The Top 3 Problems For CEOs In 2022

And a universal solution: Implementing a strong company culture

It’s not just another calendar year. CEOs are still recovering from the fallout of 2020 and 2021 and many are experiencing uncertainty as they gear up for the months ahead. New issues relating to maintaining a stable workforce and being nimble in the face of change overlay standard Q1 concerns about budgets and operations. 

Specifically, leaders may be wondering how to tackle three challenges:

1. Retaining and attracting top talent in today’s volatile employment market
2. Effectively managing and getting consistent performance from a remote or hybrid workforce 
3. Remaining competitive in a constantly evolving business environment

Most CEOs view these as concrete problems that require tactical resolutions. While the topic of company culture may have caught their attention, many don’t see it as part of their operational strategy. With so much to nail down, they may wonder why focusing on something as intangible as culture matters right now. 

Actually, the timing couldn’t be better.

The organizations that have fared the best throughout the pandemic strengthened their teams and remained competitive by focusing on how their people feel, think, and perform. In other words, they prioritized their company culture.
 

A strong culture maximizes an organization’s ability to succeed in any year. But having a vibrant company culture in the unprecedented period we’re experiencing now, is more critical than ever before. 

The Real Definition of Company Culture 

Many practical leaders hesitate to devote time to culture because they misunderstand what it is. For example, they might not buy into the notion that culture can solve problems because they associate it with feel-good perks like recreation rooms or pizza parties. Or they believe they’ve already addressed the topic by prominently displaying formal company values to motivate their staff. 

While they may be appealing, it’s clear that these things don’t solve an organization’s problems. And leaders who conflate them with culture understandably look elsewhere for tangible solutions. But they’re missing an important distinction. While fun benefits and company values are tangential to corporate culture, they don’t create it. 

A company’s authentic culture is reflected in the everyday conduct of the people who work there. It is defined by people’s attitudes about their jobs and how they interact with team members and the public. A healthy culture is evident when staff’s ongoing behavioral norms are positive and productive. 

Strong culture provides the backbone that supports and sustains a business. It enables top performance on a routine basis and holds organizations together in stressful times. Culture is so critical to a company’s success that it should be an intrinsic part of every leader’s business strategy.

The Universal Solution

Given the enormous impact of organizational culture on every facet of a business, implementing an effective culture initiative is a smart way to start the new year. It can provide a wellspring of solutions for business leaders staring down the challenges of 2022. 

Here’s how culture factors into the top three issues CEOs face this year.

#1: Retaining and attracting top talent in today’s volatile employment market

Accommodating remote and hybrid employees is essential for many employers embroiled in the newest battle for top talent. But the pandemic left workers craving more than flexibility in where and when they perform their jobs. 

People reassessed their priorities over the past several years as they waited out the health crisis. As a result, many began to seek different employers because they felt unfulfilled or were simply unhappy in their pre-pandemic roles. An increasing number of workers want to know that their daily responsibilities make a difference in their organization. When people feel purposeful, they derive more satisfaction from their jobs. 

A strong, supportive company culture comprised of positive behavioral standards is the most effective means to nurture and retain top staff.  It helps employees feel included, informed, and empowered to be their “best selves” so that they feel good about their contributions. 

And companies with outstanding cultures develop great reputations in the marketplace. Consequently, they lure the best young recruits as well as seasoned employees looking for greener pastures. Moreover, once people join a company with a superior culture, they develop a high level of engagement and are far less likely to look for something new.  

#2: Effectively managing a remote workforce

As many employees gained a better work/life balance in their new remote or hybrid jobs, their bosses experienced upsides, too. For example, they could engage a wider talent pool because they weren’t limited to local staff. And they could grow their companies without incurring additional real estate or equipment expenses. 

But the new work models also include challenges for both workers and their employers. 

Some organizations with WFH staff have experienced a dip in communication and collaboration. And many managers find it harder to train, coach, and guide their team members than when interacting with them in person. Companies must remediate these problems for remote and hybrid jobs to remain a good option for all. 

A clearly defined company culture can significantly improve the efficiency and vitality of remote or hybrid teams. A thoughtfully developed culture initiative will generate a “common language” that helps everyone understand “how things are done around here”—even if “here” is technically all over the place. 

Dynamic organizational culture eliminates operational inconsistencies and improves collaboration because everyone is on the same wavelength. It’s the glue that holds everything together.

#3: Remaining competitive in an evolving business environment

As companies continue to respond to pandemic-related issues, they’re also coping with a rapidly-shifting marketplace filled with an increasing number of sophisticated rivals. 

Organizations must be agile enough to change course as needed and different enough to distinguish themselves in a crowded business arena if they want to remain competitive in 2022. A healthy culture supplies the structure that allows companies to achieve both goals. 

Agility

Companies that surpassed expectations during the pandemic not only responded well to the changes that ensued—they created better strategies for the future. Of course, not all changes are as seismic as Covid, but many organizations fare poorly with the change of any kind. A corporate culture that leans on “the way we’ve always done things” is usually the source of this problem. 

Conversely, a company culture that prioritizes continuous improvement encourages people to be flexible and become creative problem-solvers. It allows them to see the opportunities that changes or even setbacks pose and find new ways to get things done.  

Differentiation

No matter how good a company's product, service, or value is, other businesses vying for the same customer base can easily duplicate these things. So how can leaders successfully differentiate their companies? They must first acknowledge that how their employees operate is more important than what their company sells or charges. 

Teams whose actions are guided by a vital core culture work seamlessly to keep things running smoothly. And they’ll do whatever it takes to provide outstanding experiences every time they interact with a customer. 

An exceptional organizational culture not only facilitates continuous high performance, but it’s also almost impossible to copy. Culture has the power to propel a company to the top of its field—and keep it there. 

David Friedman is the author of Culture by Design: How to Build a High-Performing Culture Even in the New Remote Work Environment. He also is Founder/CEO of CultureWise®, a turnkey operating system for small to midsize businesses to create and sustain a high-performing culture. He was the former president of RSI, an award-winning employee benefits brokerage and consulting firm that was named one of the best places to work in the Philadelphia region seven times. Friedman has taught more than 6,000 CEOs about work culture and led more than 500 workshops on the subject. With Sean Sweeney, Friedman formed High Performing Culture, LLC, based on the culture methodology Friedman created at RSI. Visit www.davidjfriedman.com Connect David Friedman