Just recently, I was catching up with an old friend's family. A couple of years ago, their son, fresh out of college, had joined a well-respected fintech company. He was initially thrilled, speaking highly of the company's values of innovation, integrity, and trust, as well as its promise of an 'amazing work-life balance'. However, when we met again this year, the picture had changed dramatically. He described a stark contrast between the company's carefully curated public image and the harsh realities he faced as an employee. The values he once held dear seemed to be empty promises, completely at odds with his everyday experiences. He was so disillusioned that he was planning to quit. His father, my friend, tried to brush off his son's concerns as typical Gen Z complaints. 

The same night I read about the tragic case of a young employee who died of exhaustion and work pressure at a Global consulting firm whose stated values include 'commitment and belief to building a better working world.' This incident, a stark reminder of the devastating consequences of unchecked corporate culture that prioritises productivity over well-being, combined with my friend's son's experience, led me to wonder: Is this disconnect between corporate rhetoric and employee experience a pervasive issue across generations, industries, and geographies?

The Superficiality of Corporate Culture Transformations

In today's rapidly changing and complex world (VUCA, BANI, RUPT, or whatever the next alternative may be) the idea of a cohesive corporate culture might seem old-fashioned or even unrealistic. However, culture is a fundamental factor influencing behaviour and results, as the HBR article, "Build a Corporate Culture That Works" aptly noted. But instead of encouraging real change, many companies treat culture rather superficially, focusing on creating feel-good stories and narratives. Many of us have either experienced or heard of "culture transformation" projects, which are often brought about by poor business performance, changes in leadership, or both. These ‘strategic transformation initiatives’ typically involve the likes of the Big Four consultancy companies (or their more affordable cousins), prescribing their standardised, ‘templatised’ approaches, without conducting thorough research into the specific needs and context of the company, its employees, and its customers. This can place a significant strain on HR and L&OD teams, requiring them to implement initiatives that may not align with the company's unique needs. This can lead to a cycle of superficial change, resulting in a collection of mission statements, value propositions, culture decks, KPIs, and training programmes that may not accurately reflect the actual employee or customer experience.

The Dangers of a Culture of Appearance

Trust, openness, and ethical conduct, often touted as the cornerstones of a successful culture, frequently become hollow slogans without substance. A cursory glance at many Fortune 100 organisations' websites or annual reports reveals a striking consistency in their declared values. Phrases like "innovation," "customer focus," "trust," and "integrity" abound. However, these cliches often mask the ugly reality of questionable corporate tactics. This is particularly evident in recent corporate failures such as Silicon Valley Bank, Wirecard, and Byju.

Moreover, data breaches, price-fixing, and environmental wrongdoing by several well-known firms underscore the discrepancy between stated beliefs and actions. Stressful work environments, prevalent in industries like technology and finance, often push employees to work excessive hours, juggle heavy workloads, meet unrealistic targets, and sacrifice their well-being. Many such firms often boast of values in stark contrast to reality. This superficial approach to culture change is not only ineffective but also harmful, contributing to a culture of appearance rather than authenticity.

Creating a Culture that Matters: Beyond the Superficial

Whilst crafting compelling narratives may seem essential, these stories must align with the lived experiences of employees. As Adam Grant, the well-regarded organisational psychologist asserts, culture is not just about perks and ping-pong tables. It's to do with “how people feel when they come to work, and how they feel about the work they do.”

To foster a genuine and positive culture, organisational leadership and HR departments should ask themselves:

• Are our stated values authentic and meaningful to our employees?
• Do our actions align with our stated values?
• Are our employees living our values?
• How do our values contribute to our organisational success?
• Are there any conflicts between our stated values and our organisational practices?
• Are our employees empowered to challenge behaviours that are inconsistent with our values?
• How do we measure and evaluate our progress in living our values?

By addressing these questions and taking concrete steps to align their actions with their stated values, organisations can cultivate a culture that is both resilient and meaningful. Perhaps it's time for us to go beyond traditional ROI and start measuring the "return on values" (ROV) or "return on culture" (ROC), as advocated by a recent study by Grant Thornton and Oxford Economics. This study establishes the connection between culture and profit. While stakeholders and shareholders rightfully expect profitability, balancing financial goals with adherence to core values and ethical practices is essential. By prioritising employee well-being, fostering a sense of purpose, and investing in learning and growth, organisations can nurture cultures that contribute to both financial success and a strong reputation.

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