Ask 728 directors and C-level executives what the top risks are for 2018 and you’ll find two cultural risks among the top five.
That’s what Protiviti found in its most recent global survey:
- Ranked at #2 is “resistance to change”, a significant concern given that the #1 risk is the “rapid speed of disruptive innovation and new technologies”.
- Then, ranked at #5 is an “organizational culture that may not encourage the timely escalation of risk issues.”
In response, we would expect companies to invest mightily in measuring and improving their culture. Yet, there are no signs of that. Instead, we see billions invested in addressing other risks like big data, cyber threats and privacy. I’m not suggesting that these risks should be ignored. Rather, I believe we could spend significantly less, and address those risks faster, by getting our culture right at the same time.
When employees resist change and fail to escalate risks, they create a tremendous drag on the business. Companies that create the right culture will speed ahead of their competitors.