Precor shapes up to a change of culture

Abstract

PurposeExamines how global fitness‐equipment manufacturer Precor has achieved cultural change through a strategy founded on increasing, and rewarding, personal accountability for results.Design/method/approachShows that, through training, Precor established direct connections between each employee and the corporation's financial performance. Describes how company‐wide communications, performance‐management processes, and reward‐and‐recognition programs support the change.FindingsDemonstrates how, through training, an organization can cause individuals and departments to embrace a culture of personal ownership, accountability and reward. Highlights the fact that, since Precor committed itself to organizational change, corporate revenues have increased by more than 50 percent and profitability is up by more than 200 percent.Originality/valueIllustrates that management can institutionalize a culture of personal ownership and accountability that generates superior financial results.