​​How to Build a High-Impact Board Culture​

The UK Corporate Governance Code states: “The board should establish the company’s purpose, values and strategy, and satisfy itself that these and its culture are all aligned. All directors must act with integrity, led by example and promote the desired culture”. 

As organisations continuously adapt to increasing complexity and volatility, a well-defined, board-led culture remains significant. 

ESG Consideration

The importance of the board in establishing culture and purpose has been reinforced by the emphasis on environment, social and governance (ESG) factors.  The ‘S’ which encompasses aspects such as diversity, equity and inclusion, has received particular attention. There is now more of a common trend of organisations to respond to social issues, which extends to their board culture - these expectations are continually changing, particularly in response to societal and generational shifts.  

Younger generations are demanding greater transparency and accountability from organisations on issues such as environmental, sustainability and ethical governance. To stay relevant and trusted, boards must embrace agility and regularly evaluate their culture to reflect societal values. 

One of the primary responsibilities of leaders is ensuring the behaviours and values advocated by the board are embodied throughout the entire organisation. This is crucial for creating a cohesive and purpose-driven culture. 

Challenges in Cultural Changes

Transforming an organisation’s culture is a complex and ongoing process and not without challenges. Companies can face resistance from employees who are accustomed to existing ways of working. Overcoming this pushback requires a thoughtful and strategic approach, including clear communication, training and support for employees as they understand and adapt to new cultural norms. 

The Importance of Succession Planning

Succession planning plays a pivotal role in shaping and sustaining board culture. By proactively identifying leadership gaps and nurturing a pipeline of culturally aligned leaders, boards can ensure continuity, resilience and long-term impact. 

The Role of Chief People Officers (CPOs)

CPOs are increasingly recognised as strategic partners in shaping company culture. With expertise including organisational effectiveness, change experience, right-sizing, scaling and modernising, CPOs play a critical role in aligning culture with business goals. They can also embed the company’s values into promotion processes, job descriptions and performance evaluations.

Operationalising board culture is a multifaceted effort that requires a holistic and proactive approach. Leaders must prioritise cultural alignment, ensure values and behaviours are lived throughout the organisation, and address challenges with thoughtful strategies.  

Odgers’ People & Culture Practice partner with a broad scope of organisations across the globe to strategically align their board culture and develop world-class talent to drive lasting success.