How Can Your Company Translate a Finance Narrative Culture and Cadence that Is Inspiring and Engaging to Your Associates?
Carpe Diem Managing Partner, Jeff DeFazio, spoke to a number of Corporate Communication leaders over the last 6 months to better understand how to transform an organization’s culture to a more finance-driven culture while continuing to maintain an inspired and engaged workforce. The Communication Leaders he spoke to represent a wide range of companies from CPG, Technology, Health Care, Pharma, Energy, and Retail. Communication Leader’s views represented a mix of public and private equity-owned companies, predominantly with a scale of over $2 billion in revenue. DeFazio condensed the discussions in the following executive recap.
In summary, most communication leaders discussed shifting culture to a more financial orientation by ensuring associates understood the link between capital markets and greater investment capability in R&D, operational improvements and brand building. Shifting an organization’s culture to more finance-driven requires rewarding more for outcomes, leaders taking more risks, and ensuring associates are deeply connected to a company’s vision and strategy.
Results-focused Culture and Transparent Communication
With a focus built on results paired with transparent communication, leaders were successful in transforming the company culture. Keeping associates engaged in the how and why was beneficial in the shift to this culture, as well as keeping expectations clear. Leaders also stated that through delivering the company vision effectively, associates felt “proud of the products, resulting in higher results.”
Some of the leaders surveyed mentioned a disconnect in leadership due to a lack of transparency stating, “[We] need to know more about the story – why an IPO? What are we trying to achieve?” The leader also explained that associates need to be aware of business objectives and need to be able to understand the macro picture to improve the shift to a financial-driven culture.
Many leaders expressed that they understood the financial aspect but wanted to understand the context and the big picture. Further, these leaders said it was important to be familiar with how the small things they complete in their role each day contribute to the overall success and impact of the financial-driven culture. One leader gave an example of the two levels most important to explain to the company saying that it should be talked about in simple terms – past success attracts capital from new investors. New capital can be used to fund new investments in innovation, marketing, and improved operational capability. The leader added by saying, “[We will] continue to do what we’re doing [because] what we’re doing so far has gotten us to this point. If [we] get funding, [we] are in a better position for RD, [which means] greater opportunities for associates, greater stability, and, as we grow, new jobs with deeper career paths for people.”
More Risk, More Reward
Many leaders reported that when leadership is more willing to take risks as well as reward associates for successful outcomes, the company culture is more engaged, and morale is higher. One leader said that before the financial-driven culture shift, the company culture “was playing it safe, playing not to lose” and needed to change to “play to win.” The new CEO at this leader’s company is “now trying to change culture by identifying four key behaviors and by awarding for outcomes.”
A Personal Connection to the Company Vision and Strategy
The most common answer from the survey was that associates needed to feel personally invested in the company vision and strategy. The question that plagued many leaders when deciding on a financial-driven culture was “What’s in it for our associates?” One leader expanded on this statement by sharing, “There needs to be an appeal to the employee of why they matter and what their impact is in relation to the overall narrative. Having an emotional impact and being cognizant of the human story and experience is necessary for engaging and inspiring associates to partake in this overall vision and strategy.”
One leader expressed that, “An active storyteller that can resonate with the company and get them excited” would be conducive in the transition to a financially-driven culture. Another leader had a similar response saying, “grit, perseverance, and inspiration” are important as well as reinforcing those associates are “part of something bigger, [giving them something] to rally behind. It’s hard to rally behind numbers, but [easier to] rally behind a CEO, leader or peer, and the living mission of the company.” Another leader noted the significance of giving the company a “human face” and creating a culture that has “pride in what they do.”
Conclusions
The conversations DeFazio had with Corporate Communication leaders were best summed up by the following comment: “The approach remains the same – [We are] driven by tapping into the passion that [already] exists and in helping people feel heard and understood. Overly corporate messages are not the [authentic] style of communication – human, not highly corporate.” Leaders understand the numbers, but ensuring adequate transparency in communication, rewarding successful results, and relating to each other on a personal level are the most successful ways to ensure engagement and inspiration is achieved in the shift to a financially-driven culture – a culture that people truly feel invested in and proud of.
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for public and private multinational companies. For deeper, custom insights, contact Jeff DeFazio at Jdefazio@carpediempartners.com.