A recent article by Nicholas Barnett for Governance Institute Australia deals with the role of Boards and senior leaders in create culture in the organisation (read it here).
He refers to ‘Tone at the top’ which he notes as, “being a high bar for honesty, integrity and ethical behaviour noting that it is a foundation stone for forming and shaping a robust, resilient and ethical culture”. While typically thought of as being the board and CEO, it also includes executives, audit and risk committees, etc. By setting a high bar, research has shown that both character and performance make for more trusted and higher performing organisations.
Recent exposure of poor culture in the financial services insider in particular has highlighted the need for organisations to ensure they are caring for their culture, and that it is being developed from the very top.
You will need to read the entire article for the full explanations, but a summary of the key behaviours to form a good culture include:
- Don’t be afraid to say sorry and show genuine remorse
- Words are cheap: You must walk the talk
- Systems, incentives and consequence management may need to be re-aligned
- The chair and the CEO are the chief integrity and ethics officers
How does you organisation compare to these practices? Is it time for a culture check? The Avondale Business School (ABS) can help you. To find out how, simply contact Warrick Long via [email protected] or 02 4980 2168.