Corporate Boards must prioritize Strategic Planning and Culture as foundational elements of organizational health. A clear strategic direction, aligned with a strong, positive culture, creates an environment where employees feel valued and engaged. According to McKinsey, companies with engaged employees see a 21% increase in profitability. Boards should work closely with executive teams to define and communicate the organization’s mission, values, and strategic objectives, ensuring these elements are integrated into all aspects of the organization. This includes making decisions that reflect the organization’s values, even in challenging times, which in turn reinforces a culture of integrity and accountability.

Boards should also ensure that the organization has robust mechanisms for measuring and monitoring culture. This might involve regular employee surveys, feedback mechanisms, and other tools to gauge employee sentiment and engagement. Actionable insights from these tools should inform strategic decisions and operational improvements. Furthermore, Boards should hold the CEO and executive leadership accountable for fostering a positive organizational culture, linking this directly to performance evaluations and compensation.

Real-world examples include companies like Google and Salesforce, which consistently rank high on employee satisfaction surveys. These organizations have Boards that actively oversee and participate in culture-building initiatives, demonstrating a top-down commitment to employee well-being.

Risk Management is another critical area where Corporate Boards must assert their influence, especially concerning employee well-being. This includes overseeing the development and implementation of comprehensive health and safety programs, mental health initiatives, and policies that support work-life balance. In the wake of the COVID-19 pandemic, organizations have had to navigate unprecedented challenges related to employee health and safety. Boards that proactively addressed these issues by implementing flexible working arrangements, enhancing health benefits, and providing support for mental health and well-being saw less disruption and were better positioned for recovery.

Corporate Boards should ensure that the organization’s Risk Management framework includes a focus on employee well-being. This involves not only compliance with health and safety regulations but also adopting best practices that exceed statutory requirements. For example, Deloitte’s 2020 Global Human Capital Trends report highlights the growing recognition of social and emotional factors in organizational health. Boards should advocate for investments in health and well-being programs that address these broader aspects, recognizing their impact on productivity, employee retention, and ultimately, organizational resilience.

Companies like Unilever and Microsoft offer compelling case studies. These organizations have implemented comprehensive well-being programs that include mental health support, flexible working policies, and health and wellness initiatives, with strong oversight and support from their Boards.

Finally, Corporate Boards have a responsibility to oversee Performance Management and Development systems that support employee growth and well-being. This includes ensuring that performance evaluations are fair, transparent, and aligned with the organization’s strategic objectives. Boards should advocate for development programs that offer employees opportunities for learning and growth, recognizing that investment in human capital is critical for long-term success.

Moreover, Boards should ensure that Performance Management systems are designed to support a healthy work environment. This means moving away from purely financial metrics and incorporating measures of employee engagement, satisfaction, and well-being. By doing so, Boards can help create a more holistic view of organizational health that values employee contributions beyond just financial performance.

A notable example is Accenture, which overhauled its Performance Management system to focus more on continuous feedback and development, rather than annual evaluations. This shift, supported by the Board, reflects a broader understanding of the importance of nurturing talent and supporting employee well-being as key drivers of organizational success.