Culture as a Corporate Asset
Translating Values Into Value
Like an organization’s people, intellectual property, technology, and other assets, culture is a key success factor that contributes to an organization's competitive advantage and long-term value creation. Yet, in too many organizations, culture does not get the level of boardroom attention it deserves until a problem arises. The 2017 NACD Blue Ribbon Commission members issue a call to action for directors of all organizations to elevate their dialogue on culture—including culture inside the boardroom—to improve the quality of the board’s work and enhance its impact.
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Build Culture Into Ongoing Discussions With Management About Strategy, Risk, and Performance.
Emphasize that the way in which results are achieved is as important as whether or not a given goal is met.
Board-Level Reporting on Culture
Directors should demand qualitative and quantitative data from management about the health of the firm’s culture, including information from sources outside the organization.
Formal and Informal Reviews of Boardroom Culture
Use results of board evaluations and executive-session discussions about culture to inform board composition, succession planning, and continuous improvement efforts.
Make Culture a Formal Criterion in CEO Selection, Evaluation, and Compensation.
Directors should set the expectation that the CEO and senior executives do the same with their own teams.
The 2017 NACD Blue Ribbon Commission
Nicholas M. Donofrio
Director, AMD Inc., BNY Mellon Corp., Delphi Automotive PLC, Liberty Mutual Group, The MITRE Corp., NACD
Helene D. Gayle
McKinsey Social Initiative; Director, The Coca-Cola Co., The Colgate-Palmolive Co.
Director, Booz Allen Hamilton Inc., Sirius XM Holdings Inc., Zurich Insurance Group
MetricStream Inc.; Director, Nordstrom Inc., Verizon Communications Inc.
CECP: The CEO Force for Good; Director, FreshPet, Manna Pro Products LLC
KPMG Board Leadership Center
JPMorgan Chase & Co.; Director, Alaska Air Group Inc., Toyota North America Advisory Board
Director, Hess Corp., Tesoro Corp.
SAGE Leadership & Strategy; Director, Biscuitville Inc., Diversified Trust Company, Martin Marietta Materials Inc., NACD
Heidrick & Struggles
University of Delaware Weinberg Center for Corporate Governance; Director, Bob Evans Farms Inc., HealthSouth Corp.
Director, NACD, Southern Company Gas, Tenet Healthcare Corp., Smithsonian Institution National Board
NACD; Director, Nura Health Inc.
Global Corporate Governance & Executive Compensation Practice, Sidley Austin LLP
National Defense University College of Information and Cyberspace; Director, American Armed Forces Mutual Aid Association, Cubic Corp.
Director, Edwards Lifesciences Corp., Public Storage, Kaiser Permanente
Director, Fannie Mae, Morgan Stanley, Paxos, Workiva, Sustainability Accounting Standards Board Foundation
Director, Akamai Technologies Inc., PNC Financial Services Group Inc.
Director, NACD, Simon Property Group, National Bureau of Economic Research, US-Russia Foundation for Economic Development
Marie Oh Huber
eBay Inc.; Director, James Campbell Company LLC, Silicon Valley Community Foundation
About NACD's Blue Ribbon Commission Reports
Our Blue Ribbon Commission Reports (BRCs) are NACD’s annual signature publications that propose new principles and practices to address the most critical boardroom issues. Read more about the history and impact of the BRC report series here.