Corporate culture as a top manageent issue (2/2): Aligning culture and strategy

A strong company culture, fosters an ethical approach, promotes innovation and determines overall performance. Culture also influences company values, mission and the atmosphere in general.

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In the previous article, we discovered that there is a discrepancy between what top managers believe and what they do in practice about company culture. Therefore, let's have a look at what should change.

Start with asking questions

What kind of interactions, behavior and data can be observed? Maybe the board has too many topics to discuss. Most successful boards have an in-built ability to self-reflect. There are sessions organized before and after a board meeting to reflect on what should be discussed in addition to regular affairs. Sentiments or brief observations are shared and signals of larger issues may be identified early, according to an article on the website of business school INSEAD.

Culture should be moved to boards – lifted from the HR department. Top managers should take part in articulating corporate values and norms. Conducting surveys and organizing programs fostering the appropriate culture is important. If the culture isn't at optimum levels, senior leaders need to be clear about what they actually want from it. Otherwise, they can't set out on the path towards achieving the necessary change.

Common pitfalls

Culture issues must not be dealt with too superficially. When complexity is reduced too much or there's an effort made to change culture by imposing new rules, regulations and policies, it's not really helpful. When authenticity is missing, employees won't take it seriously.

Top leaders as a group need to understand the organizational atmosphere. The current state should be assessed based on measurable data. The clear priority is aligning culture and strategy. Culture should also be a frequent factor when risk management is considered.

-jk-

Article source INSEAD Knowledge - INSEAD Business School knowledge portal
Read more articles from INSEAD Knowledge

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Corporate culture as a top manageent issue (1/2): Effective practices are missing

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Corporate culture as a top manageent issue (2/2): Aligning culture and strategy