‘…….Culture eats strategy for breakfast’ is one of the most popular sayings by management consultants, heavily borrowed from Mr. Peter Drucker, management consultant extraordinaire, educator and author. At Akira Consult Limited when we have the honor to train Boards, we always remind the Board Members that one of the most impactful roles that the Board can do well is to ensure that the organisation has the right culture to be able to execute the (Board) approved strategy. Culture is the culmination of the shared values, beliefs and assumptions that shape the behaviour of an organisation.

Boards can deepen their understanding of a company’s culture, by placing it on the board agenda, discuss it by asking the right questions and ensuring that management is forging a culture aligned with the business strategy. A company’s culture can make or break even the most insightful strategy or the most experienced executives. On the other hand, a damaged culture can impede strategic outcomes, erode business performance, diminish customer satisfaction and loyalty, and discourage employee engagement.

So what questions should a Board ask of management to get a better understanding of the organisations’s culture?
1.What is the current culture of the organisation?
Culture is the “unwritten rules” that guide the decisions of employees daily. Question: What are those unwritten rules that everyone just knows but can’t necessarily articulate clearly?
2. How well-aligned is our corporate culture with our strategy?
A high-performing organisation with a strong alignment between culture and strategy produces better financial growth and employee engagement. Question: What organisational behaviours are required to achieve our strategy?
3. What is the difference between our current and ideal corporate culture?
Effective leaders can describe both the culture as it currently exists and the culture to which the organisation aspires. Question: What cultural challenges do we face and how will we overcome them?
4. How do we consider culture in our succession plans?
Culture evolves over time. Boards should try to understand how talent management, employee evaluations and top executive recruiting shapes the future culture of the company. Question: To what extent do our top leaders contribute to the culture we are striving to achieve?
5. Where on the board agenda should we put questions about culture?
Given their current demands, boards are unlikely to tackle questions about company culture unless the issue is explicitly part of the agenda. So where on the annual board calendar should culture fall? Possibly in the Annual Strategy Retreat to align with the corporate purpose and as well within the Human Capital discussions to trickle down into talent management.

Speak to Akira Consult Limited today and we can plan a session with your Board and management to align on Corporate Culture!