Raya Kathina – 100001851 – MBA SRH Berlin University – Winter Semester 2024
Summary of Driving Corporate Culture from The Top
The documents shows interesting perspectives on the most important role of
corporate leadership, particularly boards, in cultivating and sustaining a
company’s culture. Some interesting things I got are below listed.
Culture can be seen as a strategic asset. Based on the report, corporate culture as a
subtle yet potent factor driving organizational performance, impacting areas such
as risk management, strategic cohesion, employee engagement, and ethical
conduct. When aligned with business strategy, culture becomes a unique
competitive advantage. The culture differences in my opinion can be an asset if the
company wants to open the branch outside the home country base. The people who
is appointed, is already known the culture to enter market.
A strong culture is established at the highest levels, with boards and executives
setting the tone. Antony Jenkins, former CEO of Barclays, notes that board
member behaviors significantly make a shape of organization, as actions— even
small acts like attentiveness in meetings—are observed and modelled across the
company. The top level management is the center, all workers look upon them,
thus they have to radiate it.The report also shows that culture should be a
continuous topic, not a once-a-year agenda item. Incorporating cultural
considerations into strategy, risk management, and CEO succession planning are
advised, as these areas shape the organization’s long-term direction and
resilience.
Risk management expert James Lam highlights the link between culture and risk,
explaining that a strong culture naturally promotes risk awareness, even without
explicit policies. A weak culture, on the other hand, can encourage risky
behaviours with negative consequences. It is important both the recruiter and the
employee to understand the working culture at the company first before signing a
contract to avoid some risks regarding long time work.
Signs of a strong culture include low turnover, high employee satisfaction, and
alignment with company values. Warning signs include high turnover, distrust, low
morale, and frequent compliance issues. In this issue, many companies in
Indonesia, especially small medium companies blame the employees for the
turnover.
Later on, significant moments, such as changes in leadership or strategic shifts,
often require a reassessment of corporate culture. The boards should be
especially attentive during these times to ensure culture remains aligned with
organizational objectives. Do it smoothly or soft landing.
Tools for Cultural Monitoring is also reccomended. Recommended tools include
dashboards, employee surveys, and internal audits, which help the boards track
cultural health and highlight areas that need focus. This can be integrated with
technology and trusted partnerships.
Jenkins also recommends defining the desired culture, aligning processes,
embedding cultural considerations into decision-making, and measuring
adherence to foster effective change. Authentic commitment from top leadership
is essential for real cultural alignment.
In summary, the report emphasizes that establishing a strong corporate culture
from the top is both feasible and essential for aligning organizational values with
strategic goals, ultimately creating a resilient, ethical, and adaptable corporate
environment. More innovation can be gained from diversity. Thus, it is a privilege to
be the top who have juniors from abroad.
