We are Homo sapiens. We have evolved. So believe the anthropologist. The study of origin and development of human societies and cultures is Anthropology. Homo is the Latin word for ‘ human’ or ‘ man’ and sapiens is derived from a Latin word that means ‘wise’ or ‘ having or demonstrating an ability to accurately assess situations or people and turn this to one’s advantage. Human species are astute. Human beings behave differently in different environments. The pattern of their behaviour on a collective basis is referred to as ‘culture’.
We are Homo sapiens. We have evolved. So believe the anthropologist. The study of origin and development of human societies and cultures is Anthropology. Homo is the Latin word for ‘ human’ or ‘ man’ and sapiens is derived from a Latin word that means ‘wise’ or ‘ having or demonstrating an ability to accurately assess situations or people and turn this to one’s advantage. Human species are astute. Human beings behave differently in different environments. The pattern of their behaviour on a collective basis is referred to as ‘culture’.
Culture is defined as the art and manifestations of human intellectual achievement, that is on a wholesome basis, regarded as the ideas, customs and local behaviour of a particular set of people or society. It is essentially a way of life that incorporates behaviour, values, beliefs and traditions, which are exhibited in everyday behaviour. Culture encompasses laws, regulations, traditions, and in a wider context can include the architectural style or even the literature relating to a particular society and its condition. If this concept and dimensions of culture are made part of the business world or more specifically institutions, it acquires the status of standards of conducting business. Culture is dependent upon espoused values and beliefs. If we narrow down this concept from the wider context of societies to organisations, entities and institutions, we have in place, business culture or to give it enhanced respectability, we call it, ‘corporate culture’. Company culture is the sheet anchor of any successful organisation. A backbone to the organisational edifice.
Culture is what motivates and retains talented employees (Thompson). Generally, the principles of corporate culture would broadly include; open communication, that is both clear and compassionate, the development of a collaborative environment amidst healthy competition, creation of feeling of togetherness, an environment of defiance with positivity in full attendance and ensuring an enabling climate for creativity to flourish. On the plane of expansive thought, it also includes, competence, commitment, constitution and character of the human resources; that is to say, synergising and aligning individual and corporate goals.
The organisational culture must give the human capital a purpose and meaning to their job/assignment; it must reflect transparency and honesty in dealing and handling any inequities. Jeff Bezos says, “Part of company culture is path dependent. It’s the lessons you learn along the way”.
Businesses and institutions too need a given set of culture for it enriches the work environment and gives a degree of vibrancy to productivity. Corporate culture is about how a company is managed and how the employees of any institution interact, not only within its own constituents, but also how it relates with the outside world. The impact of a set of corporate behavioural standards is significant, because it influences, both individuals and the entity. All practices have to remain in conformity with values.
The interaction between management and employees must be codified and encrusted within the ambit of a pre agreed set of values and behaviour; these could relate to hiring and retention of talented resources, performance standards, productivity measurements, profit and loss levels, future of the institution, etc. The core values of the organisation must remain predominant in everyday business dealings. A well thought out and designed corporate culture guarantees organisational longevity, success over competitors and a shop floor that is continually enriched by aspirational ideas and innovative work habits.
Hierarchy plays a significant role in the development of culture. If the organogram has rigid lines of reporting, it is most likely that communication would be its first victim. The top down communication method is usually stifling and workers on the lower rung of the ladder remain pulverised, and hence do not express honestly and fully. An organisation chart that has more dotted lines reporting to multiple supervisors enables more freer communication leading to expression of fresh and bold ideas and suggestions. The flexible nature of hierarchy does have potential of being abused, but its presence has greater possibility of creativity.
Management gurus have rightly observed that, if you do not develop your corporate culture, it will develop itself. Corporate culture doesn’t happen by accident, and if it does, you are taking a major risk. Culture has to be chiselled and marinated by years of undiluted application by the board, CEO and senior management; belief and attitudes of the organisation lie as a responsibility with these three pillars.
