Unfortunately there are an abundance of examples of companies which focus upon and often succeed at establishing a strong corporate culture after and usually due a crisis. Samsung, Wells Fargo and Volkswagen are only recent examples. We've all learned the lesson that a crisis can bring out the best in us and inspire us to do better. Simple, not easy. The better way to learn these lessons is to pay close attention to companies who successfully navigate crisis and learn from their examples - what had they done to proactively build and maintain their company's culture to avoid or mitigate the crisis?
A company crisis might be described as a sudden or not so sudden loss of balance in a particular strategy or crucial operational department. A problem large enough to impact the entire organization leading to chaos and even perhaps overall business failure. Serious stuff. The good force which fights against the crisis menace is a strong corporate culture defined in many ways. Perhaps most simply culture is a set of moral values upon which the company rests, without fail, behavioral rules and basic attitudes of loyalty and genuine engagement among employees that are shared and discussed constantly from the very top to the bottom. It is really a moral set of guidelines sanctioned and enforced by the Board and the C Suite Executive team.
How to Establish Good Culture Before a Crisis
As mentioned above, there is strong evidence of a direct relationship between a company crisis and its culture. A weak company culture will break down easily in the wake of a serious crisis. In the end, this might just be what the company needs to face reality and put its cultural house and adjacent operational sheds and gardens in order. But it needn't be so.- Building a Corporate Culture
- Anticipating Change
- Crisis Creating Changes
- Sudden and significant growth or change in company direction can create the need to hire and replace large numbers of employees, often from different backgrounds and age groups.
- Mergers which bring many of the same issues as sudden change in employment needs.
- A new competitive product from your main rival suddenly appears.
- Natural disasters.
- Death or disability of the CEO or key members of his or her team.
- Internally, crises can arise from pure failure of leaders to communicate or permit rivalries to prevail over team work or pure all out division warfare.
- Prepare Your Culture
- Embedding the right corporate culture for successful crisis management
- Make issues management an integral part of their corporate culture
- Instill a mindset that instinctively finds the positive opportunities within negative incidents
- Always focus on finding ways to build and strengthen trust with their stakeholders
- Train and then empower their employees to act fast in times of negative incidents
- Prepare with a scalable and dynamic crisis preparedness program
- Embrace change, creating flexibility and adaptability in continuing to find ways to meet stakeholders' ever-expanding expectations
Conclusion
More and more corporate culture is viewed as one of the key factors in achieving success, and particularly competitive corporate advantage. It is perhaps the one single most unique characteristic of a company and the challenge to develop a flexible corporate culture that truly reflects your company's authenticity is an immense challenge. But the effort is well worthwhile as it paves the way for fewer and fewer crises even to the point where an event which might once have been viewed as an existential threat is simply another bump in an ever rising road.Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.