By Peter J. Thompson
Each week, the Financial Post profiles one winner of Waterstone Human Capital’s 2008 10 Most Admired Corporate Cultures program. This week, Gordon Nixon, chief executive and president of Royal Bank of Canada, told Sanam Islam how the bank demonstrated excellence in the five areas used to evaluate companies nominated for the program.
Company: Royal Bank of Canada
CEO: Gordon Nixon
Number of employees in Canada: 56,000
Number of employees worldwide: 80,000-plus
Annual revenue: $21.58-billion
Vision and leadership In 2004, RBC’s leaders developed a “Client First” corporate vision to improve performance through restructuring, streamlining processes and rewarding employees. “This strategy transformed the organization and revitalized our performance, and it continues to guide and inspire our progress,” Mr. Nixon says.
The Client First vision is supported by RBC’s corporate values of service, teamwork, responsibility, diversity and integrity. With the current tur- moil in the markets, Mr. Nixon says leaders have been communicating more with their employees about the situation and what needs to be done. Cultural alignment, measurement and sustainability The bank assesses corporate culture through an organization-wide survey that measures employee engagement and support for the company’s vision and values.
“The survey links how well employees are aligned to what matters most to RBC and how well RBC is delivering on what matters most to employees,” Mr. Nixon says. Survey findings are shared with all employees, and local and corporate action plans are developed based on the results. After the action plans have been implemented, a follow-up pulse survey assesses progress. Rewards and recognition “It’s important that recognition and reward is aligned with what we are trying to achieve,” Mr. Nixon says.
RBC runs a performance-based recognition program that is designed to provide quarterly individual and team awards, in-the-moment appreciation awards and annual awards,including a week-long convention for 800 top winners and their partners. Managers also give employees informal recognition and appreciation throughout the year.
Corporate performance RBC is the largest bank in the country, with $637-billion in assets as of July 31, 2008. In fiscal 2008, the bank continued to maintain a strong balance sheet and generated earnings of more than $4.5-billion despite difficult market and economic conditions.
“I think one of the best measures of the effectiveness of our corporate culture is our performance as a company,” Mr. Nixon says.
A strong culture of collaboration and co-operation are essential in allowing employees to leverage RBC’s strengths for the company’s clients across the world, he adds.
Social responsibility Corporate social responsibility has been part of the company’s Code of Conduct since 1980. “We believe that a company’s value cannot be judged solely on its financial performance, but should include a longer-term view of issues that affect the company’s daily operations and overall sustainability,” Mr
Nixon says. RBC is one of Canada’s largest corporate donors, donating $53-million in 2007, and the largest supporter of United Way in the country. It also supports community events, art exhibitions, theatre performances and athletes through sponsorship. The bank also started the Blue Water Project in 2007, which will provide $50-million over 10 years to support watershed protection and access to clean drinking water.
The company encourages individual volunteerism through its “dollars for doers” program, which awards
$500 to employees who volunteer 40 or more hours a year.
