​​How Leaders Can Strategise Their Board Culture​

The UK Corporate Governance Code states: “The board should establish the company’s purpose, values and strategy, and satisfy itself that these and its culture are all aligned. All directors must act with integrity, lead by example and promote the desired culture”. As organisations 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 organisations 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 organisations 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 behaviours and values advocated by the board are embodied throughout the entire organisation. This is crucial for creating a cohesive and purpose-driven culture. 

Challenges in cultural changes 

Transforming an organisation’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 strategise 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.  

Operationalising board culture is a multifaceted effort that requires a holistic and proactive approach. Leaders must prioritise cultural alignment, ensure values and behaviours are lived throughout the organisation, 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.