Why board vigilance on culture is non-negotiable

Dear board members,

Let’s not mince words. Many boards are spectacularly failing not because they lack strategic acumen or financial savvy, but because they underestimate the silent power player in every organization: culture. It’s easy to overlook something that doesn’t scream for attention in balance sheets or KPI reports. Yet, it’s your culture that often decides whether your organization soars like an eagle or flaps around like a chicken.

Consider this: a recent debacle involving a once-celebrated East African retailer, which tanked despite promising beginnings. Financial mismanagement? Partly. But the core rot was cultural-a toxic mix of poor accountability and a cavalier attitude toward compliance that was overlooked by the board. They were so fixated on expansion that they missed the termites gnawing at their foundation.

A strong culture fights off threats and adapts to changes. A weak culture leaves you vulnerable to every sneeze in the market.

Mr.Strategy Tweet

On the flip side, look at thriving tech startups that are becoming a model of innovation and resilience in the region. In Uganda, Post Bank’s Wendi app, is getting lots of airwaves and deepending financial inclusion in ways many never knew existed.  What’s their secret sauce? A culture of relentless innovation, transparency, and employee empowerment, rigorously cultivated right from the boardroom. This isn’t just good fortune; it’s strategic design.

Here’s the truth: culture is your business’s immune system. A strong culture fights off threats and adapts to changes. A weak culture leaves you vulnerable to every sneeze in the market. Can your immune system withstand the Coronavirus?

So, what can you, as a board member, do to wield this invisible force effectively?

1. Get into the trenches. Understand the behaviors that are encouraged or discouraged. This isn’t about annual surveys but ongoing dialogue. What are people whispering about in the corridors? Is there fear or freedom in the air? Make sure you require the executive to conduct regular cultural audits to assess the prevailing culture against the desired one. You can visit culture.summitcl.comto see a sampel tool you can use.
2. Culture is caught, not taught. If you treat it as a tick-box exercise, so will everyone else. Your actions, your discussions, and the standards you set will set the tone for the entire organization. Lead by example.
3. Every leader you appoint is a cultural multiplier. Choose wrong, and you’re not just filling a position; you’re potentially altering your company’s DNA for the worse. Remember, skills are cheap; alignment is priceless. My advise, ensure cultural fit in leadership appointments.
4. Recognize and reward those who embody your desired culture. Make heroes out of those who do right by your cultural values, not just your financial goals. Make it your business to reward cultural champions.
5. Make culture a cornerstone of strategic discussions. How does each strategic decision reinforce or undermine your cultural ethos? If you’re not asking this, you’re playing chess without half your pieces. Integrate culture into your strategy processes.

Before you scroll to the next item on your agenda, pause and ask yourself: Are you overseeing a culture by design or by default? If it’s the latter, you’re already behind the curve.

It’s high time you stop treating culture as the soft side of business. It’s the hard truth underpinning your success or failure. Commit to being as rigorous with your cultural strategy as we are with your financial strategy. After all, in the unforgiving market, it’s not just the strongest that survive, but the most adaptive.

P.S. Let’s make your next board meeting a turning point. Put culture on the agenda, not as a footnote but as a headline. If you get your culture right, everything else-from innovation to compliance will align.

With direct candor,

Mustapha B Mugisa, aka Mr Strategy