Why culture must report to the CEO, not HR

Executive overview

Most companies file culture under HR alongside compliance and vacation policies. That's the wrong org structure. Culture — the people pulse, core values, empathy, and energy — belongs as a direct CEO responsibility.

Split the people function in two: administrative HR reports to finance; the head of culture reports to the CEO.

CEO ownership of culture

• CEOs should have no more than five direct reports; culture is one of them
• Administrative HR (compliance, policies, vacation) belongs under finance
• The head of people — "the head of giving a s*** about people" — reports to the CEO
• Culture is intentional; it must be designed, not delegated
• Cameron Herold used MBWA (management by walking around) at 1-800-GOT-JUNK — scheduled calendar time to connect with staff across 60,000 sq ft of office space

Building a cult-like culture

• Vulnerability at the top signals permission for the team to go deep
• Landmark Forum (a 2.5–3 day personal development program) cited as a high-impact team investment
• Chip Wilson required every Lululemon HQ employee — and all outside agencies — to complete Landmark Forum
• Warning people in advance that it "can be a little culty" is the right approach; the depth of skills gained is worth it
• Caring about employees' personal lives and personal dreams makes them better performers at work