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Transforming Culture: Part 4 – Culture Transformation Strategy

Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture. Currently running on the Culture Crafters podcast on the Compliance Podcast Network is a 5–part of podcast series with myself and Sam Silverstein, the most trusted voice in America on accountability. (The Culture Audit™ is the sponsor of this blog post series.)

In this companion, 5-part blog post series, we look at the ways a company in the depths of such a toxic culture can begin to make a culture comeback by planning out and taking concrete steps to turn around and rebuild its culture. In Part 4, we look at how to take on a culture transformation through the design and implementation of a culture change strategy.

Implementing a culture assessment is vital in assessing the current state of an organization’s culture and identifying areas for improvement. This systematic evaluation provides valuable insights into the underlying values, norms, and behaviors that shape the organizational environment. By conducting a thorough culture assessment, companies can pinpoint specific issues, align organizational values with actions, and develop a strategic roadmap for cultural change.

From there, you can leverage the findings from a culture assessment to tailor your remediations to address the root causes of toxicity and nurture a culture of integrity and excellence. By emphasizing the actionable nature of culture and culture assessment, an organization can make informed decisions and implement targeted strategies to drive positive cultural shifts within their organizations.

The process is similar to managing any other risk. After a culture assessment has revealed the strengths and weaknesses of any organizational culture, it can provide actionable insights on addressing specific issues and lay the foundation for cultural transformation. Whether a culture is by design or default, the culture assessment is a guiding light in formulating strategies to drive positive change. The culture assessment provides information about improvement, so you should assemble your plan. Once you have the strategy in place, you train your employees.

Once you have trained on the new culture strategy, you must implement it. This is where senior management again becomes so essential. A recurring theme for organizations with superior cultures is that actions speak louder than words when shaping workplace culture. It all starts with leaders who must embody the values they expect from their employees. Actions speak louder than words, and when leaders consistently demonstrate the organization’s values, it sets the tone for others to follow suit. Leaders must embody the values they expect from their employees. This role of leadership in spearheading culture transformation includes the profound impact a leader’s actions and behaviors have on shaping the culture within an organization. Leaders can inspire a culture of trust, accountability, and excellence by showcasing genuine engagement with employees and embodying core values.

It also means enforcing accountability and upholding values. This means holding everyone, regardless of their position, accountable for their actions. If a person’s actions supersede the organization’s values, it questions the strength of those values. Actions speak louder than words, and when leaders consistently demonstrate the organization’s values, it sets the tone for others to follow suit.

In a world where workplace culture plays a pivotal role in the success and sustainability of organizations, the need for understanding and transforming culture has never been more critical. This is true whether your organization has sustained a catastrophic culture failure, similar to what we see currently ongoing with Boeing, or has brought on a new acquisition or even a joint venture partner. Upgrading and updating your culture will be critical for any corporation to succeed.

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Compliance Tip of the Day

Compliance Tip of the Day: Improving Culture Through Investigations

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we consider how you can improve your culture through your investigation process.

 

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Great Women in Compliance

Great Women in Compliance: Juliana Molina on The Culture We Deserve

Welcome to the Great Women in Compliance Podcast. In this episode, Hemma visits with Juliana Molina, the globe-trotting Compliance and Ethics expert. With law licenses in Brazil and Spain, and as in-house counsel in the US, she brings a multicultural touch to her work. She thrives as an advisor to various industries, driven by a passion to make compliance and ethics more human-centric.

Juliana’s extensive international experience gives her a unique perspective on how culture influences compliance and ethics practices, and how to adapt to different cultural contexts. She prioritizes facilitating ethical choices and fully informed decisions.

Juliana’s perspective on cultural transformation in ethics and compliance is deeply rooted in her belief that an ethical organization is one that views compliance not just as a matter of adherence to rules, but as a commitment to prioritizing the well-being and dignity of all its stakeholders.

Her experience in advising international businesses has reinforced her emphasis on understanding and addressing the diverse needs and experiences of everyone involved, including employees, customers, shareholders, and vendors.

Juliana’s vision of a human-centric approach to compliance promotes empathy, open communication, and collaboration in the co-creation and implementation of compliance programs. By embracing the diverse perspectives within an organization, Juliana believes we can make more informed decisions, drive cultural change, and ultimately align our operations with our vision and goals.

Key Highlights:

  • Human-Centric Cultural Transformation in Ethics and Compliance
  • Fostering Open Communication for Ethical Leadership
  • Leadership’s Role in Driving Organizational Cultural Transformation
  • Ethical Leadership to Prevent Toxic Workplaces
  • Ethical Culture Through Compliance and Empathy
  • An Inclusive Approach for Female Empowerment in Compliance

Resources:

Join the Great Women in Compliance community on LinkedIn here.

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Compliance Tip of the Day

Compliance Tip of the Day: How Investigative Triage Can Drive Culture

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we consider how your investigative protocol and triage can drive and improve your corporate culture.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: Non-Retaliation to Improve Culture

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we discuss why retaliation against a person who speaks up not only creates a toxic work environment but also discourages victims from reporting incidents.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: A Listening Tour for Employee Engagement

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we explore how and why a listening tour can be a powerful tool to engage employees.

 

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Creativity and Compliance

Creativity and Compliance: Reels and Shorts

Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection—they all take creativity.

Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the award-winning Compliance Podcast Network.

Ronnie’s company, Learnings and Entertainment, utilizes the entertainment devices that people use to consume information in their everyday, non-work lives and applies it to important topics around compliance and ethics. It is not only about being funny. It is about changing the tone of your compliance communications and messaging to make your compliance program, policies, and resources more accessible.

