Changing organisational culture is often necessary for long-term success, but it can be difficult and time-consuming due to deep-rooted values and employee resistance.
Reasons for Changing Organisational Culture
Organisational culture is the shared system of values, beliefs, attitudes, and behaviours that shape how employees interact and how work gets done. Over time, this culture may become misaligned with business goals or external demands. In such cases, deliberate cultural change becomes necessary.
1. To Improve Organisational Performance
One of the most common reasons businesses seek to change their culture is to improve performance across key areas such as productivity, innovation, and customer satisfaction.
Low morale and motivation: If employees feel disengaged or undervalued, performance typically suffers. A culture shift towards recognition, involvement, and empowerment can increase motivation.
Lack of innovation: Cultures that punish risk or prioritise tradition over experimentation often stagnate. Moving towards a more innovative culture encourages creativity and calculated risk-taking.
Poor collaboration: A siloed culture where departments operate independently can result in inefficiencies and missed opportunities. A cultural shift towards openness and collaboration can foster better teamwork.
Weak customer orientation: If the business does not prioritise customer needs and service, it may face reputational and financial losses. A change in culture to one that centres customer satisfaction can lead to better outcomes.
Example: A retail company facing falling sales due to poor customer service might aim to embed a more service-oriented culture by incentivising positive interactions, retraining staff, and celebrating excellent service.
2. To Support Strategic Change
Strategic decisions often require new ways of working, thinking, and interacting. If the current culture does not support the new direction, change becomes difficult or even impossible.
Business expansion: A company moving into new markets—especially international ones—may need to foster a culture that values diversity, adaptability, and cross-cultural understanding.
Mergers and acquisitions: When two companies merge, cultural clashes are common. Harmonising values, systems, and behaviours across the new entity is essential to avoid dysfunction.
Digital transformation: New technologies often disrupt traditional ways of working. A shift towards a culture of continuous learning, experimentation, and agility becomes necessary.
Strategic reorientation: If a business changes its core focus (e.g. from cost leadership to innovation), the culture must align with new priorities such as creativity, speed, or quality.
Example: A manufacturing firm that decides to adopt lean production techniques would need to foster a culture of continuous improvement, accountability, and waste reduction.
3. To Respond to External Change
Businesses do not operate in a vacuum. Environmental factors such as regulation, technology, and societal expectations can require cultural change to remain relevant and compliant.
Regulatory pressure: Stricter laws around ethics, data protection, or environmental impact may require a shift to a more compliant and transparent culture.
Technological change: The rise of automation, artificial intelligence, and digital platforms may require employees to adopt new tools and ways of working—necessitating a culture of adaptability and learning.
Changing social values: Greater emphasis on sustainability, diversity, equity, and inclusion means that businesses must reflect these values in their culture to attract talent and customers.
Example: A financial services firm that faces public criticism over a toxic, male-dominated environment may need to rebuild its culture around inclusivity, accountability, and respect to regain trust.
Barriers to Changing Organisational Culture
Although the benefits of cultural change can be significant, the path is rarely straightforward. Several internal barriers can slow or prevent successful change.
1. Resistance from Employees
Resistance is a natural human response to change, especially when it involves identity, routine, or perceived security. Employees may resist cultural change for a range of reasons:
Fear of the unknown: Change introduces uncertainty, which can cause anxiety.
Loss of control: Employees may feel powerless in the face of top-down changes.
Threat to existing roles: New cultures may favour different skills, threatening current roles and hierarchies.
Loyalty to the old culture: Long-standing employees may have a strong emotional connection to the existing culture and feel that change undermines tradition.
Resistance can manifest in subtle ways such as passive non-compliance, negative attitudes, or low engagement.
Example: If a company moves from a formal, top-down structure to a flatter, team-based model, long-serving managers may resist sharing power or changing their management style.
2. Deep-Rooted Behaviours and Values
Culture is not just what is written in mission statements—it is what people do every day. Over time, certain behaviours and routines become habits that are hard to break.
