Sustainable business growth has never been more challenging in an evolving landscape of (do I dare say it), the uncertainty of Brexit, the aftermath of various financial scandals such as Enron and LIBOR, consumer/ shareholder activism, mistrust and increasing expectations, the increased visibility and relevance of diversity in all its forms; then we have consolidations taking place, and of course the advancement of technology with artificial intelligence and machine learning changing not only the way we go about doing the work but how we think about work. Contributor Tali Shlomo, People Engagement Director – FCIPD.

So, what role does workplace culture have when leaders are faced with all the above and so much more. Culture may be defined in various ways, as an HR Professional we typically describe workplace culture on how things are done here as opposed to what we do which is our organizational purpose. Culture is the behaviours we live and display in our workplace setting driving the decisions we make, the way we lead and support our colleagues and how we influence and collaborate our colleagues and stakeholders.

The FCA’s approach to culture is defined as four areas: Purpose, Leadership, Approach to rewarding and managing people and Governance. In this context it would be useful to remind ourselves of some of the recent changes that have taken place. In my sector regulation continues to evolve the banking and insurance professions with the Financial Conduct Authority’s – Senior Managers and Certification Regime aiming to: “reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence” 

Encourage a culture of staff at all levels taking personal responsibility for their actions and; make sure firms and staff clearly understand and can demonstrate where responsibility lies’ in addition, the UK’s premium listed boards are bound on a comply or explain basis, by  the recent UK Corporate Governance Code (July 2018) which states as  one of its five principles ‘…..all directors must act with integrity, led by example and promote the desired culture’ and ‘ workforce policies and practices are consistent with the company’s values and support its long term sustainable success’.

There has also been pressure on boards to increase the focus on diversity and inclusion which is centred around the principles of workplace culture, enabling business growth to flourish by breaking down the barrier of ‘groupthink’. The Lord Davies review provided clear recommendations to increase female representation on Boards which was later build on with the Hampton- Alexander review to increase gender representation to at least 33% by 2020.

The Parker review also provides clear recommendation to improve the ethnic and cultural diversity of UK Boards to better reflect their employee base and the communities they serve.

The role of Human Resource Directors has never been more critical as we move away from the traditional partnering to one of influencing and shaping the organisational culture collaboration with the Board, the leadership team, colleagues and stakeholders. HR is no longer a transactional movement of people, it is a business function authentically partnering with the leadership team to create a culture which enables a sustainable strategy for business growth.

In the fight for attracting talent, in the climate of retaining talent and the urgent need to address both the board room and leadership team composition reflecting our diverse society, as we tackle the gender pay and soon to be the ethnicity pay gap, businesses need  HR to lead the way as never before. An exciting time to really shape and influence the organisations culture enabling business growth leveraging people’s talent. 

How often does a candidate ask during the interview process, “what is the culture like here”? In response, do we trot out a few bland platitudes? Or can we portray our organisational culture with passion, belief and meaning? We all have our own personal values which help us navigate through our daily challenges.  These provide us with a personal compass and (like DNA) are unique to every one of us. They define us as individuals.

Why should an organisation, which is in essence a collection of people, be any different? Organisations are in equal need of a common purpose, and in need of ways to navigate behaviours. Great values steer and define us as employers whilst respecting our individual identities, styles and differences.

If an organisational culture is defined, in part, by its values and behaviours, shouldn’t we pay close attention to them?  Investing time to explore, define and continually improve our workplace culture requires authenticity, creating a direct connection between words and actions. The prize is a shared understanding of the behaviours our colleagues and peers will exhibit in their daily interactions. And which will be experienced by the outside world whenever we connect and make contact with them.

So are you still wondering why bother with organisational values? Consider the multigenerational workforce, the diverse and inclusive environment we strive to create and maintain, the fast-changing landscape of the markets which we serve, the increasingly ambitious performance targets to be delivered year on year, the need to grow professionally and personally as individuals.

How can we connect with the value system of an organisation if the behaviours don’t mirror the values, and if the behaviours don’t mirror the culture?  The challenge is to respect our workforce similarities and differences, to be honest in our behaviour, to engage rather than impose, to lead by example and to create a platform that “brings to life” the fine words. 

Employees should be engaged in the formation of the values, as well as the rollout. Leave them out of the journey observing from the side-lines will result in isolation, fragmentation, a drop-in motivation levels, and staff that are both uninspired and uninspiring group.

As values take effect, and changed behaviours are being displayed, so is born a new and revitalised culture; a culture which is reflective of your purpose, strategic mission and the respect for your people who will collectively be driven to deliver positive outcomes.

So, when a candidate next asks “what is the culture like here?”, we are no longer reduced to   floundering. On the contrary, our eyes should light up at the chance to respond and showcase our organisational effectiveness.