Organizational Culture: The Impact of Diverse Leadership Teams
Blog
istock.com/ALotOfPeople
13 February 2021
By Varun Sarin
How often have we been inspired by global brands and their founders for creating and sustaining brilliant organizational cultures? And why not, the culture of an organization is its identity. The moment a company is found, culture becomes an important conversation.
Like the personality traits of people, organizational culture is a composite of core beliefs, values, expectations, and practices of an organization. Despite knowing what we do about organizational culture, we often seem to forget that culture is not created in lengthy press releases or mission statements. It is created by the people of an organization who consistently implement authentic values and behaviors. And it is business leaders who empower every person in the organization to achieve this culture as well as drive change if and when required.
Driving Organizational Culture Through Leadership
Needless to say, it is essential for organizations to have a diverse and holistic leadership team to drive their culture. Understanding this need is especially critical for emerging businesses, like startups, where founders and co-founders are often seen doubling up as CEOs or CTOs. As businesses grow, organizations have to become more structured, not only in their managerial hierarchy but also in processes and practices. It is the CEO who has to shoulder these responsibilities. We have seen and heard of multiple real-life examples where founders may find their abilities stretched beyond limits while trying to play both roles successfully.
One must recognize that both roles, while of immense value, are not interchangeable. While a founder of a startup will be passionately invested in the process of discovering and developing the products, a CEO will have a deeper knowledge of the functions that the company would have to create to fulfill the company’s purpose and reflect its culture, along with the experience of working with other executives. To positively impact organizational culture, founders and CEOs must work in tandem, acting in a way that reinforces the values and beliefs of the organization. Founders must take what they value and apply it to their hiring strategies to bring on board a diverse, effective leadership team.
Show, Don’t Tell
Once the mission statement has been crafted, it is now the responsibility of the leadership team to ensure that every employee is aligned with the company’s values and purpose. As simplistic as it sounds, when employees see CXOs living the culture they aim to build, they are bound to follow suit. An effective leader will help build the organization’s culture by prioritizing it. Almost automatically, this translates into openly communicating the culture they wish to achieve while also creating a platform where employees can share their feedback. But ‘living the culture’ is more than just communicating it. For instance, a company that claims to support innovation, but has a lengthy and complex approval process for employees who want to start something new, is sending an unclear message by not practicing the values it stands for. CXOs can fill this gap in saying and doing by designing strategies that enable employees to live by the values of a company. This includes HR policies, training and development, and even CSR initiatives.
In conclusion, even in an unguided environment, organizational culture will develop. The question is, will it still be aligned with the company’s vision and values? Probably not. In the absence of a specialized leadership team that brings diversity of perspectives, skills, and experiences on board, a company’s culture might never be more than a few words placed together in one corner of the company website.