Whilst it's not clear if Peter Drucker ever uttered the CESFB phrase, it's certainly passed into popular business parlance and folklore. But if it is such a reality, why are so few organisations single-mindedly focussing on measuring and influencing their culture?
Recent research by Prof Moir Clark at Henley Business Schools highlights that high performing businesses have strong customer-centric cultures. Moira contests that culture trumps staff engagement for driving business performance,
Her premise is that whether staff are happy or satisfied is largely irrelevant; what's far more important is whether they're aligned with the organisational purpose and that the business recognising and rewarding the right behaviours imbeds culture and makes it authentic.
The debate will continue to rage - but it's clear that too many employers are paying lip service - as opposed to shaping and changing culture
Despite culture being in the top three priorities for company boards, only 20% of 450 London-based directors and board members reported spending the time required to manage and improve it. Some 62% of survey respondents felt that they were primarily responsible for setting culture from the top of an organisation. However, a similar proportion (63%) either did not consider culture as part of their formal risk assessment or failed to routinely consider the risk associated with their corporate culture. Only a quarter of boards said that they undertake an internal or external audit of their culture. The remaining three-quarters rely upon sources such as employee feedback, customer surveys and risk events such as rule breaches, human resources issues and the monitoring of compliance.