As a risk professional working with strategic risk in the private sector, it is my responsibility to understand existing risks and emerging risks that may have a negative impact upon my business. There is a risk that has recently taken the forefront. This risk has always existed, but now leaders are being challenged to grasp it. This risk is culture risk. What is culture risk? It is the threat or potential harm that takes place when there’s misalignment between an organization’s values and leader actions, employee behaviors, or organizational systems. What’s my definition of culture risk? It is the risk of damage when leaders fail to practice what they preach, allow inappropriate behavior to remain prevalent within the environment they lead, or allow systems and processes to become dysfunctional. It also relates when systems and processes are misaligned.
Why is culture risk appearing on everyone’s radar? Culture risk is a hot topic because it is the silent killer of any organization or effort. Over the past few years we have seen in the news breakdowns within all types of organizations because toxicity was allowed to exist within the culture. In hindsight individuals raised their hands and stated that there were problems related to culture. A breakdown in culture can expose an organization to all types of negative consequences including disengaged members, stunted growth, reputational damage, and even dissolution. Poor culture affects the bottom line. This concept of culture is not just applicable to Fortune 500 Companies or large institutions. This applies to small businesses, non-profits, religious institutions, and even familial relationships.
There’s a saying from Song of Songs that states, “its the small foxes that destroy the vine.” What does that mean? A fox is is not a ferocious animal. A fox is very unassuming but to a well producing vineyard, the fox is a destructive animal. Even a small fox has the ability to destroy a valuable vineyard. In context, small overlooked behaviors, habits, and ways of being impact culture and culture impacts the end goal you are seeking to achieve.
So why am I blogging about this topic? As leaders, whether we are leading at home, in business, charity, religious institutions, sports, schools, the military, or in the community, we must understand the impact of culture and the atmospheres created around us. We can not afford to become blind or turn our heads to matters or behaviors that exist around us. Brilliant leaders understand culture. Brilliant leaders guard culture. Brilliant leaders steward and drive culture. What are the things that you promote to ensure that your culture is positive? What are the things that you have failed to consider? What are the things that you are afraid to address? Do you have your finger on the pulse of your organization or the effort that you are leading? Do you have a way to identify, monitor, and manage what’s going on related to culture? How do you gain comfort that what you think of your environment is the reality? If someone raised their hand, would you listen and give them comfort to speak without retaliation? These are few questions to ponder when you are considering culture.
2020 is about building. Whatever you build, eventually a culture will evolve. A healthy culture shapes for healthy outcomes. Brilliant ones, lets stay alert as we are building and keep those beautiful vineyards from invading foxes that wreak destruction.