In my decades of experience with at least four large institutions, the only place I found consistency of corporate culture was BCC, because of the focus on this fundamental aspect by its President, Mr. Abedi. The leader ( Mr. Abedi) walked the talk, hence, the followers gave unflinching commitment to the five dimensional major corporate purpose, one of which was commercially not saleable to many, that is, Submission to God, but which instilled faith in the other four, of which again repugnant to the commercial minded was the noble concept of ‘service to humanity’. In the over 73 countries it operated with almost 100 nationalities working for it, the corporate culture uniquely resonated at all locations. The uniformity of layout of offices, the open plan offices, the planters, the pen stands, etc were the same, whether it was Sydney or Los Angeles . The corporate lingua was the same. Even the dress code though not officially notified was always dark color suits, and white shirts. All these factors led to a sound corporate culture.
Culture is motivational when its principles are placed on a high platform; the values are shared, and are developed by discussion and consensus. These must remain thereafter non negotiable, with no element of malleability to suit expedient business considerations, especially if the action calls for downgrading the standards.
Corporate culture also is indicative of the command and control mechanism that subsists in the management attitude. It can range from the authoritarian, despotic, dictatorial to flexible and participative. The culture for high performance requirements must remain embedded in the confines of employee focussed approach, a professional attitude that is devoid and shunned of biases, preferences and prejudices.
All CEO’s are humans. That’s my belief, having been one for nearly two decades. Exceptions are not known to me. As humans, all of them are gullible. In this state of gullibility they become weak and fall prey to the designs of the many sycophants that surround their office, whose aims are usually the promotion of nepotism and favouritism. The surrounding colleagues, not all, but not few either, make the CEO climb with ease the ladder to the “Throne of Naivety”: which bestows upon him/her unalloyed willingness to believe everything that is said. The CEO is tricked and deceived. If this situation were to relate with the hiring process; then with possibly the best of intentions, a less than skilled and less than required talented person will be hired. A single case of such hiring doesn’t impact the foundations of culture , but when this approach becomes the norm, then it rocks the entire edifice of the corporate culture; for it tends to induce resentment from the skilled and tested colleagues.
Gullibility of the boards, CEO’s and senior management is essentially the path that leads to total collapse of basic social intelligence, where these persons, individually or collectively succumb, by manipulation, into ill intentioned advice or course of action. Gullibility is a psychological condition where caution is thrown to the winds. This is one significant factor that makes the culture of an organisation murkier and dirtied.
Corporate culture is important, because if it is forgotten, there would be decline and decay in the motivation, and an unhappy human resources, leads to inability to deliver goods and services. “Culture defeats strategy every time”( Seth Godin). The need for transparency in HR policies, that cover emoluments, perks and privileges is critical for culture to flourish. Bill Gates dictum of choosing a lazy person to do hard work, because only a lazy person will find an easy way to do it, doesn’t hold much water and cannot be employed liberally. Hiring has to be of given skill and quality. HR policy also must remain intolerant to issues of integrity at all levels of staff. Culture must promote camaraderie, encourage continued education and training, acquisition of new skill sets, and give opportunity for innovation and creativity.
In an organisation who should be the custodian of company culture? In my opinion, based on the universal truth of adages like, ice melts from the top and the fish rots from the head, the responsibility for creating and maintaining the corporate culture must remain with the duo of the Board of Directors and the Chief Executive Officer, alongside the senior management team. An appropriate framing is, “Leaders create culture. Culture drives behaviour. Behaviour produces results”. Culture must be visible through social interaction and work environment.
The presence of respect that pervades an organisation is a reflection of its culture. In this context, the issue of anger management is of criticality. The need for controlling emotional outbursts cannot be underscored. Anybody, and especially the supervisors, if they are not in control of their emotions and use of language are explosive bombs with nuclear potential, which serve as land mines, any person that comes into contact with such personnel, is likely to tip over the inflated egos, that will set the culture tower into an inextinguishable inferno. Anger management that is done proactively reduces the chances of health disorders like BP issues, acidity, insomnia, mental health and anxiety. Any type of overwhelming toxicities can endanger the cultural settings of the entity.
For a magical corporate culture, there is no need for a magical formula, the only requirement is to treat employees alike with no distinction, except of performance. The less performing shouldn’t be thrown out either. A good organisation like a good society must take both the powerful and the weak together . The exception to this general rule is lack of integrity and honesty. Remarked, Louis Gerstner, culture isn’t one aspect of the game, it is the game. Corporate culture represents the soul of the organisation.
The writer is a senior banker and a freelance columnist
