However, the business school INSEAD recently found that very few board directors are actually clear about what they want to achieve regarding the corporate culture of their company.
Corporate culture is not a high priority for boards
Four hundred and fifty CEOs, CFOs, directors, risk officers and other senior leaders were surveyed. Fifty percent of respondents see the board as being reasonably clear on what it expects from culture. For one-third, it is not clear or there is lack of discussion. Only 20% said that culture is fully considered at board meetings and 40 % think that not enough time is devoted to culture.
The two topics that are discussed the most by boards are strategy and financial performance, and culture comes third. When culture is discussed, people are aware of how it links to the overall strategy. The goal of culture change programs aimed at employees is to increase their motivation and productivity.
Good news: Leaders know culture beats strategy
Board directors are fully aware that business performance depends on corporate culture. When it comes to influencing culture, senior leaders generally believe that they themselves should set the right tone, and that the CEO should support the culture that is desired.
So the boards know about it, but there is a big gap between knowing and doing. Awareness at the top is high, they know they should promote culture, but effective board practices are missing.
-jk-