Shaping Organisational Culture: The Role of Boards, CHROs, CLOs, and the C-Suite

When you hear "company culture," you may envision ping-pong tables, snacks, or trendy office environments. But true company culture is more than surface benefits. It's the way individuals connect, work together, and develop together. And the reality: top-down decrees don't build the most successful cultures. They're built by teams—the folks in the trenches, grinding every day.

In today’s fast-paced world, CHROs, CLOs, boards, and the C-suite are stepping up to lead the way, not just as administrators but as architects of culture. They're realising that, to foster innovation and create a meaningful work environment, culture can’t be micromanaged from above—it needs to grow organically, with everyone playing a part. So, why is this important? Business in the future is about enabling teams, pivoting fast, and building a culture that lives on genuine human connections. Let's explore how team-oriented culture is the key to winning and how leadership at every level is central in defining that culture.

The Old Top-Down Method: An Outdated Concept?

For decades, company culture was imposed from the top down. The executives and the board would determine what behaviours, values, and norms the organisation would possess. They'd then attempt to implement those values across the company.

It sounded good on paper. If the leadership determines the course, it would logically follow that they understood what was ideal for the culture. But in practice, this tactic doesn't usually work. How often do you hear about a company's "core values" that sound great, but feel totally detached from what is actually occurring on the ground? That is because culture can't be prescribed—instead, it has to grow organically, through authentic interaction among teams.

When you dictate culture top-down, you run the risk of building a disconnect between what is said and how it feels. This results in employees being disengaged or stifled and unable to be themselves. Culture develops organically within groups of people—where they collaborate, problem-solve, and develop relationships.

So how do we repair it? Easy answer: put the focus on the teams. Teams are where culture actually happens.

The Rise of Team-Centric Culture

Now that we’ve seen the pitfalls of a top-down approach, let’s talk about what really works: team-centric culture.

Imagine a workplace where the team has a say in shaping the culture. It’s not about corporate values handed down from the top, but about everyday actions and interactions between team members that build trust, accountability, and a sense of belonging. This is where the magic happens.

Deep within a team-focused culture is the principle that culture develops in teams. Why is this? Because it's in those smaller groups where meaningful relationships occur—people work together, challenge and question one another, and support each other's development. It's about empowering people to make decisions, own things, and create a culture for themselves.

One good case in point is Blue Cross of Idaho (BCI), where they had the Last 8% Culture System. By giving team leaders ownership over culture on their teams, they experienced actual cultural change. According to Janice Baker, CHRO at BCI, "Culture sits at the team level… HR does not drive culture, leaders drive culture."

When culture is driven by the people who live it day in and day out, then culture really exists. People care more, they are more motivated, and more dedicated to seeing the culture succeed. Empowered teams who get to define their own culture are more innovative, more engaged, and more likely to reach their objectives.

The Evolving Role of CHROs in Shaping Organisational Culture

Nowadays, the job of the CHRO has changed. CHROs no longer sit in the back room handling only payroll and compliance; instead, they are active influencers of organisational culture. They are no longer simply managing HR—they are actually shaping and developing the culture of the organisation.

CHROs recognise that culture cannot be forced. They recognise that in order to get culture to stick, they must empower leaders at all levels to lead the cultural shift in their teams. This is about arming leaders with the tools and guidance they require to lead with conviction, facilitate communication, and establish trust.

One of the most important tasks for a CHRO is to provide leadership development initiatives that enable team leaders to develop skills for influencing culture. This involves developing emotional intelligence, communication, and conflict resolution skills—critical skills for creating an open, collaborative, and high-performing culture.

But CHROs don't exist in HR alone—they sit down with the C-suite and boards to ensure that culture is in support of business strategy. The aspiration is that culture is for long-term success and not merely a buzzword. CHROs today have a seat in the boardroom, and the organisation's culture is considered seriously as a performance driver.

