Identifying And Responding To A Dysfunctional Culture

Key actions for boards

Loss of clients, mass employee walk-outs, shareholder lawsuits, stock price drops, hundreds of CEOs and executives turnovers, and countless daily instances of organizational inefficiencies – these are just some of the recent impacts of cultural dysfunction.

An organization’s culture is recognized as a critical element for success and differentiation. It can be the rocket fuel for delivering value to stakeholders.

Across the spectrum, an organization can have the 'right' culture for its goals and strategies, a misaligned culture, or a dysfunctional or even toxic culture

However, a dysfunctional or toxic culture can lead to daily instances of under-performance across the organization, damage a company’s reputation, put the organization in breach of laws and regulations, and be very costly to resolve. Highly publicized incidents of negative, dysfunctional or toxic culture over the past 18 months have many boards asking: could this happen here?

Produced by Marsh & McLennan Companies in collaboration with WomenCorporateDirectors, Identifying And Responding To A Dysfunctional Culture: Key Actions For Boards provides 15 actions directors can take to get insights on the organization’s operating environment and guide leadership in setting and sustaining the right culture for the organization.

This paper arms directors and other corporate leaders with the right questions to ask and the types of data, incidents, and trends to track to draw out a real picture of the organization’s culture.

Identifying And Responding To A Dysfunctional Culture