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Do you remember when influencing organizational culture was considered an HR priority? As the workplace evolves, CEOs realize that company culture is directly tied to company performance and growth.
In a study by Deloitte, “94% of executives and 88% of employees believe that a distinct work culture is important to business success.” A positive and productive culture ensures greater employee retention, attracts top talent and increases revenue. That's what a great CEO works for.
If senior management agrees on the importance of workplace culture, why is employee engagement and culture the number one challenge for companies around the world?
CEOs get drunk “for a specific purpose.” Establishing a company's core values, purpose, vision and value proposition is only the first step in building a positive workplace culture. It's exciting to talk about the ideal culture and start to believe the statement on your website. Some of the best CEOs fail to create a positive workplace. Well-intentioned leaders fail to integrate simple, core values into the everyday work environment.
As a CEO mentor, I share with my clients that when a company isn't people-focused, it always falls behind.
Leadership influences the everyday work environment through its actions, interactions and decisions. Employees demand that CEOs go beyond powerful statements on social media and represent the culture in business decision-making.
Related: What Makes a Great Company Culture (and Why It's Important)
1. Understand deeply what your culture is today
Recent research has shown that CEOs have a much different understanding of the current state of culture than actual employee reports. Conduct employee surveys and use the data as a starting point. Then hold Transparency Point (TMP) meetings with employees at all levels to refine patterns and ask questions like: “What's really bothering you?” By collecting data and maintaining an objective view, the leadership team can accurately assess where cultural strengths and opportunities lie. Don't let your vision for the company or what the company tactically does for employees cloud your view of the truth.
2. Introduce core values that hurt
If there was another term for core values, it should not be negotiable. The company's core values should guide all business decisions. If one of your company's core values is “Benevolent Honesty” and a customer walks in the door rude to your team and is still willing to write a check for $100,000, what would you do? The decision you make at this point will have a monumental impact on the culture. It will be difficult to repair trust broken by deviating from core values. Saying no, explaining to your team why, and reinforcing your core values will demonstrate a sense of pride and consistency that employees need to see.
3. Determine your crisis leadership style before the crisis
Have you ever had a leader that you followed into battle? It's because you trusted their leadership. If you want to know someone's true character, look at how they handle a stressful situation. A CEO's reputation will be judged when an employee makes a mistake, when a team loses a big customer, when a service doesn't sell, etc. Forward-thinking CEOs prepare for crises by adopting a worst-case scenario mindset. Their reactions and decisions should directly relate to the core values of the organization. Result? Employees will have trust, respect and commitment to the CEO and the organization.
4. Be a role model in communication
According to Zippia research, 86% of people blame poor communication for company failures. Overcommunication is the most effective strategy because employees want to feel part of the bigger picture and also want to have access to development opportunities. In the best company cultures, one of the most important characteristics is open, honest and constant communication. The CEO doesn't have to take bad news on himself, share it openly with the team and be ready to receive feedback and suggestions.
Related: 10 Examples of Great Company Culture for Inspiration
5. Empower your community
Employees are much more successful when they feel they are part of something bigger. When a CEO can cultivate a sense of community that includes teamwork, accountability, and clear roles that connect to the bigger picture, organizational performance will be unstoppable. A positive workplace culture isn't fluffy. She is full of responsibility, accountability and ownership.
CEOs influence a positive workplace culture by focusing on people, living by core values, supporting open communication, and building a sense of community within the organization. Every leader at the top of every organization must recognize that their actions and behaviors have the greatest impact on workplace culture. Build an authentic culture that reflects the people who work there, the customers you serve and the impact you want to make. The right company culture enables the organization to perform at its best.
A positive culture can be achieved with real effort and intentional focus from the top down.
