Shaping Business Culture & Tackling Dysfunctional Leadership

One element stands out as the silent orchestrator of organisational harmony and success: culture. Business culture, the ethos that permeates every facet of an enterprise, is not merely a by-product of collective actions but a consciously crafted identity that reflects the values, beliefs, and behaviours ingrained within the company's DNA. While it manifests in various forms across departments and functions, the driving force behind this culture undeniably emanates from the upper echelons of leadership. But creating a successful culture is a delicate balancing act. It needs to be strong enough to provide a unified foundation yet flexible enough to accommodate the diverse needs of different departments.

The adage "culture eats strategy for breakfast" attributed to management guru Peter Drucker resonates profoundly in today's corporate landscape. Indeed, no matter how meticulously crafted a business strategy may be, its efficacy hinges largely on the alignment with and reinforcement of the prevailing organisational culture. From fostering innovation to nurturing employee engagement and enhancing customer satisfaction, a robust culture underpins the very fabric of sustainable growth and competitiveness.

At the helm of this cultural journey are the leaders – the captains steering the ship through turbulent waters and charting the course towards prosperity. It is they who wield the brush that paints the canvas of corporate culture, imprinting their values and vision onto the collective psyche of the workforce. Whether it's the CEO setting the tone for transparency and accountability or department heads championing collaboration and empowerment, the influence of leadership permeates every aspect of organisational culture.

Leaders establish expectations, model desired behaviours, and create the overall work environment. If the CEO prioritises ruthless efficiency, the company culture will likely reflect that, even if the HR department strives for a more collaborative atmosphere.? Employees take their cues from leadership, and a misalignment between stated values and executive actions can breed confusion and cynicism.

Moreover, the need for cultural alignment across diverse business sectors and functional divisions cannot be overstated. With business success often characterised by interdisciplinary collaboration and cross-functional synergy, siloed cultural paradigms pose a formidable barrier to organisational cohesion and effectiveness. Sales, finance, operations, HR – each division brings its unique set of challenges and priorities to the table.

A one-size-fits-all cultural approach rarely works. Sales thrives on competition and quick decision-making, while finance might prioritise accuracy and meticulousness. Operations crave efficiency and clear processes, whereas HR needs a people-centric and empathetic approach.? The underlying culture should provide a sense of unity and shared purpose, but departmental practices can (and should) differ to optimise performance.

For example, a company with a core value of "innovation" might empower the sales team to experiment with new closing techniques, while the finance department utilises a more standardised approach to ensure financial stability. Both approaches contribute to the overall goal, but through different methods that cater to departmental needs.

While departmental cultures can diverge, a strong underlying general culture acts as the unifying thread. This core set of values should resonate across all departments, fostering collaboration and a sense of shared purpose. Here are some examples:

• Customer Focus: Regardless of department, everyone should understand and prioritise the needs of the customer.
• Integrity: Ethical behaviour and fair practices should be ingrained in all aspects of the business.
• Continuous Improvement: A culture that encourages learning and adaptation benefits every department.

The key, therefore, lies in fostering a culture that strikes a delicate balance between sector-specific needs and overarching organisational values. This requires a nuanced approach to leadership that acknowledges and accommodates the diverse perspectives and aspirations within the workforce. While the general cultural ethos must remain consistent across the board, leaders must be adept at tailoring their management styles and communication strategies to resonate with the unique dynamics of each division.

The beauty of a well-defined culture is that it allows for diverse personalities to flourish.? An introvert in finance can excel with their meticulousness, while an extrovert in sales can leverage their enthusiasm to close deals. Great leaders understand this. They create a culture that attracts and retains talented individuals while providing the autonomy for them to leverage their strengths within the established framework.

However, when a company's culture becomes a hindrance rather than a helper, it's a recipe for disaster.? Disempowered employees, stifled innovation, and ultimately, a stagnant business are all potential consequences of a dysfunctional culture. But what happens when the very person who created that culture – the CEO or founder – is the driving force behind it?? Is positive change even possible? The answer, thankfully, is yes.

Diagnose the Problem

The first step is understanding the specific ways the culture is detrimental. Here are some red flags:

• High turnover: People feeling stifled or unsupported are likely to leave.
• Low morale: Apathy and disengagement are hallmarks of a toxic culture.
• Fear-based decision-making: Innovation suffers when employees are afraid to take risks.
• Silos and poor communication: Collaboration becomes difficult, hindering efficiency.

These are just a few examples. Once you identify the specific issues, you can start crafting a plan.

Data is Your Ally

Don't rely solely on anecdotal evidence. Gather data to support your concerns. Employee surveys, exit interview summaries, and even performance metrics can all paint a picture of how the culture is impacting the business.? Present this data objectively to leadership, focusing on the impact on the bottom line and employee well-being.

Build Alliances

Change rarely happens in a vacuum. Identify other internal leaders who share your concerns.? Together, you can create a stronger voice and present a more unified front.

Focus on the "Why"

Don't simply criticise the existing culture. Frame your arguments around the "why" of change.? Explain how a more positive, collaborative culture can benefit the business – increased innovation, improved employee retention, and ultimately, higher profits.

Start Small, Win Big

Don't attempt to overhaul everything overnight.? Focus on small, achievable wins.? For example, propose a pilot program for a new communication channel or a training session on fostering teamwork. Demonstrating positive results from these small initiatives can build momentum for larger changes.

Leverage External Resources

Seek out resources to help you. Industry publications, HR consultants, and even leadership coaches can provide valuable guidance and best practices for cultural transformation.

Be Prepared for Resistance

Change, especially at the leadership level, can be met with resistance.? Be prepared to address concerns and demonstrate patience. The key is to focus on the long-term benefits for the company and its employees.

While it may seem an insurmountable task to change a culture driven by the CEO or founder, there's still hope. Founders are often passionate individuals who may simply not recognise the negative impact of their established culture.? By presenting data, focusing on the positive outcomes, and demonstrating the effectiveness of alternative approaches, you may be able to influence their perspective. Even if you can't completely change the CEO/founder's perspective, your efforts can still have a significant impact. Transforming a toxic culture takes time, courage, and a collaborative effort.? But for the sake of your own career fulfilment, the well-being of your colleagues, and the long-term success of the company, it's a battle worth fighting.

While personalities may vary and leadership styles may differ, the underlying principles of organisational culture serve as the North Star guiding the collective journey of the company. Building a successful business culture requires constant attention and adaptation. By balancing the need for a strong core culture with the flexibility to cater to departmental needs, companies can create a work environment that fosters collaboration, innovation, and ultimately, success.

Mark Geraghty

Partner

Executive Recruit Ltd

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