When a financial protocol is breached in an organisation, it is highly likely actions will follow immediately. In most organisations, people are clear about what constitutes appropriate behaviour when it comes to finances. People are also clear that there are immediate consequences for failing to comply with proper financial procedures.
It’s interesting that one never hears people complaining (maybe other than the finance people) about the need to comply with financial procedures. It’s taken as a given that rules and procedures apply, and people must conform to these. From time to time, people may need to be reminded or updated on what’s required, but compliance is rarely an issue.
When it comes to organisational culture, things can be very different however.
Most managers I work with admit to the fact that their people display behaviours they (the managers) think are inappropriate. More often than not, these behaviours are left unchallenged.
Ironically, this happens in organisations that have Values Statements which the leadership claims are important.
When I work with organisations, an integral part of my early work involves working with the leadership team. It’s not uncommon for some of the team to be a little wary, and perhaps cynical about the value of focusing on the organisation’s culture. Typically, if there are any doubters, the CFO or equivalent will be leading the pack. The reasons for this are not hard to find.
Finance matters are tangible, cultural issue are not. Financial issues are relatively easy to track, cultural issues are not. When financial procedures are breached, there are procedures that kick in - when culture goes awry, there are no conventional procedures.
A clear implication that emerges from these issues is that leadership teams need to understand culture and develop protocols to manage and sustain it.
In the absence of a management team doing this, staff undertake this anyway. This is achieved by observing what is allowed to occur without there being any consequences.
Let me explain.
If people treat each other with a lack of respect, and there are no consequences for that behaviour, then we have a culture that allows this.
If customers are treated badly and there are no consequences, then that’s the culture in relation to customers.
If people speak about other departments in disparaging terms, and there are no consequences for such negativity, then the culture encourages this.
Cultures are self sustaining largely through what is left unchecked.
If poor financial ethics are allowed without consequence, then poor financial ethics will continue.
If poor cultural attributes are allowed to continue, then that’s what will prevail. It’s time for managers to get clear on the culture required for the organisation’s future success - and to make that non-negotiable for everyone.
It’s interesting that one never hears people complaining (maybe other than the finance people) about the need to comply with financial procedures. It’s taken as a given that rules and procedures apply, and people must conform to these. From time to time, people may need to be reminded or updated on what’s required, but compliance is rarely an issue.
When it comes to organisational culture, things can be very different however.
Most managers I work with admit to the fact that their people display behaviours they (the managers) think are inappropriate. More often than not, these behaviours are left unchallenged.
Ironically, this happens in organisations that have Values Statements which the leadership claims are important.
When I work with organisations, an integral part of my early work involves working with the leadership team. It’s not uncommon for some of the team to be a little wary, and perhaps cynical about the value of focusing on the organisation’s culture. Typically, if there are any doubters, the CFO or equivalent will be leading the pack. The reasons for this are not hard to find.
Finance matters are tangible, cultural issue are not. Financial issues are relatively easy to track, cultural issues are not. When financial procedures are breached, there are procedures that kick in - when culture goes awry, there are no conventional procedures.
A clear implication that emerges from these issues is that leadership teams need to understand culture and develop protocols to manage and sustain it.
In the absence of a management team doing this, staff undertake this anyway. This is achieved by observing what is allowed to occur without there being any consequences.
Let me explain.
If people treat each other with a lack of respect, and there are no consequences for that behaviour, then we have a culture that allows this.
If customers are treated badly and there are no consequences, then that’s the culture in relation to customers.
If people speak about other departments in disparaging terms, and there are no consequences for such negativity, then the culture encourages this.
Cultures are self sustaining largely through what is left unchecked.
If poor financial ethics are allowed without consequence, then poor financial ethics will continue.
If poor cultural attributes are allowed to continue, then that’s what will prevail. It’s time for managers to get clear on the culture required for the organisation’s future success - and to make that non-negotiable for everyone.
