5 ways CEOs can assess and reset company culture

Author Sam Reese, CEO of Vistage

For CEOs, the work to build and sustain a strong company culture is never done. Even the best cultures can be challenged in an uncertain business landscape. But there’s no question that culture is the difference maker in all winning teams.

Great CEOs regularly assess their company culture to identify what’s working and what isn’t, and make adjustments. Here are five key steps top leaders take to refresh and realign their company culture:

The first step is understanding when company culture needs a reset. We’ve all recognised the signs of a company culture in distress. Goals aren’t met. There is a lack of trust between teams. People point fingers and blame others for performance challenges. There’s low accountability and poor communication. Decision-making takes too long and is tied up in bureaucracy. People are frozen by a fear of making mistakes or are afraid to ask for help when they need it. Silos develop. The most harmful sign is when turnover rates are high, and leaders notice their best performers are leaving.

At the leadership level, CEOs may take shortcuts to hit KPIs or focus on putting out fires instead of strategy. Great leaders recognise these indicators as signs that their culture may need a fresh sweep and can then take steps to rejuvenate their company’s culture.

Once leaders identify their company’s problem areas, the best leaders act by setting the tone for change. Legendary Notre Dame football coach Lou Holtz once said he never knew who his best players were until his team lost. I’ve experienced that in the business world as well.

True competitors step forward in challenging times. Amid the toughest challenges, winners find a way. Fostering that winning culture means that the team knows they are in the battle together, they will pick each other up when they fail, and face the next challenge as a stronger team. Teams thrive when they overcome challenges together.

Great leaders ensure everyone on the team knows what success looks like. Transparency about expectations — and how each employee affects the outcomes — keeps the team engaged and motivated. Open communication about results and progress helps the team stay tightly connected. When the executive team clearly articulates how their initiatives drive the company’s results, it sets a tone that encourages consistency between individual actions and overall company goals.

A strong leadership team is at the core of any cultural reset. It’s more than just leading. Successful executives stay actively engaged with teams to solve problems collaboratively and ensure everyone understands the vision and strategy. As the tip of the spear, the executive team also shows that they are always working to improve as leaders. They celebrate their employees’ victories and emphasize the importance of maintaining the company’s cultural values.

Over time, a leader may revisit the organisation’s mission, vision and values to ensure the company still addresses customer needs. However, changes to these core elements are strategic, not reactionary. They pave the way for a company culture focused on constant improvement.

In top company cultures, employees are empowered to take informed risks and learn from failure. Team members are excited about opportunities and possibilities, and new ideas frequently emerge. Employees approach challenges with a spirit of curiosity. Thriving teams meet deadlines and honor commitments. Employees communicate proactively, frequently and respectfully. In the very best companies, there is a sense of purpose, camaraderie and joy in the office.

It sounds simple, but the office environment contributes to a team’s success. Ensuring the office is tidy, well lit and has space for focused work and collaboration helps the team stay upbeat and productive. Providing the technology, tools and training the team needs to succeed is also essential to team morale.

Great leaders are consistent, focusing on performance and establishing a robust feedback loop with customers and team members. Transparency, frequent leader check-ins and clear communication when changes occur are all essential to building and sustaining a strong, adaptable company culture.

When leaders remain open to feedback and actively seek out new perspectives from CEO peers, they can continuously refine their leadership approach and evolve as circumstances change. Staying connected to CEOs navigating the same challenges helps them learn from others and see around corners.

In winning teams, oftentimes leaders look up and realise the sum is even greater than its parts. Great leaders work consistently and intentionally to create that kind of team. Business leaders are key to initiating this change, steering their companies toward a future of adaptability, engagement, and continual growth. These five strategies can lead to a revitalised company culture that boosts employee morale and drives sustained business success.

This story first appeared in Entrepreneur and features in the Vistage Resource Centre