Unwritten rules: Employees often follow informal codes of conduct that can contradict formal policies.
Legacy systems: Outdated IT systems, processes, or job roles may reinforce an old way of doing things.
Social norms: Peer pressure and group expectations make people conform to existing behaviours even if they conflict with the desired culture.
Changing culture requires unpicking these habits and replacing them with new ones, which takes time, consistency, and reinforcement.
3. Misalignment with Leadership
Leadership is the most critical factor in shaping culture. If leaders are not fully aligned with or committed to the cultural change, efforts will likely fail.
Lack of credibility: If leaders say one thing but do another, employees will not take the change seriously.
Mixed messages: Inconsistent communication or priorities across leadership levels can create confusion and cynicism.
Inadequate role modelling: Leaders must consistently demonstrate the values and behaviours they expect from others.
Example: A CEO who promotes transparency but makes decisions behind closed doors sends a conflicting message, undermining trust in the change process.
4. Poor Communication
Communication is not just about broadcasting information—it’s about creating understanding, trust, and involvement.
Ambiguity: If employees do not understand what the new culture means in practice, they cannot enact it.
Lack of rationale: Without clear reasons for change, employees may view it as arbitrary or unnecessary.
Top-down delivery: If communication is one-way, employees may feel excluded or disrespected.
Inconsistency: Mixed messages from different departments weaken the credibility of the initiative.
Effective communication must be clear, honest, and ongoing.
Strategies to Support Cultural Change
Successfully changing culture involves more than slogans or workshops. It requires a comprehensive, sustained approach that engages people and systems.
1. Leadership Change
Changing or developing leadership is often the first step in transforming culture.
Hire culture-fit leaders: Recruit leaders who embody the desired values and behaviours.
Train existing leaders: Equip managers with the skills and mindset needed to lead cultural change.
Lead by example: Leaders should consistently model the new culture in their language, behaviour, and decisions.
Tip: Leadership alignment should be monitored and reinforced at every level, from the boardroom to frontline supervisors.
2. Employee Training and Development
Education and skill-building are essential to helping employees understand and live the new culture.
Cultural onboarding: Induct new employees into the desired culture from the start.
Workshops and role-plays: Use interactive formats to bring abstract values to life.
Coaching and mentoring: Provide individualised support for behaviour change.
Performance feedback: Incorporate cultural expectations into performance reviews and development plans.
Note: Training alone is not enough—it must be reinforced through daily work and leadership support.
3. Internal Communication
Strong internal communication ensures that everyone understands the what, why, and how of the cultural change.
Vision clarity: Clearly define what the new culture looks like and why it matters.
Multi-channel delivery: Use emails, meetings, intranets, videos, and face-to-face discussions.
Dialogue spaces: Create forums for employees to ask questions, raise concerns, and contribute ideas.
Regular updates: Communicate progress, celebrate wins, and address setbacks honestly.
Example: A change campaign might include weekly email updates from the CEO, video testimonials from employees, and Q&A sessions with managers.
4. Aligning Organisational Structures
For culture change to stick, it must be embedded into the formal systems and structures of the business.
Recruitment: Hire people whose values align with the desired culture.
Reward systems: Incentivise behaviours that reflect the new culture.
Organisational design: Restructure teams and reporting lines to support collaboration, flexibility, or empowerment.
Policy updates: Revise rules, procedures, and KPIs to reflect new priorities.
Warning: If the formal structures contradict the desired culture, employees will follow the structures—not the slogans.
5. Reinforcement and Sustainability
Culture change is a journey, not a one-time project. It requires ongoing effort and reinforcement.
Time investment: Sustainable culture change typically takes several years.
Setbacks: Expect and plan for resistance, delays, and learning curves.
Celebrate progress: Recognise early adopters and small wins to build momentum.
Measure and adjust: Regularly assess cultural alignment through surveys, interviews, and observation.
