ARLINGTON, Va., July 06, 2020 (GLOBE NEWSWIRE) — Investment organizations’ appreciation of the value created by effective organizational purpose and culture has grown considerably in the past five years, and its importance as a differentiator continues to rise, according to new research from Willis Towers Watson’s Thinking Ahead Institute, a not-for-profit member group; however, the research paper, titled The Impact of Culture, suggests that the implementation of cultural change across the industry still lags.
“Filling this gap between opportunity and execution presents considerable organizational challenges,” said Roger Urwin, co-founder of the Thinking Ahead Institute. “During this five-year study, conversations with investment organizations about how to generate sustainable performance from more effective cultures, which started at quite a low base, have improved markedly. There are now several investment organizations globally able to differentiate themselves with their purpose and culture. The factor most indicative of edge here is leadership commitment to elevating and actively shaping culture in the organization.”In a call to action, the Institute makes three recommendations for institutional investment organizations — both asset managers and asset owners — to build their value propositions around effective purpose and culture:Develop a unique organizational purpose to define client value and grow stakeholder trustDevelop, as a key management tool, a culture dashboard to track all cultural dimensionsCreate a common language and fact base for culture and have an aspirational target for itThe Institute also supports more use of incentive compensation to align culture and the addition of C-suite and talent officers to drive cultural change.The research includes a new model for defining culture and a framework investment organizations can use to assess and manage them. The model includes a reporting dashboard with metrics across 10 dimensions of culture, ranging from client-centric and people-centric elements as well as leadership attributes to sources of competitive edge, such as innovation, inclusion and diversity, and transparency.“We measure what we do because we can, but we can measure more than the activities we currently do. The Institute’s culture model and dashboard represent an attempt to capture a source of considerable comparative advantage for those who recognize the value in measuring culture as a step in the path of cultural improvement,” added Urwin.The paper points to organizational culture as the nexus for increasingly common conversations about organizational purpose, inclusion and diversity, and sustainability.“Organizations that have an edge in these areas have been particularly well positioned to address stresses from the COVID-19 crisis and the recent social crises around racial injustice. In these abnormal conditions, strong culture has proved to be a huge blessing,” said Urwin.The research notes that the language used around culture in the industry, and its framing, remains limited. This contrasts with the growing weight given to asset manager culture assessments in the hiring and firing decisions overseen by asset owners and consultants. According to the research, five common organizational failings limit cultural quality in the industry:Insufficient regard for organizational purpose, beyond focus on short-term business resultsLow regard for understanding and assessing so-called soft or intangible factorsLimited development of the language, facts and artifacts necessary to communicate cultureLimited appreciation of how subcultures exist and interact in the organizationWeak engagement on culture in talent acquisition and developmentAs part of the Institute’s ongoing culture study, it is gathering data from investment organizations to explore their strengths and weaknesses and develop benchmarking to help drive up cultural standards in the industry.“Through the study, we have managed to identify best practice models of purpose and culture that stand out through good alignment with business strategy, strong connections with employees and consistent engagement with other stakeholders. We firmly believe best practices in purpose and culture management are critical to improving industry resilience and sustainability and outcomes for all stakeholders,” concluded Urwin.About the Thinking Ahead InstituteThe Thinking Ahead Institute was established in January 2015 and is a global not-for-profit investment research and innovation member group made up of engaged institutional asset owners and service providers committed to mobilizing capital for a sustainable future. It has 45 members around the world and is an outgrowth of the Thinking Ahead Group, which was set up in 2002. Learn more at www.thinkingaheadinstitute.org.About Willis Towers WatsonWillis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.Media contactEd Emerman: +1 609 240 2766
eemerman@eaglepr.com
Bay Street News