An organization’s culture determines staff interactions and how business decisions are made. Let’s face it, most of us spend more time with co-workers then our own family. Therefore, a friendly environment should be every organization’s goal. However, should staff be treated as family? In a family-friendly culture, staff tenures tend to exceed 20 years. During this time, staff become bonded and practices may be developed to ensure job security. This type of culture is common in the nonprofit arena because their mission is to serve people and their communities.
Here are a few common practices in this type of culture:
- Automatic cost of living adjustments regardless of performance.
- Job descriptions tailored to fit skill sets rather than align staff to appropriate roles as needed by the organization.
- Employment of additional staff rather than implement or update technology.
- Alliances with staff concerns rather than to leadership and its organizational goals.
- Staff befriending board members which prevents management from taking necessary actions.
“We have been doing it this way for years! If it ain’t broke, why fix it?”
In this environment, decisions are not based on policy but on how it will affect staff. With this approach, the organization is at risk for unintentional and/or intentional errors due to inadequate internal controls and collusion. As new staff or accounting consultants make recommendations for change, you may hear the following:
- If automated, what will staff performing these tasks do?
- We have been doing it this way for years! If it ain’t broke; why fix it?
An organization may be able to survive for several years without improving its outdated processes. However, a change in the economy can drastically reduce its revenue. In most cases, the organization was not getting timely data due to manual, inefficient processes and ends up in crisis management.
Summary: Maintain a “friendly-business” culture to promote good working relationships and adopt practical business policies. Learn more about other cultures.
Nadine A. Harris, CPA, has expertise in working with distressed organizations. Book an appointment today! If you are not ready to move forward, stay connected with us to learn more about Transitional Accounting and other ways we may be able to assist you.