Board Directors still grapple with the Culture Issue
Today’s Board Directors have a multitude of priorities and their agenda is far deeper than in years past. A quick browse through the top consulting firms shows the list is extensive from Big Data, Digital and Strategy oversight to Board composition, risk mitigation and cybersecurity to shareholder engagement, and of course M&A transactions to shareholder activism. Somehow, the Board’s list of pressing concerns never seems to include company culture.
According to Board Agenda, directors are coming to grips with the effects of corporate culture, the unique traits and attitudes that define their organizations. (Nov. 6, Hinks) While boards realize the value of setting a productive culture, they aren’t consistently taking a hands-on approach to this category of management. Further research on this topic was recently published by the National Association for Corporate Directors (NACD) under their Blue Ribbon Commission umbrella.
When it comes to actually setting aside time to discuss and affect corporate culture, many boards haven’t given this the attention it deserves. Nor do they know what to about it. Over one-fourth of executives surveyed say they haven’t given time and focus to aligning strategy and purpose with culture. Approximately one-fourth more acknowledged that while they are working toward greater unity between strategy, execution and culture, gaps still exist.
Boards are critical assets of any culture change within their organizations due to its strong impact on employee perception. When it comes to setting out what a company does and how it performs in a day-to-day capacity, workers of all levels look to the top for guidance – this includes the members of the board.
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