I am writing this blog sitting on a plane somewhere over the Pacific Ocean, on my way from Sydney to Los Angeles.
An article in The Australian this week grabbed my attention because it discusses an important device for shaping culture. The article is about Ian Narev - the Commonwealth Bank’s CEO - and his performance bonus structure: “Governance experts have questioned CBA’s heavy emphasis on customer satisfaction to calculate executive pay.” Credit Suisse (the experts in question) state that “the use of customer satisfaction was flawed as it could not be found to create value for shareholders.”
What particularly struck me during the speeches made by the finalists, was how often they mentioned culture as an important factor in their success. Most referred to the importance of what they did - what their colleagues did - and the set of values and beliefs driving it. These are the ways in which culture can be defined.