The cornerstone to a functioning and effective internal control system is the tone at the top. A written code of ethics or conduct can simply be copied from another organization; however, the essence of an authentic tone at the top, in the context of employees’ perceptions of executive management and board, can take years to raise to a desired level. For the tone at the top to be effective, it should be perceived by employees as an expectation to excel in performance in all areas, which is assuredly far more motivating than an emphasis on compliance with law, rules, regulations and policies.
As in other arenas of life, a slip or misstep in a moment of time can quickly undermine a life-long journey to build positive perceptions concerning management’s reputation, integrity and apparent attitudes about performance expectations. Let’s not overlook the importance of the “employee engagement” factor as a significant interface with an organization’s tone of the top.
All things equal, management’s soft skills and communication skills will differentiate two organizations in terms of employee’s perceptions about the tone at the top. It helps to have an outside coach, because like work-class athletes, being effective in taking performance to the next level can be a function of having a good coach. Coaches are also valuable in helping all employees set realistic performance goals and targets. Also, most organizations can benefit from an enterprise-wide audit of employee engagement, performance levels, culture and employees’ perceptions of the tone at the top. If your organization is hesitant to go enterprise-wide, start with one or two areas and expand the size of the net year-over-year until the net spans the enterprise. It’s never too late to start.