Why Company Culture Belongs To CEOs, Not HR
In today’s high-stakes business environment, CEOs cannot afford to underestimate the significance of company culture. As a strategic asset and competitive differentiator, it is imperative for leaders to recognize that culture determines how work gets done, how decisions are made, and how people interact.
While some companies may delegate cultural initiatives to their HR department, this approach often falls short. Culture is not something you can simply “build once and forget.” Rather, it requires continuous alignment, communication, and intentional leadership from the top down.
The data speaks for itself: only 33% of employees are truly engaged at work, according to a Gallup poll. It’s clear that the current approach is failing. This crisis in engagement is not solely the responsibility of HR; rather, CEOs must take ownership of shaping their organization’s culture.
Some leaders may be guilty of “Ostrich Leadership,” deliberately avoiding difficult cultural conversations and surrounding themselves with yes-people instead of engaging with the workforce directly. However, this avoidance only leads to a Potemkin village of corporate culture – beautiful on the surface but hollow at its core.
In contrast, CEOs like Satya Nadella have demonstrated that prioritizing culture can lead to remarkable success. Under his leadership, Microsoft transformed from a “know-it-all” to a “learn-it-all” mentality, resulting in an astonishing 1,000% stock growth since he took the role in 2014 and a market value of $3 trillion.
Microsoft’s story serves as a powerful reminder that CEOs must not only recognize culture as their responsibility but also commit to revitalizing it. This transformation begins with empathy, learning, and growth – all values that Nadella has championed throughout his tenure.
As the chief culture officer, the CEO sets the organizational tone through their beliefs and actions. By acknowledging this crucial role, leaders can create a thriving, adaptive, and genuinely engaged organization that will be reflected in the enduring value and resilience of the company.
In conclusion, CEOs cannot afford to underestimate the impact of company culture on their organization’s performance. Culture is not something that can be delegated; it requires intentional leadership from the top down.
Source: www.forbes.com