The role of culture in business: A lesson from the CrowdStrike incident

The incident: A wake-up call

An update to CrowdStrike’s Falcon Sensor software, a sophisticated Endpoint Detection and Response (EDR) system designed to prevent cyber-attacks, inadvertently caused catastrophic disruptions across multiple industries globally. In South Africa, it impacted companies such as Capitec and Absa. This failure was not just a technical glitch — it highlighted deeper cultural issues within the company.

This incident is a big lesson for businesses worldwide: the culture within a company is not just an important issue, but a key part that helps its operations, new ideas, and overall success.

The importance of a diverse, equitable, and inclusive culture

A diverse and inclusive culture brings together individuals with varied perspectives and experiences. This diversity fuels creativity and innovation, allowing companies to solve problems in novel ways and develop groundbreaking products. When employees feel valued and included, they are more likely to contribute their best ideas and efforts.

A fair and inclusive culture fosters a sense of belonging among employees. When people feel respected and valued for who they are, they are more engaged and committed to their work. This reduces turnover and ensures that the company keeps its top talent, which is crucial for long-term success.

A supportive culture encourages employees to collaborate and trust one another. This is essential in times of crisis, like the CrowdStrike incident, where quick, coordinated responses are needed. Companies with strong cultures are better equipped to handle setbacks and recover swiftly.

Lessons from the CrowdStrike incident

The CrowdStrike failure underscores the dangers of prioritising growth and shareholder value over the health of the company culture. 

Businesses should take note of these key points:

Prioritise quality and accountability:

Rapid growth should not come at the expense of quality. Companies need robust quality assurance processes and should hold themselves accountable for the products they release. This includes investing in skilled personnel and allowing them the time and resources to ensure the reliability of their work.

Invest in employee well-being:

Employee satisfaction and well-being should be at the forefront of corporate priorities. This means creating a work environment that supports work-life balance, recognises employee contributions, and addresses their concerns. A content workforce is a productive and innovative one.

Embrace transparency and communication:

Open communication channels are vital. Employees should feel comfortable voicing their ideas and concerns. Transparent decision-making processes build trust and foster a collaborative environment where everyone feels they have a stake in the company’s success.

Adopt a long-term perspective:

Companies should balance short-term gains with long-term sustainability. This involves making decisions that may not yield immediate financial returns but contribute to the company’s longevity and reputation.

Moving forward: Building a culture of excellence

For South African businesses and others around the world, the CrowdStrike incident is a powerful reminder that culture is not just a buzzword, but a critical component of business success. A diverse, equitable, and inclusive culture is the foundation upon which companies can build innovative, resilient, and successful companies.

The lessons from CrowdStrike are evident: culture is crucial, and it forms the foundation of lasting success.