Committed to the values and culture
Amidst the social and traditional media pile-on to the Coldplay kiss-cam video, it was the statement issued by the company at the heart of the ‘scandal’, Astronomer, that stood out for me.
Responding to media requests for a comment, they said, ‘Astronomer is committed to the values and culture that have guided us since our founding. Our leaders are expected to set the standard in both conduct and accountability.’
Astronomer are not the first organisation to immediately distance themselves from an executive who has brought unwanted media scrutiny to their business. They are also not the first to make the link between leadership behaviour and culture.
That really started with Brian Dunn of Best Buy in 2012. Although not specifically stating ‘culture’ or ‘values’ - these concepts were relatively new in 2012 - the board indicated that Mr Dunn’s behaviour was the issue, stating instead (cryptically) ‘There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures.’
This was the way things happened up to 2012. Boards generally turned a blind eye to ‘indiscretions’ - be it interpersonal relationships, poor behaviour or anything else that could bring unwanted scrutiny to the organisation - unless, of course, results were poor or the scrutiny affected its reputation or share price.
From 2012 onwards our view of workplace culture and values started to change and forward-thinking boards started taking a more active role in safeguarding the culture and therefore, the reputation of the organisation.
By 2018 leaders were expected to demonstrate culture, values and behaviours not just talk about it.
This was something that the following senior leaders all fell foul of.
Lululemon Athletica CEO Laurent Potdevin lost his job in 2018. The board released a statement saying, ‘Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization's culture is one of the Board's most important duties.’
2018 also saw the resignation of Intel CEO Brian Krzanich who had stated in his final letter in the annual report, ‘Intel will continue to operate responsibly and with the integrity and transparency that has defined our culture.’
However, not long after, an internal investigation found he had a relationship with an employee, leading to his resignation. In a letter to shareholders, the board said, ‘Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the board has accepted Mr. Krzanich’s resignation.’
A final example would be that of former McDonald's CEO Steve Easterbrook, who was fired in 2019 for a consensual relationship with an employee. A contrite Easterbrook released a statement saying, ‘Given the values of the company, I agree with the board that it is time for me to move on.’
There have been many more since.
Of course, affairs of the heart are always tricky and it’s not for us to judge the actions or behaviour of others in respect of the relationships that they decide to have.
However, the Astronomer case is just the latest example in the last 10 years that should serve as a reminder to senior leaders of how important it is to publicly and privately practice what’s preached when it comes to values and culture.
Where once they were endeavours seemingly undertaken to ‘tick a box’, now they are standards that everyone must hold themselves to in order to demonstrate their commitment to the people that they serve, regardless of whether they are at work or not.
