Corporate Governance & Organisation Culture Flow

Alignment & Benchmark for High Performance & Profit

Introduction.
Organisational Culture circulates around business, as blood circulates the body. Organisation Culture motivates the intangible energies of business beliefs, values, and attitudes, they return as a dynamic Organisation Culture of customer satisfaction, loyalty, and profit. Organisational Culture both encapsulates and reflects a team’s, or organisation’s mission, strategy and business objectives.

Organisation Culture starts with a Board’s Corporate Governance, then flows down with authority throughout their organisation. Misalignment in the culture flow, at any culture transition point in an organisation, degrades communications, alters the attitudes and motivations, that determine business efficiency, performance, productivity and profit.

Organisation Culture flow determines the effectiveness of a Board’s Corporate Governance

Corporate Governance is “how a board advises, delegates and monitors management’s achievements for improved business and organisation performance”.

No Board can be better than a Board that gives management perfect advice, delegates and monitors management’s achievements perfectly. That Board must have perfect knowledge, and understanding, of its market and technology. But a board cannot have perfect knowledge and understanding of its market and technology, unless it has perfect communications with its market, and technology.

Perfect communications between any two people, or two organisations, exist only when the words, and symbols, used in their communications have exactly the same meanings, and same implications, for both sender and receiver. That is the sender, and receiver communicate with each other on exactly the same wave-length of beliefs, values, and attitudes. i.e. both parties have the same cultures of beliefs, values, and attitudes to the subject under discussion. The culture of the sender perfectly matches the culture of the receiver. The culture of the receiver perfectly matches the culture of the sender. The organisational culture, of attitudes, beliefs and values of the Board of Directors perfectly matches the organisational culture of attitudes, beliefs and values of their market and technology.

1. A Board’s Corporate Government Benchmark Organisational Culture for high performance is the organisational culture of their specific market and technology.
   The same logic of perfect communication and matching organisational cultures of attitudes, beliefs, values, and motivations applies equally to the CEO and Senior Management Team,if they are to understand perfectly, and implement efficiently and perfectly their Board’s perfect advice.
2. The Benchmark Organisational Culture for High Performance by a CEO and Senior Management Team is the Culture of the Board, that matches the Culture of its Market and Technology.
   Each Senior Manager has a different culture of attitudes, beliefs, values and motivations, as leader of their business unit. e.g. a finance manager has different beliefs and values and motivations to those of a marketing manager. The logic of perfect communication for high performance and productivity in their business unit dictates:
3. The Culture of Attitudes of the Senior Manager, to managing a position, for which he/she is directly responsible, is the organisational culture for high-performance in that specific position.

Organisational culture audits identify culture mismatch. Organisational Culture mismatch locates and predicts financial loss.

Geier Performance Profile Metrics – High Performance, Productivity & Profit in Corporate Governance