A Poster Is NOT Your Company's Culture

Recently I've visited several business offices with posters in the reception area espousing their mission, vision, values, commitments to excellence...and lots of other very interesting and important words. I can tell you first hand that none of these companies come anywhere close to adhering to the words on these posters and I find myself wondering why companies that have the poorest commitment to employee engagement and/or customer satisfaction want to promote these values to the public. Its as if they need constant reminders to treat people decently. Unfortunate!

I think back to Enron scandal in 2001. They had a typical values statement and loved it so much they chiseled in marble in the main lobby. It read:

• Integrity

• Communication

• Respect

• Excellence

However what was really going on included deception, extreme fraud, amongst many other crimes, Enron filed for bankruptcy, thousands of people lost their jobs and hundreds of millions in investments. Ultimately the leaders were sentenced to prison. So much for the importance of these core values chiseled in the wall.

You're not going to find these empty statements on the walls of companies that truly value their employees and customers like Zappos, Nordstrom and Southwest Airlines. The values of the company are infused into their business practices and policies - they're not an after-thought or a box to tick. The leaders and employees live by these values and make decisions based on these. Its another reminder that doing good and doing well are not mutually exclusive, but are actually mutually beneficial.

Employees who rate their organization’s culture as "Good" or "Excellent" are a staggering 790% more likely to feel satisfied at work. Conversely, those who perceive the culture as "Poor" or "Terrible" are 83% more likely to have one foot out the door, actively seeking new opportunities - or worse, just doing the bare minimum to get by and infecting others with negative energy that will quickly spread through the office.

Imagine the possibilities if you could transform your workplace culture into one that fosters positivity, collaboration, and employee well-being!

Creating a thriving culture isn’t just a feel-good initiative; it’s a strategic move that pays dividends in profitability, revenue generation, productivity, job satisfaction, and employee retention.

Happy employees aren’t just productive employees. They’re your company’s biggest advocates, your PR department, and brand ambassadors! So, ask yourself: What could a 790% boost in employee satisfaction and an 83% reduction in turnover mean for your organization? How could this help grow your business by both gaining new customers and deepening the relationships with existing customers?

Company culture is the game-changer! It’s the secret sauce that transforms a job into a fulfilling career or a worker into an employee advocate. So, what defines a good culture? Many experts would share that there are four core elements that define a good culture: Strong leadership, Shared norms, values, and behaviors, Respecting and valuing differences, and a Customer-focused approach.

Many leaders would be quick to say that those key element are strong at their organization and can reel off a few activities that are representative of these. However, there are some quick "tests" to see if these elements and values truly hold water or are just platitudes defined at the top and put on posters as opposed to infused to day to day decision-making and operations throughout he organization.

1. Analyze ESG Public Disclosures/Reports and Ratings and Rankings

If a company truly is focused on being true to their mission/vision/values they will have an ESG strategy (not just focused on sustainability to tick that box) and will be tracking data across all ESG areas. To learn more about the execution of their strategy you can look at:

• Comprehensive Reporting: Look for detailed ESG or sustainability reports that go beyond surface-level information. Genuine companies will provide in-depth data, goals, progress, and future plans.

• Third-Party Audits: Check if the company's ESG reports are verified by third-party auditors. Independent verification adds credibility to their claims.

• Alignment with Standards: See if the company aligns its reporting with recognized frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or the Task Force on Climate-related Financial Disclosures (TCFD).

• Independent Ratings: Consult ESG ratings from independent agencies such as MSCI, Sustainalytics, and CDP. These organizations evaluate companies based on their ESG performance.

• Comparative Performance: Compare the company's ratings with its industry peers. Consistently high ratings suggest a genuine commitment to ESG.

2. Examine Company Policies and Practices

• Policy Integration: Check if ESG principles are integrated into the company’s core policies and practices. This includes environmental policies, social responsibility guidelines, and governance frameworks.

• Management Involvement: Look for evidence of ESG initiatives being championed by senior management and integrated into the company’s strategic goals.

• Employee Engagement: Assess how the company involves its employees in ESG efforts. Genuine companies will have programs to educate and engage their workforce in sustainability practices.

3. Review ESG Initiatives and Impact

• Tangible Initiatives: Investigate specific initiatives the company has undertaken. Genuine efforts will have clear, measurable objectives and outcomes.

• Long-Term Projects: Companies with a genuine focus on ESG invest in long-term projects that have significant impact rather than short-term, superficial initiatives.

• Case Studies and Examples: Look for case studies or examples of how the company’s ESG initiatives have made a real-world impact.

4. Stakeholder Feedback

• Customer and Community Feedback: Explore feedback from customers, communities, and other stakeholders about the company’s ESG performance. Genuine companies will have positive testimonials and evidence of meaningful engagement.

• Employee Reviews: Check employee reviews on platforms like Glassdoor for insights into the company’s internal culture and commitment to ESG values.

5. Media and Public Perception

• Media Coverage: Analyze media coverage of the company’s ESG efforts. Positive stories from reputable sources indicate genuine commitment, while frequent negative reports may suggest box-ticking.

• Public Recognition: Look for awards or recognitions from reputable organizations for their ESG efforts. These accolades are often a sign of genuine commitment.

6. Legal and Regulatory Compliance

• Compliance Records: Check for any legal issues or regulatory non-compliance related to ESG practices. Genuine companies will have a clean record and proactive measures to stay compliant.

• Transparency: Genuine companies will be transparent about their challenges and areas for improvement, rather than just showcasing successes.

By reviewing these elements you can gain a comprehensive understanding, as a leader, do you really care about your culture or are you a tick-box culture?

A tick-box culture occurs when leaders are most concerned with following rules and showcasing achievements on paper instead of in practice. They ensure written requirements are met so that the company can say it is fully compliant when they need to disclose or are questioned by stakeholders.

So if you're compliant, why is that a problem?

At first glance a tick-box culture may sound fine as all the requirements are being met. However, beneath the “ticked boxes”, you may find that genuine engagement with the rules simply isn’t there. Rules were created to solve an underlying issue, and they nearly always need reporting on paper to check who’s following them. Tick-box culture means focusing on getting the reporting right and not actually addressing the underlying issue. In doing so, you prioritize rules and regulations over principles and people.

Look at the metrics that can truly tell you how you're doing in this area. How is your employee retention, acquisition, and tenure. If you're having issues attracting and keeping employees, there's an issue with how the company values employees. What do your pulse surveys tell you? How often does the senior leadership connect with front line workers and listen to their thoughts and feedback? How is your customer growth, engagement and reputation? Are your processes and policies truly customer-centric or do you just say that you are? If you say that sustainability is important, would that be obvious by seeing recycling bins, no plastic, solar panels on the roof, limited paper usage, etc? Or do you host an annual park/beach cleanup and think that makes you an environmentally-conscious business (I'm not making this up - I actually heard this from a leader!) In 2024, it takes much more to promote sustainability.

As a leader, you can talk about your company’s values and culture until you’re blue in the face. You can put up the most beautiful posters in your break room, reception and to share throughout your public communications and even carve your values into the cornerstone of your building. But none of that will make the slightest bit of difference if your words don’t match your actions. It’s not what you say, it’s what you do as the real value lies in operationalizing these values and using them as guideposts to run your business and encouraging the same from everyone across all levels of the business.

Actions speak louder than words - change your actions, not the poster on the wall.