Performance Culture

Company culture is at the heart of competitive advantage, because it determines how things are
done and how people behave; it is the hardest thing for competitors to copy. High performers
create an environment with a unique personality and soul, and with a passion for performance
so that people make the right decisions and do the right thing wherever they are in the business.
High-performance cultures have two central characteristics:
Each one is unique. Some companies, such as Johnson & Johnson, HSBC or Sony, have a
powerful organizational personalitya "soul"derived from a deep heritage. Others, such as
Southwest Airlines or Google, create their own distinctive environment. This potent combination
of values, character, rituals and beliefs creates a deep bond with employees, making their work
unusually meaningful and rewarding.
But all foster a similar set of behaviors. However distinctive such corporate "personalities"
may be, they all encourage remarkably consistent patterns of behavior. People in these
organizations care passionately about winning. They orient themselves outward, focusing on
customers and competitors rather than on internal politics. They think like owners and have a
bias to action. They build teamwork and are open to change.
Below are some other characteristics of higher-performing organizations:

Their leaders are clear, fair, and talent-oriented. They are more likely to promote the best
people for the job, make sure performance expectations are clear, and convince
employees that their behaviors affect the success of the organization.

Their employees are more likely to think the organization is a good place to work. They
also emphasize a readiness to meet new challenges and are committed to innovation.

They are superior in terms of clarifying performance measures, training people to do

their jobs, and enabling employees to work well together.

They are more likely to adhere to high ethical standards throughout the organization.

Companies should have three basic or core abilities to move towards high performance
The ability to stop and take a hard look in the mirror. In todays rapid-fire business
environment, taking a minute to press pause and think can seem like a death-sentence.
Unfortunately, organizations that operate in this fashion may continue to spin their wheels with
the same old ways of doing things to try to solve problems that have changed or evolved over
time.
Olli calls this quality a passion for renewal. Organizations that are able to stop from time-to-
time to really understand why they are doing these things are better positioned to identify the
need to change in order to keep pace with the market and continue to drive results.
The ability to include all stakeholders in the conversation. Culture is a collective concept- a
phenomenon that forms and evolves through the norms of the group. While many people view
culture as the responsibility of leadership alone, the most successful organizations Ive
observed and worked with over the years are those that understand and value the input of their
stakeholders.
Olli recognizes the need for transparent and trusting relationships throughout an organization.
By fostering trust and transparency at all levels, stakeholders are given a safe environment to
provide input and take an active role in shaping the organizations culture.
The ability to let go of the existing behaviors and practices that are no longer serving the
organizations success. Knowing you should lose ten pounds and actually changing your
behavior to do it are two very different things. Getting people to understand that some ways of
doing things are no longer effective and actually getting them to change is similar. In both cases,
you must take the time to change behaviors that are no longer supporting your desired goals.

The chief financial officers (CFOs) role continues to evolve to that of an architect of
business value. It is moving toward driving business growth and managing
complexity while controlling costs.

A recent study called CFO as Architect of Business Values

Five key elements

Align Strategy
As companies pivot to growth, CFOs must develop a master strategy that aligns a wide range of
business needs, determines how to prioritize scarce resources, and evaluates potential risks.
Because these strategic choices are expected to become increasingly granular as companies
expand across products, services, and regions, it is essential that the CFO takes a holistic view
of the organization and ensures that objectives align closely with those of the CEO and other C-
suite players. And that means collaborating across functions and making sure that all strategies
are aligned and optimized.
Transform Operating Models
Todays companies are in a constant search for true value-added services, while also ensuring
the agility and flexibility to scale up or down in response to volatile demand. In many cases,
organizations will require a more robust M&A platform as inorganic growth becomes
increasingly important.
Indeed, companies are being confronted with very different requirements, making a flexible
operating model especially critical. As the Architect of Business Value, it is up to the CFO to
ensure that the companys operating model continually evolves in a way that delivers value to
the business.
Manage and Measure Performance
The current business landscape requires CFOs to be much more forward-looking. They must
track business indicators earlier in the cycle, take a holistic view of performance, and analyze
financial outcomes both in terms of decisions taken within the enterprise, and in response to
changes in the broader external market.
Successful CFOs must ensure that business choices make economic sense when a decision
is made, and as it is implemented for years to come.
Embrace Digital
Any organization that wants to grow needs to invest in digital technologies, whether it is cloud
computing, software as a service (SaaS), big data and/or analytics, mobility, or social media.
CFOs are expected to have a view on the ROI that can be achieved from such investments, and
are developing a robust framework for evaluating and prioritizing these items.
They are also leveraging their insights into the vast quantity and variety of data that digital
drives to make sure that they get maximum value from purchases.
Develop Advanced Finance Capabilities
Much is expected of todays CFOs but their financial skills remain core. The new research
shows that CFOs at high-performance businesses are already more actively engaged in
providing the insightful analytics that organizations need.
In the future, however, the finance function will require much more diverse types of talent
from expertise in particular geographies or industries, through the ability to communicate
effectively and collaboratively across regions, to specialized knowledge of specific business
processes, pricing, and trade promotion among them.