Leading Organisational Culture is a key governance responsibility for Boards and Management Committees.
Organisational culture is a cornerstone of a successful organisation, and governing bodies need to be setting the tone from the top. While Vision and Purpose guide an organisation’s strategic direction, it is culture that determines how these high level aspirations translate into the day-to-day experience of people who work for, interact with, and benefit from an organisation and its activities.
(Remember that old saying: Culture eats Strategy for breakfast?)
So for not-for-profit Boards, fostering and leading a healthy organisational culture is not just best practice – it is essential for achieving sustained and long-term impact.
Why Organisational Culture Matters
Organisational culture encompasses the Values, beliefs, and behaviours that shape how the work is done and how people interact within the organisation.
For not-for-profits, where Purpose and people are at the heart of operations, culture is a critical enabler of:
- Mission Alignment: A positive culture ensures that all team members are aligned with the organisation’s mission and values, fostering a shared sense of purpose.
- Employee and Volunteer Engagement: Higher levels of engagement lead to increased retention, productivity, and commitment, which are especially vital in not-for-profits with limited resources.
- Reputation and Trust: Stakeholders, including donors, government agencies, and the communities served, are more likely to trust and support an organisation with a transparent and ethical culture.
- Adaptability and Resilience: A strong organisational culture promotes collaboration and innovation, helping organisations navigate challenges and maximise opportunities.
Leading organisational culture really must be a key priority for not-for-profit boards, yet, despite its importance, culture can often take a back seat and be overlooked until something goes wrong.
The Role of the Board in Shaping Culture
While the real work of shaping culture happens on a day-to-day within the organisation, the Board’s role is still pivotal in setting the tone from the top. Boards can effectively lead an organisation’s culture by:
- Defining the Desired Culture: Boards should articulate the cultural attributes that align with the organisation’s mission and values. This clarity provides a reference point for decision-making and behaviour across all levels.
- Modelling the Culture: Board members must embody the organisation’s desired culture in their actions and interactions. Whether it’s showing transparency in decision-making or prioritising inclusivity, Board behaviour sets a powerful example.
- Monitor and Evaluate Culture: Boards should regularly assess the organisation’s cultural health through surveys, staff feedback, and performance metrics. This ensures early identification of issues and opportunities for improvement.
- Support the CEO/Executive Team: The CEO plays a critical role in embedding culture throughout the organisation. Boards should provide the necessary guidance and resources to help the executive team champion the desired culture.
Some tips for leading your organisation’s culture
Whilst leading organisational culture may sometimes feel intangible, it can still be approached somewhat systematically.
1. Embed the desired culture in the organisation’s strategy – Culture should not be treated as an isolated element; it must be integrated into the organisation’s strategic plan. Consider how the desired culture aligns with strategic priorities and set clear goals to reinforce this connection. For example, if collaboration is a core value, prioritise initiatives that encourage cross-functional teamwork.
2. Prioritise Board Diversity – A diverse board brings varied perspectives, experiences, and ideas, which contribute to a richer and more inclusive culture. Diversity should extend beyond demographics to include professional backgrounds, skills, and lived experiences that align with the organisation’s mission.
3. Communicate Openly and Authentically – Transparent and consistent communication from the board fosters trust and clarity. Share decisions, celebrate successes, and address challenges openly to demonstrate accountability and authenticity.
4. Recognise and Celebrate Contributions – Culture thrives when people feel valued. Boards can foster this by recognising the achievements of employees and volunteers, whether through formal awards or informal acknowledgements. Meaningfully highlighting contributions reinforces positive behaviours and strengthens morale.
5. Address Toxicity Swiftly – Unchecked negative behaviours can erode organisational culture. Boards must ensure there are clear policies and procedures for addressing misconduct or misalignment with values. Taking swift and fair action sends a strong message about the importance of culture.
Remember the old adage: the standard you walk past is the standard you accept!
6. Invest in Leadership Development – Strong leaders are culture carriers. Boards should advocate for professional development opportunities that equip leaders at all levels to uphold and promote the organisation’s values.
7. Regularly Review Board Practices – The board’s own culture (i.e. how members interact, make decisions, and resolve conflicts) sets a precedent for the rest of the organisation. Conduct periodic self-assessments to identify areas for improvement and ensure alignment with the desired organisational culture.
Measuring Cultural Impact
As the saying goes: what gets measured gets managed. Boards can leverage tools such as employee engagement surveys, turnover rates, stakeholder feedback, and cultural audits to gauge the effectiveness of their cultural initiatives. These metrics not only provide good insights but also demonstrate the Board’s commitment to continuous improvement.
At the end of the day, leading organisational culture is more than just a governance responsibility – it’s an opportunity to create a real and significant legacy. By prioritising culture, Boards can build organisations that are not only effective in achieving their mission, but also places where employees, volunteers, and stakeholders thrive. With intentional leadership, clear communication, and a commitment to accountability, Boards can ensure their organisations’ culture is a foundation for organisational strength and success.
If you think I can help your organisation’s Board to improve the way you lead the culture of your not-for-profit, do get in touch with me at megan@mjbconsulting.net.au, or book in a zoom Discovery Call with me HERE to talk about what YOU need.
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