The power of corporate retreats in strengthening culture

Tuesday, 01 October 2024

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    These experts explain how corporate retreats target company culture, prioritising team unity, revitalising communication and sharpening decision-making abilities. 


    According to Makinex chair Anthony Moss GAICD, corporate retreats are a tool to help boards and management gain new perspectives and thus make better decisions. Moss is also founder and chair of the CEO Advisory Board, the Executive Leaders Group, and founder and director of strategy consultancy Lead Your Industry.

    “You need to balance the value of getting away and having that fresh perspective and clear mind, against the pressure of being always on,” he says.

    Similarly, Andrew Lawson, a director and principal consultant at Best Practice Consulting, says, “By isolating the board from regular distractions and spending a significant time delving into the organisation’s strategy, the quality of any decisions is likely to be enhanced. Even with the demanding schedules of board members, corporate retreats offer several benefits. They foster team cohesion, enhance communication and strengthen relationships among directors. Relaxation activities can also reduce stress, leading to better decision-making, increased productivity and improved wellbeing.” 

    Align with objectives

    Vicki Macdermid MAICD is a director of EQiLead and the Petstock Foundation. She runs workshops with horses to unlock leadership potential. When asked about retreats, her first thought is Stephen Covey’s seventh habit of highly effective people — Sharpen the Saw.

    “In the absence of sharpening, the saw becomes blunt and you need to work harder, not better, to achieve results,” says Macdermid. “This is exhausting and expensive. To be the best, you need to pay attention to the four dimensions of renewal — physical, social/emotional, mental and spiritual. It means preserving and enhancing the greatest asset you have — you.”

    So what are the key ingredients that make up a good corporate retreat? Moss says two-day retreats for private companies twice a year works best for him. “The more frequently you run them, 

    the better they become,” he says. “The first day is not work-related. We do some kind of activity, perhaps a physical one, or bring in an external presenter. It’s not focused on specific roles. It’s more about getting to know each other. There is so much pressure on CEOs and directors to be decision- focused. I found that the retreats, and particularly that first day, are hugely beneficial. It takes them until midday of the first day to get out of their own heads.”

    Moss says there is a trade-off between time out of the business and refreshed thinking. “It becomes a group, instead of just individuals. The benefits are different perspectives, clearer thinking, focus and, if they’re a group, a team perspective.”

    He adds that retreats need to be properly set up and outcome-focused. Expectations should be managed in advance. “There also has to be an activity at the start that is unrelated to the content you’ll be talking about over the next day or two. It is a different way of thinking, so we engage our non-business-focused brain, clear the mind and become more open to alternative perspectives. That results in better decisions.”

    Hamilton Island in the Whitsundays, for example, includes a yacht cruise and a beach barbecue for mingling, sports and a scavenger hunt for team building, along with a conference centre for strategy meetings throughout a retreat.

    Align with objectives

    To achieve the best results, Lawson says it is vital to understand the purpose of the retreat and to align the topics and activities with the team’s objectives and dynamics. He advises not overloading the schedule, asking for input from the team in advance and having a plan for dealing with strong personalities in the group.

    To avoid retreats being seen as tokenistic or as a waste of money, Lawson recommends the purpose and objectives should be clearly defined, the team should be involved in the planning, and looking for cost-effective options like more modest venues or shorter retreats.

    “Also, ensure it is not just a talkfest,” he advises. “Action and follow-up are essential. Consider who you want in the room, the setting and processes you’ll use to invite different perspectives — and the frequency of such discussions.”

    From personal experience, Lawson believes activities like DiSC assessments can break down interpersonal barriers, foster stronger relationships and enhance teamwork. He says smaller, focused breakout sessions are ideal for tackling tricky problems and developing innovative solutions. Fireside chats and team dinners create informal spaces for deeper conversation and bonding, allowing for connections to form in a relaxed setting. Also, volunteer work can foster a sense of purpose and camaraderie through charitable activities that give back to the community.

    “A skilled facilitator is needed to draw out the discussion and manage the flow and timing of sessions,” he says. 

    Enable vulnerability

    Macdermid agrees, noting the facilitator must “get” the organisation and must be able to “hand the work back” so that directors are tasked, resourced, enabled and accountable to execute the outcomes. “In the absence of the latter, it can become disheartening and seem disingenuous when nothing changes as a result,” she says. “You cannot create bonding from one-off events. Bonding is a process and requires trust in each other and in the process itself. A retreat can only be seen as an intervention. It can precipitate the process, but you can’t leave it at that. It can be the environment to enable vulnerability, for board members to interact in different ways, but only where there is an environment of psychological safety.”

    Macdermid cautions against ignoring the differing preferences, biases and abilities of attendees and being culturally blind — for example, having an afternoon of golf for a demographic with no interest in it. She emphasises there should be the right amount of good fun. “Laughter is a leveller, it induces oxytocin and, therefore, deep learning.”

    Oliver Sheer, a director of Meetings & Events Australia (MEA) and managing director of Be Challenged, notes that organisations across a range of sectors are prioritising the holding of retreats.

    “One reason for this is that the psychosocial hazards that have been [fuelled] by virtue of remote and hybrid work are a compelling argument for bringing teams of people together to remind them of their belonging to an organisation and its values,” he says. “When we prioritise culture, we prioritise employee satisfaction levels and employee retention, reducing absenteeism and presenteeism. Company retreats are a meaningful way through which these goals can be approached through a non-hierarchical lens.” 

    This article first appeared under the headline 'Director Downtime’ in the October 2024 issue of Company Director magazine.  

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