and developing nations alike are in the race to leave industrialization behind, adapting instead to technology-focused, entrepreneurial societies.

Customized cancer treatment, faux meat products, and the smart home technologies are frequently positioned as ‘the next big thing’. But which countries are consistently innovating the most?

Today’s graphic comes from the seventh annual Bloomberg Innovation Index and highlights the 10 most innovative economies, and the seven metrics used to rank 2019’s top contenders.

Measuring Innovation

Bloomberg calculated each country’s innovation score using seven equally-weighted metrics.

  1. R&D Spending
    All research and development funding invested in an economy each year.
  2. Patent Activity
    Number of domestic patents filed, total patent grants, patents per population, filings per GDP, and total grants awarded measured against the global total.
  3. Tertiary Efficiency
    Total enrollment at post-secondary institutions, graduation levels, and number of science and engineering graduates.
  4. Manufacturing Value-added
    Manufacturing output levels that contribute to exports and domestic economic growth.
  5. Productivity
    Overall productivity levels of the working-age population.
  6. High-tech Density
    Number of domestic high-tech public companies, measured against the number of domestic public companies and the global total of public high-tech companies.
  7. Researcher Concentration
    Number of professionals currently engaged in research and development roles.

More than 200 countries were initially considered for Bloomberg’s Innovation Index. Any country reporting in less than six categories was automatically eliminated, leaving 95 countries remaining. Bloomberg publishes the results for the top 60 most innovative economies each year.

Notable Countries in the Top 60

The U.S. rejoined the top 10 after dropping to 11th in 2018 for low scores in education. Israel moved up five spots to 5th place, while Romania made the largest overall gain, jumping six spots to rank in the top 30.

2019 RankEconomyTotal ScoreChange in Ranking
#1🇰🇷 South Korea87.380
#2🇩🇪 Germany87.32
#3🇫🇮 Finland85.574
#4🇨🇭 Switzerland85.491
#5🇮🇱 Israel84.785
#6🇸🇬 Singapore84.49-3
#7🇸🇪 Sweden84.15-5
#8🇺🇸 United States83.213
#9🇯🇵 Japan81.96-3
#10🇫🇷 France81.67-1
#11Denmark81.66-3
#12Austria80.980
#13Belgium80.431
#14Ireland80.08-1
#15Netherlands79.541
#16China78.353
#17Norway77.79-2
#18United Kingdom75.87-1
#19Australia75.38-1
#20Canada73.652
#21Italy72.85-1
#22Poland69.1-1
#23Iceland68.411
#24New Zealand68.12-1
#25Czech Republic68.093
#26Malaysia67.610
#27Russia66.81-2
#28Luxembourg66.374
#29Romania64.786
#30Spain64.52-1
#31Slovenia64.11-
#32Hungary63.05-5
#33Turkey62.890
#34Portugal62.79-4
#35Greece62.05-4
#36Estonia61.790
#37Lithuania59.73-3
#38Hong Kong58.9-1
#39Slovakia58.03-1
#40Thailand57.775
#41Bulgaria56.360
#42Latvia55.46-2
#43Malta55.43-4
#44Croatia54.98-2
#45Brazil53.62-
#46U.A.E.52.93-
#47Iran52.812
#48Cyprus52.05-1
#49Serbia51.35-5
#50Argentina51.31-
#51South Africa51.03-3
#52Tunisia48.92-9
#53Ukraine48.05-7
#54India47.93-
#55Kuwait47.27-
#56Saudi Arabia47.18-
#57Qatar46.58-
#58Chile46.4-
#59Mexico46-
#60Vietnam45.92-

Brazil rejoined the list at number 45, after not being included on the 2018 list. The United Arab Emirates made the list for the first time, marking the highest debut ever at number 46.

Tunisia and Ukraine were the two countries with the largest losses, which both fell out of the top 50 this year. To date, South Africa is the only Sub-Saharan nation to be ranked in the index.

Newcomers to the Innovation Index in 2019 are some of the largest emerging economies, such as India, Mexico, Vietnam, and Saudi Arabia.

Impact of Global Innovation

Innovation is complex─many factors play a role in the ideation, development, and commercialization of any new technology. And while innovation success can fuel economic growth, it is generally more accessible in high-income economies, where R&D funding is readily available.

“The battle for control of the global economy in the 21st century will be won and lost over control of innovative technologies.”

—Tom Orlik, Bloomberg Economics

The focus of an economy that prioritizes innovation, however, is not simply allocating resources for a group of people─it’s discovering new methods, models, and products that create a better quality of life for society.

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