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Leadership Insights

​​How Leaders Can Strategize Their Board Culture​

3 min read

A company’s culture is a prominent part of its corporate makeup, from both an internal and external lens. An effective and inclusive culture is a hugely valuable asset, but it needs to be driven from the top.

Forbes states: “The board of directors plays a pivotal role in ensuring the success and longevity of an organization. More than just attending meetings, a well-functioning board is deeply involved in shaping the organization’s strategy, overseeing financial health and ensuring legal compliance." As organizations strive to adapt to complex challenges and seize new opportunities in an ever-changing commercial environment, we explore the importance of a well-defined culture led by the board. 

Cultural consideration 

The importance of the board in establishing culture and purpose has been reinforced by the emphasis on environment, social and governance (ESG) factors.  

The “S” in ESG, which encompasses aspects such as diversity, equity and inclusion, has received particular attention. There is now a leaning for more organizations to respond to social issues, which extends to their board culture - these expectations are continually evolving, particularly in response to societal and generational shifts.  

Younger generations are demanding greater transparency and accountability from organizations on issues such as environmental, sustainability and ethical governance. Meeting these expectations requires boards to be agile and responsive, continuously assessing and adapting their culture to align with changing societal demands. 

One of the primary responsibilities of leaders is making sure the behaviors and values advocated by the board are embodied throughout the entire organization. This is crucial for creating a cohesive and purpose-driven culture. 

A ‘top-down’ culture not only enhances organizational reputation, acting as a differentiator to competitors, but also attracts market leading talent and cultivates a sense of belonging among employees.

Challenges in cultural changes 

Transforming an organization’s culture is a complex and ongoing process and not without challenges. Companies can face resistance from employees who are accustomed to existing ways of working. Overcoming this pushback requires a thoughtful and strategic approach, including clear communication, training and support for employees as they understand and adapt to new cultural norms. 

The importance of succession planning 

Succession planning is a critical consideration for boards as they strategize their culture. Identifying potential leadership gaps and developing a pipeline of leaders with the right ‘fit’ to carry forward the board culture is essential for its longevity and success.  

The role of Chief People Officers (CPOs) 

With expertise including organizational effectiveness, change experience, right-sizing, scaling and modernizing, CPOs are progressively in demand for their skills in driving cultural alignment. CPOs can also integrate the company’s values into promotion processes, job descriptions and performance evaluations.

In doing so, firms can ensure their values are not just words on a wall, but instead are actively practiced by all employees.

Operationalizing board culture is a multifaceted effort that requires a holistic and proactive approach. Leaders must prioritize cultural alignment, ensure values and behaviors are lived throughout the organization, and address challenges with thoughtful strategies.  

Contact Odgers Berndtson’s People & Culture Practice to strategically align your board culture, develop world-class talent, and drive lasting success. 

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