And why we need authentic values driven leadership now more than ever
Australians are reeling. After a horror and seemingly unending bushfire season, we’ve emerged into a pandemic with a third of the world now in lockdown. When it comes to leadership, emotions are raw, pretence is stripped away. It’s during periods of crisis that the true values of leaders and their companies are revealed.
On the television the other night, the owner of Brisbane’s 129-year-old Normanby Hotel wept as he related the agony of having to stand down his staff, who ‘were like family to him’. Revenue, he said, was secondary. Overcome with emotion, his values were laid bare. You can be assured this man’s reaction won’t be forgotten by staff or customers.
What happens when the stated values of a company aren’t the actual ‘lived values’?
Let’s look at the Dreamworld tragedy. The company’s vision was “To be Australia’s Most Loved Theme Park”. Their stated mission was “to create happy memories that last a lifetime” by living team values including great service, fun and celebration, safety and quality.
Yet in a shocking and sustained disregard for safety procedures, four people died on one of the theme park’s rides in 2016.
In a scathing assessment of Dreamworld’s management and maintenance of the ride, Coroner Mr McDougall said there was “ample evidence of the potential for a disaster of this nature”.
So what went wrong with one of Australia’s favourite theme parks? And was the stated value of ‘safety and quality’ secondary in the drive for increased revenue and shareholder value?
From www.dreamworld.com.au
General ignorance of proper safety
The coronial inquiry found that “general ignorance of proper safety and adequate assessments was a recurring theme throughout Dreamworld in many of the departments and reflects a systemic failure to ensure the safety of patrons and staff.”
Coroner James McDougall continued by saying such a “culpable culture” could only exist “when leadership from the board down are careless in respect of safety”.
In other words, the team value of safety and value was lip service only ... the culture stated in Dreamworlds mission statement sounded good, but only existed in theory, not practice.
The heavy COST of a TOXIC Culture
The Dreamworld tragedy was a catastrophic failure of brand promise. Confidence and trust have been lost in the public’s eye. Staff morale has plummeted. The deaths of 4 people in what was found to be a failure of safety procedures is something Dreamworld may never fully recover from.
This goes beyond brand failure and public perception. McDougall has also referred Ardent Leisure to the Office of Industrial Relations for possible legal prosecution as he reasonably suspects the company may have committed an offence under workplace law.
- Ardent Leisure could face fines of up to $3 million
- Individual executives are facing up to $600,000 and five years’ jail.
- External engineer, Tom Polley, has also been referred to the Board of Professional Engineers for failing to properly inspect the ride.
- Ardent logged a $21.8 million loss for the first six months of the 2016 financial year
- Ardent’s share price collapsed
Not to mention the knowledge key executives now have to live with that their culture that undervalued safety played a part in the deaths of 4 people.
At The Culture Doctor, we witness first hand the dangers of a toxic culture that ignores its stated values. Here’s some advice we’d give to Dreamworld’s Board of Directors
#1 Measure your real culture
#2 Measure it regularly
#3 Act on what you uncover
#4 Don’t confuse your aspirational culture with your REAL culture
#5 Execute a plan to bridge the gap between the real and the desired cultures.
In Dreamworld’s case, not doing these things didn’t just cost the company financially, people lost their lives.
Are you a leader?
Now is the time to reflect on what your true values are. Staff and customers alike are looking for authentic, decisive and consistent leadership. The world is watching. How you lead now will determine how well your company or business comes through this crisis.
We are experts in values driven workplace culture and have helped countless leaders identify their true values. Far from ‘fluffy or intangible’, values driven leadership has a direct effect on a company’s bottom line.