Key message: Patience, persistence, and continuous reinforcement are critical to making cultural change real and lasting.
The Long-Term Nature of Cultural Change
Organisational culture is complex and rooted in both people and systems. It is not something that can be changed by issuing a new policy or holding a workshop. Instead, it requires:
Behavioural repetition: New behaviours must be practised repeatedly until they become habits.
Symbolic leadership: Employees watch leadership closely—consistency is vital.
System alignment: Culture must be reflected in rewards, promotions, policies, and everyday processes.
Adaptability: Even after successful change, the culture must remain flexible and evolve as the environment does.
In short, cultural change is a long-term, strategic effort—one that requires thoughtful planning, full leadership support, employee involvement, and systems that reinforce the desired behaviours every day.
FAQ
Organisational culture strongly shapes how employees perceive and respond to change. In cultures that value openness, trust, and communication, employees are more likely to engage positively and adapt quickly. However, in rigid, hierarchical cultures, change may be met with suspicion or passive resistance. Cultural norms guide what behaviours are acceptable, so if the existing culture discourages initiative or openness, employees may fear speaking up or experimenting with new approaches, slowing the implementation of change. The culture essentially sets the behavioural boundaries during transitions.
While cultural change can begin with shifts in values and behaviours, lasting transformation typically requires alignment with structures and systems. For example, if a business wants to promote collaboration but maintains strict departmental silos, the culture change is unlikely to take hold. Formal systems like performance management, recruitment, and reward mechanisms must reinforce the desired behaviours. Without structural change, there’s often a disconnect between what is said and how the business operates, which undermines credibility and progress.
Middle managers are critical to cultural change because they act as the bridge between senior leadership and frontline staff. They interpret and implement strategy, influence team behaviour, and reinforce daily practices. If middle managers support the change and lead by example, employees are more likely to follow. However, if they are disengaged or sceptical, they can become blockers, undermining the change effort. Training, communication, and involvement of middle managers in shaping the new culture are vital to success.
Cultural change can be measured through both qualitative and quantitative indicators. Staff surveys can assess changes in employee attitudes, engagement, and perceptions of leadership. Turnover rates, absenteeism, and customer satisfaction scores can also reflect cultural shifts. Additionally, performance metrics linked to new behaviours—such as cross-department collaboration or innovation output—can provide evidence of progress. Regular reviews, cultural audits, and 360-degree feedback allow businesses to monitor whether the desired culture is being embedded and where further adjustments are needed.
Many cultural change programmes fail due to poor execution, not poor strategy. Common issues include lack of leadership buy-in, failure to engage employees meaningfully, and misalignment between stated values and actual behaviour. If employees see hypocrisy—leaders saying one thing and doing another—they quickly lose trust. Inadequate communication, weak reinforcement mechanisms, and underestimating the time required also contribute to failure. Successful change depends on consistency, patience, and embedding the culture in every part of the organisation, not just policy documents.
Practice Questions
Analyse two reasons why a business might want to change its organisational culture. (10 marks)
A business may want to change its culture to improve performance, especially if it faces low productivity or poor customer service. Shifting to a culture that values accountability and innovation can boost motivation and outcomes. Additionally, culture change may be required to support strategic shifts, such as entering new markets or adopting digital transformation. In such cases, the existing culture may not align with the new direction, causing internal friction. Changing culture ensures that employee behaviour supports strategic objectives, making execution smoother and increasing the chance of long-term success.
Evaluate the challenges a business may face when attempting to change its organisational culture. (16 marks)
One major challenge is employee resistance, which can slow or block change. Staff may fear losing job security or disagree with new values, especially if they have strong ties to the existing culture. Deep-rooted behaviours and informal norms may persist despite formal efforts to change. Moreover, poor communication and lack of leadership alignment further complicate change initiatives. If leaders fail to consistently model new behaviours, credibility is lost. These issues make culture change a slow and uncertain process. However, with strong leadership, training, and communication, these challenges can be mitigated over time.
