Where should your board start with culture governance?

HOW TO TALK ABOUT THE BUSINESS ISSUE 21

In this series, I have been sharing some key take-aways from a recent roundtable presentation for the Australian Institute of Company Directors on the board’s role in leading organisational culture.

In this fourth and final instalment, I share my suggested starting points to go to your board with, to begin your review and planning of culture governance.

Starting points for good Culture Governance with your Board

1. Ask the Right Questions of the Board

Initiate meaningful discussions by posing fundamental questions:

• "What is culture?": Establish a shared understanding of the term to ensure alignment.
• "What is our culture?": Reflect on the organisation’s current cultural identity.
• "How connected are people to that culture?": Evaluate employee engagement with organisational values.
• "How do we know that?": Emphasise the importance of data and evidence to assess cultural alignment effectively.

2. Get Board Buy-In

Build awareness of gaps, risks and opportunities in the current cultural state. Present examples or scenarios you’ve seen that present potential blind spots for the organisation, and invite the board to do the same.

3. Know the Landscape

Equip the board with a comprehensive understanding of the ‘culture landscape’:

• Board Training: Provide targeted training to ensure board members are informed about critical cultural issues and trends.
• Internal Insights: Develop a clear picture of how the organisation currently approaches culture management.
• Competitor Awareness: Stay informed on how peers and competitors are embedding culture in their governance, using this insight to refine your approach.

4. Demand Key Data in Board Papers

Ensure the board receives meaningful, actionable data on culture by asking for what you want to see. Your requirements should be informed by your understanding from the above action points, to focus the board’s attention in a limited amount of time. Insist on reports that provide clear analysis, rather than pages and pages of data for board members to wade through!

5. Assess the Fit and Effectiveness of Purpose and Values

Emphasise the critical task of evaluating whether the organisation’s stated purpose and values resonate with employees and drive desired behaviours. If they lack clarity, relevance, or alignment, work with management to create a plan to refine these foundational elements, to better support the organisation’s cultural goals. While this is an in-depth undertaking, the organisation’s Purpose and Values are fundamental to a healthy, aligned and future-fit culture.

6. Choose a Comprehensive Culture Framework to connect everything and everyone

Select a culture framework that connects all aspects of the organisation – such as strategy, governance, leadership, employees, systems and practices. A cohesive framework ensures that culture becomes an integral part of decision-making, accountability, and day-to-day operations across the organisation. It connects everything and everyone.

In the AICD boardroom discussion, I shared NWC’s Culture Governance Planner for board directors – a way of bringing all the key puzzle pieces of culture on one page, including considering risk factors, key metrics and blind spots in your organisation. This was a starting point inviting discussion on which elements were front-of-mind for directors and which might be currently being missed. For board directors and senior management interested in understanding this planner, get in touch.

Author: Julissa Shrewsbury I Director, New Work Consulting