Today Ronnie and Tom consider how Reels and Shorts can be used by compliance for great engagement and compliance communications.

In today’s digital era, the concept of utilizing social channels for communication is gaining significant momentum. Fox, a strong advocate for the use of social channels, believes in integrating elements of pop culture and millennial trends into corporate communication efforts to ensure the message is not only informative but also entertaining. Such strategies can enhance visibility, influence, and the overall effectiveness of compliance programs.

Similarly, Ronnie emphasizes the need to adapt to modern communication trends, such as the use of short, engaging videos akin to those found on platforms like TikTok and YouTube. Incorporating fun and interesting videos into communication strategies can help break down barriers, increase engagement, and ultimately improve the effectiveness of compliance training and messaging.

Both these experts highlight the importance of simplifying messages, adding entertainment value, and distributing content in various places to increase visibility and influence within the organization.

Key Highlights:

  • Engaging Short Videos for Corporate Communication Strategy
  • Engaging Corporate Communications Through Multimedia Tactics
  • Engaging Compliance Programs for Organizational Influence

Resources:

Ronnie

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Blog

Culture Week: Part 5 – A Listening Tour to Improve Culture

We conclude our focus on culture this week by returning to some of our long-time compliance roots for improving culture, such as the listening tour. In 2022, returning Starbucks Chief Executive Officer (CEO) Howard Schultz began engaging in a “listening tour” of Starbucks stores literally across America. In an article by Justin Bariso, he said Schultz told employees, “We are traveling the country, trying to, with great sensitivity, understand from you how can we do better.” What are employees telling him? Bariso wrote, “he listens intently to one Starbucks employee after another; a pained look comes over Schultz’s face. Employees lament the lack of training, increased turnover, and extreme pressure they’ve endured as company profits soared, but worker conditions plummeted.”

This listening tour has several goals for Schultz. The first is that even though the company has sustained record profits, morale at the company is at an all-time low. Witness the unionizing efforts that have been successful. Employees are simply fed up with not being listened to. This has eroded employee trust and management and driven down the once vibrant culture at the iconic institution. To rebuild that trust, Starbucks, as their CEO, “must first listen.” However, it is more than simply listening to rebuild trust; it is rebuilding employee engagement by making them and their ideas part of the solution.

There is still much work for Starbucks and Schultz to do. Yet these initial steps can lead to real change. Schultz is doing more than saying “We Care”; he is modeling that language in his behavior. This is action at the top. It also communicates to other senior management that they must listen to re-engage and build employee trust. What if a Chief Compliance Officer took that same approach to culture? I believe that a Schulz-inspired listening tour can improve your corporate culture. Below are three keys for the compliance officer to conduct a practical listening tour.

A. Engagement

Start by meeting as many compliance stakeholders as possible. You can use town hall settings or go smaller, meeting with key employee leaders, key stakeholders, and employees identified as high-risk who you can meet with individually or in smaller groups. Listen to their compliance concerns and take their compliance ideas back to the home office. After returning to your office, winnow down their ideas and suggestions to form the basis of enhancements to your culture. This employee engagement will lead to greater stakeholder buy-in for your culture.

B. Education

During the town hall meetings and the smaller, more informal group meetings, you can do more than simply listen—you can also train. This training is on ethics and how the employees could use compliance as a business tool. Most business’s ethical standards are not found in an existing compliance program. They are found in the general anti-discrimination guidelines and ethical business practices such as anti-competitiveness and prohibition of using confidential information. Often, these general concepts can be found in a company’s overall Code of Conduct or similar statement of business ethics. Workplace anti-discrimination and anti-harassment guidelines can be found in Human Resource policies and procedures. Concepts such as anti-competitiveness and the use of customers’ and competitors’ illegally obtained confidential information may be found in antitrust or other business practice-focused guidelines.

This gets your employees and other stakeholders thinking about doing business ethically. It is ethical concept-based training, in contrast to a rules-based approach. Moreover, this lays the groundwork for enhancing your culture and the training that will occur as the enhancement is rolled out.

C. Risk Assessment

Now, think about this same approach from the risk assessment perspective. Listen to your employees’ concerns and compliance issues. From there, you can ask questions about what was done and why. This approach is not adversarial or interrogation, but it is ferreting out the employees’ concerns while having the employees educate your compliance team on the actual procedures that are used. By listening and gently questioning, you should garner enough information to create a risk assessment profile that can inform and even become the basis of compliance program enhancements.

Bariso concluded his article by stating, “People lose motivation when they sense you don’t care. But the simple act of listening creates goodwill. When your people feel understood, they’ll be motivated to contribute and can help you discover insights you wouldn’t otherwise. So, when it comes to solving your company’s biggest problems, don’t ignore your most helpful resource: your people.” It all starts with listening. Let your employees and other stakeholders have the “chance to share their problems, as well as to propose solutions. Meetings like these will reveal key insights and transform your people from employees to partners.”

I hope you have enjoyed and, more importantly, found this week’s blog posts on helpful culture. I also hope you will join the conversation by commenting or posting on LinkedIn about your experiences around corporate culture.

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Compliance Tip of the Day

Compliance Tip of the Day: To Improve Culture, Engage More

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we explain why perhaps the key factor in corporate culture is employee engagement.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: A Toxic Culture and The Fraud Triangle

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we review the interesting intersection of a toxic corporate culture and the fraud triangle.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.