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Why your company's culture is more important than ever

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Culture is one of the things that everyone agrees to be important, but I’m not sure how to ensure that it’s positive rather than toxic. This is becoming increasingly unacceptable as all aspects of organizational behavior are becoming increasingly scrutinized due to the increasing importance of environmental, social and governance (ESG) measures. Proponents of good culture have long argued that it can improve the outlook in the long run. However, it is also true that there is a link between poor performance and poor performance. Toxic culture, for example, is widely cited as a factor behind mass layoffs. Of course, to improve performance, you need to understand and manage your culture. And, according to new reports from consultancy LRN and Tapestry Networks, that means a bigger role for the board.

Evaluation of corporate culture As its subtitle says, it’s a practical guide to improving board monitoring. Leverage the expertise of directors and other executives from multiple companies that play a leading role in compliance and ethics to set up a framework of recommended practices and tools. But the key issue is that the board, like any other activity, needs to be prepared to ask executives about culture. And to do this, you need to have a better idea of ​​how to assess whether your organization’s culture is good, bad, or indifferent. Ty Francis, LRN’s Chief Advisory Officer, said:

The report shows different ways to fill this gap. It focuses on accessing direct data such as employee surveys, focus groups, site visits, internal audit reports, and indirect sources such as turnover and absenteeism. Views on Glassdoor and social media and promotion rates, and detailed questions to executives and other managers. But an important factor is to ensure that executives know that board members, in Francis’ words, “they want to hear about this.” He adds: “This is not a footnote. This is what they have to do.” And the basic part is that board members themselves to make sure their culture is strong and appropriate. Includes examining yourself.After all, this teeth Something coming from above.

It’s important for board members to recognize that there are no endpoints, just as there is no right or perfect way to do this. This is an ongoing measurement process, and individual board members need to understand that culture is more risky than anything else. As a result, dialogue is required between managers and board members. Initiatives such as regular pulse checks allow people to see problem areas, says Francis.

But in the end, we have to accept that culture is at the heart of the matter. Not only is Francis calling it an “architecture that enhances what the company represents,” it is important for sustainable success. Not too long ago, the best companies could have set up great stores because of their strong culture, but others could argue that they don’t have to worry about it. Managers can take a short-sighted view and focus on achieving quarterly goals and satisfying the market. No more. With general growing interest in ESG between investors and Larry Fink, chairman and chief executive officer of multinational investment firm BlackRock, an annual letter calling on the CEO to show his purpose. Writing and culture are our top priorities. The board points out that a long-term perspective should be taken, and Francis concludes: “If the culture isn’t right, there’s no way to be strategic.”