Corporate Culture Audit: What to Expect During an Audit

Corporate Culture Audit: What to Expect During an Audit

by | Sep 23, 2019 | Corporate Culture, Corporate Investigations

corporate culture audits

Pervasive internal issues are the malignancies that contribute to the decline of any corporation. While they come in many shapes and iterations, issues like communication, employee engagement, and employee relations can quickly derail a corporation’s mission. That’s why corporations across the country are electing to undergo corporate culture audits in order to get a full picture of what the internal issues are so they can make concentrated efforts towards improving their business.

No two culture audits will ever be the same—which is as it should be. Every company or organization is fundamentally different from one other, not only due to its structure and size, but because no workforce should be evaluated with the same measuring stick as another. It’s imperative that the context of every single corporation be fully explored. Full context can include, but is never limited to things like corporate mission, vision, values, internal operations, structure, and leadership.

Undergoing corporate culture audits is the first real step in addressing pervasive issues within the workplace. Think of it as an annual physical or checkup with a physician for your business. When you go to the doctor, you undergo an examination, and the specialists run tests in order to determine how healthy you are—a corporate culture audit is no different. A corporate culture auditor comes in and evaluates the level of functionality within your corporation so you can start implementing strategies to improve and grow your business. Here are some things that a corporate auditor might look at when they evaluate a corporation or organization:

  • Is everyone in the company invested in the same things?
  • What are the valued differences between your corporation and the competition?
  • What are the key measures of success within your company?
  • What is the functionality of the leadership in place versus the leadership required for success?
  • What are the environmental factors that are contributing to the decline in culture?
  • What is the history of your company’s culture from its foundation?
  • What are the subcultures that have formed in your organization and what is their role within the company?

Corporate culture audits usually begin by speaking to leadership. As the old adage goes, “The fish stinks from the head.” Many problems within an organization can be traced back to problems with leadership, and corporate culture auditors evaluate from the top down. Even if a CEO or manager is engaged in supervision of daily operations, they may still be making daily mistakes that contribute to stalls in the process.

Once leadership has been evaluated, auditors turn their attention to internal operations. This involves looking at the chain of command, the productivity flow (how the integral processes move from employee to employee), and the quality of communication throughout the company. This might involve interviewing department heads, reviewing meeting minutes, and evaluating the environment of the workplace. This step is crucial, because regardless of the leadership or employees in place, if the ecosystem of the workplace is flawed, it can be difficult for even the most efficient, engaged employee to achieve success.

Evaluating the environment and internal operations is tantamount to establishing a bulletproof process for success—leaving the workforce as one of the final pillars to be examined by the auditor. When you seek a comprehensive picture of your employees’ level of engagement, it’s important for auditors to identify the subcultures that are either contributing or derailing your company’s mission and values. For example—there might be a cluster of apathetic employees, who are not only disengaging together, but their behavior actively encourages other employees to exhibit the same habits. This kind of apathy can be a cancer in your corporation and may spread to other parts of your workforce, further contributing to the decline of business.

Most importantly, at the conclusion of the audit, an investigator will prepare a detailed report with very explicit recommendations for how to fix the problems within the corporation or organization. This could include items such as the termination of toxic employees, the revitalization of internal operations, and necessary changes to a brick and mortar locations for increased security or higher accountability. Once the audit is complete, the burden of change lies with leadership to become beacons of change within the internal structure. Corporate culture begins to improve when leadership enforces changes from the top, allowing their example to trickle down through the organization in the form of higher accountability and increased engagement.

If your corporation is suffering from a corporate crisis, don’t hesitate. Corporate culture audits are pulling more and more companies back into the black every day. Even if the crisis seems relatively minor, it could be symptomatic of a larger problem within your organization. Call Lauth Investigations International today for a free quote on our brand-new Corporate Culture Audit (CCA) program. Our dedicated and qualified staff composed of former military and law enforcement officers will get to the bottom of your internal problems. With Lauth Investigations International, you can expect hands-on, comprehensive services, detailed reports, and expert recommendations. When it comes to your business or organization, you should only expect facts, not fiction.

Corporate Crisis: Contextual Crises within Major Retailers

Corporate Crisis: Contextual Crises within Major Retailers

by | Sep 16, 2019 | Corporate Culture, Corporate Investigations

With retailers like Walmart, Kroger, and Amazon at the forefront of consumer watchdogs, the conversation around corporate culture and how it affects business continues to become inwardly focused. The nature of capitalism and supply-and-demand business models sometimes stand in the way of true reform when it comes to some of the nation’s most profitable corporations. Despite major retailers like Walmart and Kroger vowing to improve culture in several arenas of their business, the actual enforcement of these new “policies” has employees feeling lukewarm. 

Walmart has recently been at the forefront of several different types of corporate crisis. Most notably, the tragic active shooter event at a Walmart in El Paso, Texas that killed 20 people and left dozens more injured. This horrible event is an example of a contextual corporate crisis, in which external events directly affect the public’s perception of the company. While contextual corporate crises typically have little to do with internal operations, the ever-growing epidemic of gun violence in the United States has CEOs and leadership of large retailers like Walmart rethinking their strategies. Since the shootings, Walmart CEO and President, Doug McMillon has announced the retailer will now discontinue sales of ammunition in their stores for handguns and military-style firearms like AR-15s. More notably, McMillion also said the company would “respectfully request that customers no longer openly carry firearms into their stores” with the exception of law enforcement. For many in the nation, “respectfully requesting” customers not openly carry in their stores is not enough, but it is symptomatic of changes in a capitalist society. 

Following the tragedy at El Paso, eight more stores received threats of varying specificity. In the wake of the statement by McMillion, gun rights activists are already reporting individual stores are not enforcing their “respectful request” to not openly carry in their stores. David Amad, the vice president of Open Carry Texas, has reported members of the organization had openly carried in their local Walmart and not a single member was asked to leave, despite their visible firearm. When asked about it, Amad was quoted as saying, “They’re ducking the issue. They are trying to get the gun haters to leave them alone, while at the same time leave us alone when we carry in their stores.” 

When it comes to improving the culture and perception of a company in the public eye, there can be no room for soft enforcement of policy. Revised, enforced policies are how companies improve their culture, and no one knows that better than the employees who are seeing internal operations every day. According to the New York Times, “Walmart employees are instructed not to obstruct peaceful shoppers from openly carrying guns in the stores…But if an employee or customer feels unsafe, the store workers should call law enforcement.” 

What we know about the cycle of good corporate culture indicates that when employees feel valued, they remain engaged in operations and contribute to the overall improved health of the company. It is not a leap at all to assume employees who do not feel safe in the workplace do not maintain high engagement in daily operations. This is a corporation that is already the subject of gratuitous coverage involving internal issues, such as compensation, work conditions, and how toxic corporate culture continues to pervade within the organization.  Now the soft enforcement of no open-carrying in Walmart stores may cause employees to further lose hope that the retail giant will ever make meaningful changes within the organization. Research has shown, as the workforce continues to age, corporations will have no choice but to improve their corporate culture, or risk a consistent pattern of turnover and decline in profits. Glassdoor reported millennials are the largest generation within the workforce currently, and they are the prospective employees who will make unprecedented choices in their employment, favoring healthy corporate culture over high rates of compensation. If corporations wish to retain otherwise dedicated employees for the continued growth of their organization, they’re level of integrity in changing their corporation’s culture must have a stronger resolve.