When it comes to building a robust company culture, it’s not just the CEO’s show to run or the HR department’s responsibility to shoulder. It’s everyone’s business, from the boardroom to the breakroom. It’s time to roll up our sleeves and delve into the captivating world of company culture, where every stakeholder plays a starring role. So, buckle up for a roller-coaster ride through the realms of responsibilities and the paradigms of participation in creating a culture that sings in harmony with the company’s ethos.
I. Setting the Stage: The Evolution of Company Culture
A. The Old Guard: The Top-Down Approach
Once upon a time, company culture was more of a top-down decree, a legacy passed down from the CEO’s ivory tower. The HR department, acting as the dutiful scribe, would craft a culture based on the CEO’s vision, complete with a glossy mission statement and a sprinkling of core values.
However, the pandemic-induced upheavals have swiftly dismantled this traditional model. High-profile culture crises, the diversity and inclusion drive, and the ongoing talent war have thrust company culture from the confines of HR cubicles to the strategic forefront.
B. The New Normal: The Shared-Responsibility Model
In the wake of these seismic shifts, a new culture-building model is taking root, where the responsibility is shared by everyone. It’s no longer an elusive concept influenced by everyone but led by no one. It’s a model that embraces different perspectives, from employees to customers, from middle managers to the CEO.
In this model, culture is defined as the collective behavior, attitudes, and beliefs that shape the organization’s identity. It’s the formal and implicit norms that dictate “the way we do things around here.” It’s an ecosystem where everyone is accountable for nurturing the desired culture.
II. The Great Divide: The Gap Between Existing and Desired Culture
A glaring gap often exists between the current culture and the desired one. To bridge this gap, the shared-responsibility approach assigns different roles to different stakeholders.
While the actual implementation may vary, the general distribution of responsibility is as follows:
1. Board of Directors: Guide the development of the desired culture, aligning it with business goals and stakeholder needs.
2. CEO and Senior Management: Define and cultivate the desired culture through strategic actions and organization design.
3. Human Resources Department: Design employee experiences that reinforce the desired culture and develop culture-building programs.
4. Compliance, Risk, and Ethics Department: Ensure alignment between the desired culture and risk management strategies.
5. Middle Managers: Deliver employee experiences and implement culture-building strategies.
6. Employees: Provide input on the desired culture and adhere to norms that interpret it.
III. Under the Spotlight: The Roles of the Board and Middle Managers
A. Board of Directors: The Glue that Holds an Organization Together
A company’s culture can be both an asset and a risk. The board of directors, often overlooked in culture-building, must play a more active role. They should guide the development of the desired culture, align it with business goals, and meet the needs of all stakeholders. Their responsibilities include designating culture as a regular agenda item, commissioning culture audits, and vetting public statements about the organizational culture.
B. Middle Managers: The Culture Catalysts
Middle managers, the unsung heroes of the corporate hierarchy, have a significant influence on employees’ daily experiences. They should ensure that the work environment aligns with the company’s culture, apply the culture-building strategies to their teams, and role-model the desired culture.
IV. The Impact: Culture-Building Results in Business Performance
The shared-responsibility approach to culture-building can yield impressive business results. A well-aligned, effective culture can improve business performance and impact the bottom line. Case in point: Old Mutual Wealth’s revival from the financial crisis, driven by a customer-centric culture change that doubled its share price in five years.
V. Moving Forward: The Changing Face of Organizational Culture
The cultural landscape of organizations is evolving. The shared-responsibility approach to culture-building reflects and demands changes in the nature of organizational culture and its impact on the business.
Culture has transitioned from being a code established by leaders to a toolkit for everyone to draw from and contribute to. It needs to be adaptable, changing with external pressures and internal transitions. Any attempts to lock in a certain type of culture will, at best, fail and, at worst, impede the organization’s competitiveness and sustainability.
VI. The Big Question: Who Owns Company Culture?
A common misconception is that the company culture is the sole responsibility of the leaders or the HR department. Contrary to this belief, culture is the sum of everyone’s behavior. Leaders may have the final say in defining the culture, but they must walk their talk, ensuring their behavior aligns with their words.
Employees, on the other hand, should have more than a say. They should be actively involved in the design of the culture, contributing to drafting the blueprint of the desired culture.
VII. A Culture of Apathy: The Need for Employee Involvement
A top-down approach to culture often breeds apathy. There’s a disconnect between the culture leaders perceive and the one employees experience. Overcoming this apathy begins by involving employees in the conversation, driving participation and fostering a sense of ownership.
VIII. Defining Roles and Responsibilities in Culture-Building
There are five key steps in the process of designing and implementing culture: Design, Define, Demonstrate, Demand, and Display. Each step involves various stakeholders with specific roles and responsibilities.
Leaders play a crucial role in defining the culture, setting the tone, and modeling the desired behavior. Managers serve as the link between employees and leaders, establishing consistency and connection. Employees, in turn, contribute to creating a caring and inclusive community, fostering a sense of belonging.
IX. A Shared Responsibility: Everyone Plays a Part
Contrary to the notion that company culture is “HR’s job,” it’s a shared responsibility. From the CEO to the newest recruit, everyone has a part to play in shaping the culture. Employees have a crucial role in building a sense of community and fostering a feeling of belonging, which are fundamental components of a strong culture.
X. The Bottom Line: A Strong Company Culture is a Joint Effort
In conclusion, the creation and maintenance of a strong company culture are a joint effort. It’s a shared responsibility, a common cause, a united front. It’s everyone’s business. From the CEO to the newest recruit, everyone has a part to play in shaping the culture. Through a shared commitment to a common purpose and a shared accountability for the desired culture, every stakeholder can contribute to a robust, cohesive, and vibrant company culture. After all, in the grand theatre of corporate existence, culture is the star that shines the brightest.