Organizational culture plays an extremely important role in the success of a company, influencing the way people interact, make decisions and align themselves with the corporate purpose and objectives.

We know that there is no strategy that can resist a poorly managed culture. However, we still find the top leadership of some organizations delegating responsibility for monitoring, managing and evolving the various cultural layers to other areas.

In this article, we'll talk about the importance of the role of Top Leadership in managing Organizational Culture and present some strategies for cultivating a culture that drives business success.

Top Leadership as Cultural Architect

Organizational culture is centered on the values experienced in the company and is made up of various layers - beliefs, norms, habits and practices - that guide people's behavior within an organization. An important aspect that also defines a culture is everything that top management tolerates in the organizational environment.

A well-managed organizational culture aligned with the company's mission, vision and values strengthens bonds and creates a sense of identity, purpose and belonging among employees, as well as stimulating commitment, collaboration, creativity and excellence. On the other hand, the absence of effective management of cultural components can lead to conflicts, demotivation, resistance, turnover and loss of competitiveness.

A lot is said about the role of culture guardian that senior management must play, but this does not imply that culture should be seen as something static and unchanging, but rather a strategic resource that can be managed, adapted and transformed according to the needs and objectives of the business.

It's important for leaders to bear in mind that what has brought them success so far has its value, but that they must also remember that yesterday's success does not guarantee tomorrow's success. In other words: flexibility and cultural adaptation are key.

I believe that in order to build and maintain a successful organizational culture, the top leadership must understand and assume its role as cultural architect. In other words, they must define, communicate, model and reinforce the desired cultural elements, as well as monitor, evaluate and correct deviations and inconsistencies.

When carrying out cultural design, the top leadership can and should explore culture management in a collaborative and co-participatory way, talking directly with the teams about each relevant point in the organization's various cultural layers.  

In doing so, it treats culture as an instrument of engagement and building psychological security for the people who work with the organization.

Diagnosis - The Starting Point

Various surveys and studies show that we don't always have a single culture within the same organization, and highlight the challenge of managing these other cultural nuclei that form over time as a result of its growth and geographical expansion.

This lack of cohesion and consistency is called cultural entropy and can be observed when organizational values, norms and practices become less consistent and aligned, resulting in a loss of cultural identity, with an impact on team morale, a reduction in organizational effectiveness and a loss of focus on business objectives.

In this way, it is critical that senior leadership makes a diagnosis of possible cultural entropies, using specific instruments for this purpose. With a clear view of the situation, it is possible to understand and identify actions that contribute to strengthening cultural principles. These actions can range from leadership development, employee engagement programs to communication strategies, among other interventions.

Lived Values, not just Declared Values

One of the main ways to mitigate cultural entropy is to reinforce its core, i.e. your organizational values. And it's not enough for top management to be the first to experience and demonstrate the values and behaviors expected in their interpersonal relationships. It is important to develop leaders who can unify and inspire people around a shared vision.

In addition, I would highlight the importance of promoting and properly communicating values that are translated into observable behaviors and used in decision-making processes as guides that allow an environment of psychological security to emerge in times of uncertainty.

It is also of great value for senior management to make sure that people are experiencing these values in their day-to-day work in the organization. To this end, it is essential to provide a way for people to regularly communicate how these values are being translated into their experiences with the company and to collaborate with suggestions on how teams can experience the company's values even more within the organizational environment.

There are countless ways of capturing this information, ranging from satisfaction surveys, climate surveys, celebratory events, and the inclusion of value-oriented projects in strategic planning, among others. Regardless, this is a very valuable agenda for the top leadership of an organization.

Culture and Diversity

One of the most critical moments for the management of organizational culture is the selection process, when it is decided who joins the organization. At this time, it is common to talk about cultural fit - compatibility between the values and behaviours of the candidates and those of the organization, which for many defines their likelihood of future success in the organization, both in the performance of their duties and in collaborating to preserve cultural elements.

However, this concept can be limiting and exclusionary, as it can lead to homogenization and stagnation in the organizational culture. It is therefore important to also consider the concept of Culture Add, i.e. the ability of new employees to add value and diversity to the organizational culture, bringing new perspectives, ideas, solutions and challenges.

Of course, there must be a convergence of values, which is the core of the organizational culture, but it is essential that the other layers are flexible and adaptable to changes in the internal and external environment.

I believe that organizational culture should be managed by senior management in a strategic, dynamic and participative way, always seeking a balance between preservation and renewal. Leadership and employees must act together as architects and cultural agents, creating and maintaining a strong, aligned, diverse and innovative organizational culture.

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