Creating a living culture: the challenges for business leaders

One of the leadership responsibilities of the board of directors is to establish a statement of values and to ensure that these guiding principles become a basis for action throughout the organization. Where companies do not have a statement of values, or where the values are not accepted, there is a real danger that company staff will act in their own interests, not in the interests of the stakeholders they are meant to serve. At this point they may put at risk the reputation of the whole organization. But how can the board of a large diversified international company hope to establish a culture with common values which will guide the behavior of employees around the world? In this article Jan Thornbury presents the theory and practice which she helped to develop when a number of professional partnerships came together to form KPMG, and which she now uses in working with other organizations. She explains how values are connected with basic beliefs, how they can affect behavior and how they need to be supported by management systems. Then she outlines a process for changing a company culture by analyzing the present values and behaviors, defining the desired culture, implementing an action plan, and measuring the results. Finally she examines the crucial role of the executive team in leading the change program.