Fiona Smith – Principal Consultant
Some organisations struggle to embed their corporate culture and values. For others, their values become a real source of competitive advantage.
Firms whose culture and values are rated highly by employees have one thing in common: they consistently live their values. They ‘walk the talk’ or, to paraphrase Ghandi, “are the change they wish to see in the world”.
In the eyes of the regulator, embedding a positive culture is key to ensuring fair outcomes and regaining the trust of consumers. That’s not new I hear you say? Correct. What is new however is the increasing realisation from firms that compliance with the new Senior Managers Regime is as much about culture as it is about documenting Responsibility Maps, clear lines of accountability, and implementing a Certification Regime.
We looked at some organisations whose culture is consistently highly rated by their employees. Notwithstanding some of the more ‘quirky’ practices adopted by some firms (slides, rooftop meetings, unlimited vacations), digging deeper we found that what truly make these companies special is how they live their values. We identified some clear best practice themes.
Made by us
The values and mission are made by the organisation and express their uniqueness.
Mean it
Values and the companies’ mission are consistently demonstrated across the senior and middle leadership population.
A ‘call to action’
Employees contract to join a higher purpose in which people feel they can really make a difference. For example, Google talks about organising the world’s information, Twitter gives everyone the power to create and share information, Edelman influences attitudes and behaviours in a complex world, and Chevron safely provides energy products vital to sustainable economic progress and human development throughout the world.
Courageous
Values can become game changers. Organisations differentiate themselves by creating values which shun the boring and, quite frankly, basic values chosen by the majority of businesses nowadays. Values such as integrity, respect and trust should ultimately be held by all organisations. The most highly rated firms go a step further, with values which encourage their people to push the boundaries, experiment and explore:
- Google – ‘Do the right thing; don’t be evil’
- Twitter – ‘Defend and respect the user’s voice’
- Riverbed – ‘We encourage our people to share their unique contributions’
- South West Airlines – ‘Warrior spirit, servant’s heart’
Stability of leadership
Edelman has had two CEO’s (father and son) since 1952. Google was founded in 1998, but Larry Page and Sergey Brin met at Stanford University in 1995, and started developing their first version of the search. There is no doubt that a stable leadership message enables people to feel safe to experiment and grow.
Belief in their people
A clear recognition that their people are the thing which sets them apart:
Riverbed – “we rely on our employees’ backgrounds and beliefs to spur creativity, and enhance problem solving” Twitter – “recognise that passion and personality matter”.
Southwest Airlines have not only published a mission directed at their customers, they have created a mission for their employees: “We are committed to providing our employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, employees will be provided the same concern, respect, and caring attitude within the organisation that they are expected to share externally with every Southwest Customer.”
Open culture and dialogue
At Google you are able to ask questions directly of Larry and Sergey and, according to an employee review, at Facebook ‘the culture and dialogue is open about everything’.
Positive environment
There is a sense that people feel supported in what they do. Riverbed talks about its environment as the ‘Riverbed family’, National Innovation states that it is “a place where employees can innovate and collaborate with top professional minds”, an Edelman employee said that “you are truly made to feel valued and appreciated” and, according to an employee at Google “each employee does not mind helping the other out if they are stuck. I feel it is encouraged to reach out to others”.
So what can we learn from this in a post-SMR world?
The FCA is continuing to address conduct issues arising from failures in a firm’s culture. Whilst you may have a great project plan which will implement all of the FCA’s requirements from a process perspective, it may not actually achieve anything different unless the culture and people aspects are addressed. By taking some of these learnings into your organisation, you’re moving away from a ‘tick box’ culture to one that can truly make a lasting difference.
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