‘The companies running back to 2019 won’t be around for long’

Nearly two-thirds of the world’s most admired company (WMAC) executives attribute 30% or more of their company’s market value to their company culture, and one-third attribute 50% or more.

Is having a strong company culture nice to have or essential to success?

That’s what Korn Ferry asked the leaders in Fortune’s World’s Most Admired Companies (WMACs) list.

Korn Ferry surveyed over 500 senior executives from WMACs and peer companies to understand the impact culture has had on their success.

WMAC executives said culture is the most underrated company success factor.

And over a third say it’s the top determinant of long-term success.

1: Everything they do is aligned with the culture they want to create. They rely on various culture change levers, from hiring decisions to corporate communications to performance evaluations. It’s what Korn Ferry calls ‘Culture 360’.

2: WMAC companies expect every leader to be a ‘chief culture officer’ by modelling the culture in their behaviour and coaching others to follow suit. 84% of respondents say leadership role modelling is crucial for shaping organisational culture.

3: They don’t wait for new mindsets and behaviours to catch on to traditional cascades. To accelerate change, they lead purposefully, engage early influencers at all levels, and empower self-organising teams.

One of the most significant benefits of making everyone a chief culture officer is the ‘see something, say something’ effect it generates.

When everyone’s responsible for culture, people are more likely to speak up if things aren’t working.

It’s one of the best ways to catch and deal with problems early before they derail your strategy or expose you to risk.

You can download the full Korn Ferry report here.

Although it might be tempting sometimes for boards and senior management to try and turn back the cultural clock to revive ‘old’ ways of working, this shouldn’t be seen as an option.

Randy Marmon, vice chair in professional search at Korn Ferry, says, “The companies that are running back to 2019 won’t be around for long.”

To learn more about implementing a great company culture, download the course brochure below for the Diploma in ESG.