‘Culture starts at the top’ and should not be left solely to the HR department

Sue Jauncey

Recent call by the head of ASIC, Greg Medcraft, for boards and CEOs of financial institutions to take responsibility for, and be in charge of an organisation’s culture is a welcome addition to the current debate on corporate behavior, according to corporate cultural change specialist Pulse Australasia.

According to Pulse Australasia’s founder and director, Sue Jauncey, unstated but implicit in Mr. Medcraft’s comment, where he described “culture as the new black” is the notion that culture is too important to simply be left as a project for the HR department generally.

Culture needs to be seen as a key strategic imperative for the CEO and Executive team to own and intentionally develop, she says.

“This is not to denigrate the role or importance of HR Directors and their departments but we 100% agree with Mr. Medcraft’s observation that the ‘tone from the top’, as he calls it, is absolutely critical in developing an intentional culture for an organisation.

“Unfortunately over the past two decades one of the most prevalent organisation management tools in this field has been and still is the staff engagement survey.

“The faith corporate leaders and managers have in this tool is misplaced and misguided and has, we believe, led to a state of play in corporate Australia and internationally where a sense of entitlement among employees has unwittingly been fostered at the expense of achieving a desired cultural outcome for the organisation and its customers.

“Engagement surveys tend to result in a list of demands and desires expressed by individuals. They create a self-focus and a culture of self-entitlement, not to mention false expectations and unmet aspirations.

“The theory and technology exists now for corporate leaders to develop an agreed culture. The management paradigm needs to be changed from seeking to achieve ‘happy employees’ at all costs to one where there is a focus on collective achievement, which studies have proved provide greater productivity, staff satisfaction, self-worth and retention alongside better bottom lines for all concerned.

“Achieving an intentional corporate culture starts at the top and for it to be maintained it must be an ongoing strategic focus from the top.

“Congratulations to Mr. Medcraft for bringing attention to this reality. It is imperative the boards receive significant cultural metrics from the CEO and Executive team that allow them to fulfil with confidence their cultural fiduciary and governing responsibilities

“Changing the culture of an organization is not rocket science but I am afraid most organisations are currently riding the wrong rocket,” said Ms. Jauncey.