CLOs: Architects of Learning and Development

As businesses expand and mature, so has the CLO's role. CLOs are no longer concerned with training programs alone—today, they are designing how learning is infused into the very culture of the organisation.

The role of a CLO is to connect learning and development with the company's cultural objectives. They facilitate a growth mindset shared throughout the organisation with continuous improvement, flexibility, and teamwork.

Learning is not something that occurs exclusively in formal training sessions. CLOs make sure learning is infused in day-to-day work, motivating workers to develop, learn new skills, and accept new challenges. This develops a culture of inquiry and personal development that makes employees valued and engaged.

CLOs also have a vital role in ensuring that the learning initiatives of the company are consistent with its long-term business objectives. Whether leadership development, digital transformation, or innovation is being emphasised, CLOs ensure employees possess the skills they require to thrive and help the organisation prosper in the future.

Boards: From Oversight to Active Participation in Culture

Boards previously were primarily concerned with governance, compliance, and supervision at the high level of strategy. But in the modern world, boards are increasingly getting actively engaged in defining culture. They are not simply "overseers" anymore—they are cultural stewards, assisting in making sure that the organisation's culture is aligned with its values and objectives.

Some of the ways boards are becoming more engaged include focusing on talent strategy and succession planning. They see that leadership teams embody the values of the company culture and are dedicated to developing it throughout all levels. Boards are also holding the C-suite responsible for the cultural outcomes and making sure that cultural performance is incorporated into the overall strategy.

Boards also have a stronger emphasis on diversity, equity, and inclusion (DEI), now viewed as an essential component of a company's culture. Boards make sure that DEI efforts are pursued proactively and are ingrained in the company's culture, including inclusive hiring, employee resource groups, and fair opportunities for all employees.

Opportunities and Challenges in Creating a Team-Centric Culture

Although a team-centric culture has tremendous potential, a change from the conventional, top-down structure can be difficult. There's a need for patience, effort, and openness from the entire organisation. But the payoff—more innovation, collaboration, and flexibility—is well worth it.

Challenges:

Resistance to Change: Moving away from a control-oriented model can provoke resistance, as employees and leaders accustomed to controlling may resist giving teams responsibility for developing culture. It takes strong leadership and honest communication about the long-term benefits to overcome this.

Ensuring Alignment: While it is necessary to empower the teams, it is also crucial that all the teams be aligned with the company's strategic vision. Without direction, teams may have their own set of cultures, and this divergence within the company will be bad for the company's growth. 

Inconsistent Culture: Team-led cultures, though, can cause silos or broken-up cultures. To prevent this, there needs to be a framework designed which allows teams to lead their culture without the loss of consistency of fundamental values across the organisation.

Opportunities:

Greater Innovation: Enabling teams to lead culture promotes creativity and problem-solving, which allows teams to respond quickly to issues and innovate in a way that a command-and-control, top-down style of leadership cannot.

Higher Employee Engagement: When employees help create their working environment, they're more likely to feel valued and committed, leading to greater satisfaction and productivity.

Better Collaboration: Since team-oriented culture fosters open communication, it makes collaboration stronger, ultimately leading to improved performance across the company. 

Conclusion: Empowering Culture at Every Level

As we’ve seen, the traditional top-down approach to shaping culture just doesn’t cut it anymore. Today’s best cultures are empowered, adaptive, and team-driven. The most successful cultures come from the collective effort of CHROs, CLOs, boards, and the C-suite.

The key learning? Culture is not something that occurs top-down—it's something which happens at the team level. By investing power to drive the culture within their teams in leaders and employees, organisations can create a culture that is authentic, innovative, and aligned to business goals.

The organisational culture of the future is all about cooperation, empowerment, and trust. Those who understand this will succeed in building a culture that will deliver sustained success.

Our Directors’ Institute - World Council of Directors can help you accelerate your board journey by training you on your roles and responsibilities to be carried out efficiently, helping you make a significant contribution to the board and raise corporate governance standards within the organization.