Culture may feel intangible, but its impact is not. It shows up in how decisions are made, which behaviours are rewarded, whether people feel able to speak up and, ultimately, how an organisation performs.
Culture at the Edge: when values, behaviour and reality don’t match
Aligning amition with reality
When what an organisation says and what people experience are aligned, culture can support performance and help people navigate change. When they diverge, the consequences can extend to risk, reputation and trust.
At a recent webinar Culture at the Edge: When Values, Behaviour and Reality Don’t Match, run in conjunction with the School of International Financial Services (SIFs), Harriet Rumball, Investor and Sustainability Communications Director at Black Sun Global, and Amity Fisher Strategy Director, Research & Insights Lead at People Made, both part of Positive Change Group, explored how organisations can understand and report on the culture they have, define the culture they need and recognise when the two begin to drift apart.
Culture is what happens when no one is looking
Values only tell part of the story. Culture is revealed through the everyday choices people make: what gets prioritised, rewarded or tolerated, and what people feel able to challenge.
Understanding it starts with three key questions:
- What kind of culture do we want?
- How is the culture showing up today?
- Where are the gaps and what needs to change?
The starting point is the business ambition: where is the organisation trying to go, and what behaviours, mindsets and ways of working will help it get there?
From there, it is about understanding people’s real experience, through engagement data, interviews, focus groups, listening and what happens day to day. This helps identify where the current culture supports the organisation’s direction and where it gets in the way.
The focus is not on trying to change everything. It is on identifying the areas where a shift in culture will make the biggest difference.
Look at culture from different angles
In their work with clients People Made tend to assess culture through four different lenses:
- How we show up – collaboration, connection and how people interact.
- How we achieve – performance, growth and what enables people to deliver.
- How we lead and decide – leadership, decision-making and accountability.
- How we adapt and grow – openness to change, innovation and learning.
These lenses don’t operate in isolation, they all overlap and together, shape the culture people experience. They provide a more useful way to ask where an organisation is strong, where it is misaligned and what needs to shift to support its desired direction.
Once that picture is clear, the next question is how to evidence it and communicate it clearly.
Culture: a governance priority, not a “nice to have”
For UK listed companies, culture is a core governance responsibility. The UK Corporate Governance Code expects Boards to establish purpose, values and strategy, assess and monitor culture, and take action where behaviours or practices fall short.
That requires Boards to look beyond what is written in a values statement or captured in a survey. They need to understand the evidence of how culture is actually experienced, by combining workforce insight, relevant people and conduct data, direct engagement and appropriate independent challenge. They must identify where there are areas of concern and how the organisation is responding.
Reporting is an important part of that accountability. Good reporting does more than describe the culture an organisation wants. It gives stakeholders insight into the evidence behind it, the areas where reality does not match intention and the action being taken in response to feedback.
The aim is not to present a perfect picture. It is to show that culture is being actively understood, monitored and addressed.
Culture does not stand still
Even a well-established culture can shift as leadership changes, strategies evolve, incentives move or organisations respond to new pressures. That makes culture an ongoing process, not a one-off exercise.
During the webinar examples were provided of what can happen when culture drifts and the benefits of getting it right. There is a clear business case for getting the alignment right with a compelling statistic from the Harvard Business Review shared which found a 20–30% performance advantage for companies with strong cultures.
The point is not simply to have a ‘good’ culture. It is to have a culture that is aligned with where the business is trying to go and supports people in delivering it.
Culture should be more than words
Culture shapes how your strategy is delivered, how people experience the organisation and how stakeholders perceive it. Getting it right starts with understanding where you are today and being clear about where you need to go.
At Positive Change Group, our experts can help you define, embed, communicate and report on culture, connecting what you say with what people experience and what the business needs to achieve.
Want to understand what your culture is really telling you? Get in touch with our team.