Technology and managing a multi-generational workforce pose threats to company culture
A failure to give due consideration to organisational culture poses a regulatory and reputational risk for financial services firms, according to global research from Allen & Overy. While there is undoubtedly significant opportunity, senior leaders are also concerned about the threat to culture of new technology, coupled with the challenge of managing a multi-generational workforce.
The global study of over 500 financial services companies showed that: 62 per cent of senior leaders believe new and emerging technology platforms pose the biggest threat; and more than half of respondents say that managing a multi-generational workforce poses a significant challenge to their firm’s culture over the next twelve months. The responses also highlighted that organisational culture maturity is overridingly determined by the efforts of individual boards and senior leadership where there is still more work to do: Just 56 per cent of respondents rated their organisations favourably when asked if employees are encouraged to speak up and voice concerns, while only 25 per cent of respondents rated their senior leaders favourably when role-modelling expected behaviours.
Although people managers have a crucial role to play in setting the behavioural tone of their direct reports, respondents consider them to be the least committed to the culture of the firm compared to other senior leadership teams (Board or C-suite).
Sally Dewar, CEO of A&O Consulting, said, “Culture continues to top the agenda of policymakers, regulators and senior boardroom leaders across financial services firms, but the themes identified by this research can apply equally to companies across many sectors.. Leadership teams need to continually assess and evolve their approach to organisational culture; the factors influencing culture today are very different when compared with the previous few years. Whilst technological risk is front of mind for senior leadership, it can also create opportunity. Used effectively to enhance feedback and data analysis, it could highlight cultural issues that, when actioned, lead to long term improvements. And, a multi-generational workforce brings diverse thoughts and opinion, which are proven to enhance decision-making. Understanding this and adapting business strategy can have a direct influence on overall business performance. Organisations need to position culture as a strategic imperative and embed corporate values to support their business strategies.” said Clive Garfield, Executive Director, A&O Consulting. The full report can be accessed from the firm’s website.
