Updated: Mar 20, 2019
There is an increased focus on the discrepancies between desired corporate culture and the reality of actual culture. This has been highlighted recently by corporate regulators Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) and the 2017 Second Half Director's Sentiment Index, AICD.
The importance of culture has also been prominant in media coverage and global movements such as #metoo, with questions being raised as to why organisations have allowed inappropriate, illegal or detrimental behaviours to cultivate or be left unactioned.
As a business leader how do you know your culture is deteriorating, deviating from what is desired or has fallen into the realms of toxic?
There are many indicators that a culture may not be representative of your organisation's purpose, vision and values and may not be supporting your business objectives, your risk appetite and governance requirements. These indicators are measurable and should be monitored regularly to provide insight for executive teams and Boards to proactively address issues and ensure compliance.
The risks of ignoring culture or not correcting toxic cultures has wide spread impact from compliance and risk management; to poor financial results; destroying reputation and brand value; and opening the door to claims of workplace harassment, bullying and discrimination. Of course, the list of potential outcomes from poor culture is much greater than these few examples and the cost to business can be enormous.
An essential place to start is with an independent Culture Audit to clearly define the current reality of your organisation's culture supported by evidence. The impact and cost of these root causes will provide the business case for culture change and identify the clear priorities and return on investment.
As a business leader, CEO, or Director, are you willing to take the risk of not understanding your organisation's culture and knowing how you can work proactively to improve it?
Contact HENRY REED, to discuss your Culture Audit requirements and how we can support your positive culture improvement.
HENRY REED Pty Ltd
P: 1300 266 995