Where should ‘Culture’ sit in the Board?

Where should ‘Culture’ sit in the Board? 

Corporate culture is a cornerstone of organisational success, influencing values, beliefs, and patterns of behaviour. A well-cultivated culture is an asset to the organisation, driving long-term success. This raises a critical question. “Who within the executive team should be responsible for managing culture?” This post explores the optimal placement of cultural governance within the executive team.

I was in a webinar on transformation in organisations and a pivotal question emerged: Who should drive and lead transformation on the Board? Concerns were raised about whether the Chief Officers for Finance, Information or People could lead transformation effectively, given their inherent divisional biases. As a solution, the Chief Transformation Officer (CTO) role was proposed to maintain objectivity and impartiality.

This naturally led me to wonder about 'Culture'. Culture permeates every aspect of an organisation, influencing people, policies and processes. 

Should ‘Culture’ be managed by the board?  

Given its critical role, cultural governance must be embedded at the highest levels of the organisation rather than delegated to middle management. Here are key reasons why:

  • Strategic Alignment: Culture must align with the organisation’s strategy.
  • Resource Allocation: Executives control budget and resources
  • Leadership and Accountability: Culture is shaped from the top down.

Ideal Placement Within the Executive Team

Determining the optimal executive role for cultural governance depends on the organisation’s structure and needs.

Here are some potential placements and considerations:

  • Chief Executive Officer (CEO): While ultimately responsible for Corporate Culture, the CEO may need to delegate to ensure focused attention.
  • The Chief People Officer (CPO): Often a natural fit for cultural governance, given their responsibility for employee engagement and organisational development. However, culture extends beyond employees to include policies, procedures, brand and systems.
  • Chief Marketing Officer (CMO) or Communications Director: These roles may prioritise brand & communications over employee engagement.
  • Chief Operating Officer (COO): Oversees daily operations and can ensure cultural initiatives are integrated into processes and workflows. However, there may be concerns about the strength of support for all functions.
  • Chief Culture Officer (CCO): Similar to the CTO, some organisations have created the CCO role to focus exclusively on cultivating and maintaining organisational culture, ensuring it aligns with strategic objectives and employee engagement. Yet, is this one too many seats at the board table?

Selecting the right board role to manage culture depends on the strengths and competencies of the individuals within your executive team.

What do you think?

Who represents Culture on your board?

How does this arrangement work for your organisation?

If you would like to know more about our experience with clients as to the best fit for Culture in your Executive and organisation, then please contact our Commercial Director, Fraser at fraserjones@ndculture.com or contact us here.

Written by:
Matt Burdock

Executive Coaching, Culture Measurement, Leadership Development.

Published:
June 25, 2024