Culture is advancing on the leadership agenda, but the gap in perception between senior management and the rest of the organisation has never been greater, a new study from advisory firm PwC shows.

PwC’s ‘2021 Global Culture Survey’, which canvassed the views of 3 200 workers worldwide, finds that culture is a source of competitive advantage and a strategic priority for senior leaders, but it has been deprioritised in the eyes of the rest of the workforce.

In the survey, 69% of global respondents – and 68% of South African respondents – say their organisation has been able to adapt over the past year and that their culture is a source of competitive advantage.

The data also shows that respondents who say their organisation has a distinctive culture are more likely to also see an increase in revenue and customer and employee satisfaction.

Three-quarters of senior management (72%) agree that their culture helps successful change initiatives to happen.

Globally, 73% of respondents who state that culture is a source of competitive advantage say making decisions quickly has either become easier or stayed the same during the pandemic.

In South Africa, 41% of respondents stated that making decisions quickly had become more difficult in their organisations as a result of the pandemic; 57% stated that coaching and developing talent had become difficult; and 35% said it was more difficult to collaborate with colleagues.

Conversely, only 57% of respondents globally who state that culture is not a source of competitive advantage found decision making easier or the same during the pandemic. In China, this percentage dropped to 38%, while in India it rose to 68%.

The global survey results demonstrate a clear divide between those who say their culture is distinctive and those who do not.

“Our survey results indicate that businesses with strong cultures tend to drive better business outcomes. It is notable that the majority of senior leaders credit much of their success during the Covid-19 pandemic to culture. They also agreed that top cultural priorities should include recruitment and retention, digitisation, health and safety and collaboration.

“It’s also clear from our survey that organisations with a distinctive culture found it easier to maintain performance and pivot if needed during the crisis. On the downside, our survey shows that, when culture is not a priority, certain ways of working are not as easy or successful as when culture is prioritised,” PwC people and organisation partner Dayalan Govender says.

DIVERGENCE IN ATTITUDES

The data shows that culture has been deprioritised in the eyes of the rest of the workforce.

In 2018, 66% of frontline workers believed culture was more important than strategy or operating model, versus 46% this year.

In South Africa, however, 60% of respondents stated that culture is more important to performance than an organisation’s strategy or operating model.

Similarly, there is a divergence in the way purpose is viewed by different staff levels, with 77% of senior management stating they feel a personal connection to the company’s purpose in contrast to just 54% for the rest of the workforce.

In South Africa, 83% of respondents said their organisation has a strong sense of purpose, and 74% said they have a strong connection to their organisation’s purpose.

Attitudes towards diversity, equity and inclusion (DEI) demonstrate the divide most acutely, with the data showing an average 20-point gap between the views of management and everyone else on DEI topics.

In South Africa, 72% of respondents said their organisations actively listen to differing voices and perspectives when making major decisions, even if it adds time and complexity.

Notwithstanding these positive notes, 41% of South African respondents felt their organisations could do more to improve DEI.

Three-quarters of senior management (71% global; 72% South Africa) feel that they can be themselves at work, against just 52% of middle management and frontline workers.

From the survey, 61% of senior management globally, compared with 63% of senior management in South Africa, believes their organisation encourages discussion on sensitive and uncomfortable topics, in contrast to 42% of middle management and frontline workers.

Finally, 69% of senior management (South Africa: 78% of senior management) believe that their organisation embraces flexibility and accommodates people with differing needs, versus 51% (South Africa: 71%) of middle management and frontline workers.

“Our data shows a widening gap between what leaders say about culture (particularly DEI) and what their people actually experience. It is possible for organisations to close this gap, though.

“As the past year showed, rapid transformation can be achieved with a targeted focus on a few critical behaviours,” Govender says.