THE CORE CULTURAL TRAIT AN ORGANIZATION NEEDS

Mind you, it’s not a trait if it comes down to a value that’s professed and publicized but never practiced. Something that’s written everywhere across the premises of an organization to give the impression that it means everything to it, means nothing if it doesn’t qualify to be a characteristic, for characteristics are practically demonstrated.

All those statements of vision, mission, the codes of conduct, values are nothing if these don’t reflect substantively in the affairs of the entity. Previously, good for theory, they do not mean anything on paper anymore since it’s now easier to practically experience what an organization stands for, or if it stands for nothing.

Gone is the era when customers or other stakeholders sitting outside will be amused by the entity’s fancy values or its self-glorifying vision or mission statements churned out with the help of a management theorist. The entities are now gauged by how much of these statements they live by.

Furthermore, even entities that adhere to industry’s best practices or standards and even showcase this conformance through third party attestation or through awards for instance are evaluated by their covert and overt actions and their implications on the stakeholders and the entity’s operating environment. Stakeholders do understand the business relationship various third-party assessors have with the entities.

But there’s an even bigger problem with these pompous statements. These statements do not even represent any value for the entity itself. Unless of course, these are hardwired in the entities processes in such a manner that these are reflected in each transaction the entity has with all its stakeholders.

Walking the talk is necessary when it comes to mission and values statements and codes of conduct.

Merely having written statements and codes cannot:

• Sustain Businesses.
• Grow Businesses.
• Render the entity a good corporate citizen.
• Attract customer loyalty.
• Help attain goodwill.

This is also because even the most elaborately written guidelines in an entity, its policies and procedures need compliance to be of use. Simply being present and written doesn’t mean that these are implemented or in effect. And well, that’s also how entities ensure (partly) that we the auditors remain relevant!

Let’s now check out the signs that make statements of values, mission and codes of conduct (“virtues”) irrelevant and then solve the riddle; what’s needed (the one vice!) for these all to work. Surprised? Don’t be, for I will cover why it should be called a “vice”.

The list is inconclusive!

These traits do not become irrelevant overnight, it’s with sheer hard work over years that the people who make up the control environment (executive management primarily) instill this decay in the overall organizational culture. The management style encouraged is no offence be reported or no offence is big enough to be reported.

The executive management in such a scenario is hell bent on muzzling all voices of irregularities, truth, dissent and even differences of opinion. They ensure that every issue that surfaces is managed through something like for instance making committees, shooting down the messenger, delaying action or making illusions of action.

However, there’s one trait that’s influential enough to ensure that all these virtues do not become irrelevant and fade away. Since these virtues look good in theory and its hard for managements to practice these because of expediency, I classify this one core cultural trait a “vice”.

This core cultural trait is ACCOUNTABILITY.

Accountability for everything and everyone. Accountability for actions and inaction. Accountability at all hierarchical levels; lower, middle and executive management. Accountability of those charged with governance.

It’s this one trait that ensures:

• Desired conduct is adhered to, and non-adherence is identified and penalized.
• Compliant behavior is always substantiated, and non-compliant behavior is called out and punished.
• Values are understood and reflected in each transaction, violations are immediately scrutinized, and administrative actions are taken.
• Code of conduct is fully ingrained within the culture and breaches are swiftly acted upon with adequate administrative implications.
• Asking the right questions at the right time and from the right people.
• Everyone is answerable for decisions made and actions taken or not.

It’s also this one trait that we seek grossly lacking in most organizational cultures that end up in news for all the wrong reasons. Thus, the regulators need to hold boards accountable. The boards need to hold executive management accountable and executive management needs to hold middle and lower managements accountable.

It’s true that accountability might not help change people who have questionable integrity, are dishonest, exhibit unethical behavior or have no principles to stand on. But it can for sure help identify offenders at the right time so that these could be made an example of if the entity is to survive.

Else, oblivion or eventually wrapping up is a foregone conclusion!