organisational culture

By David Liddle

Workplace culture can be the greatest asset, or the greatest liability, an organisation has. Yet it is widely misunderstood, rarely talked about and routinely ignored. 

Managed well, culture is a potential source of riches. A healthy, happy and harmonious working environment results in more engaged, loyal and productive employees, and improved levels of innovation and creativity. 

However, as countless newspaper headlines have illustrated, when the issue of organisational culture is brushed aside, disaster often ensues. Reputations of high profile organisations, across the public and private sector, have been seriously damaged by allegations of bullying and harassment (McDonalds) and racism (Met Police), to name just a few recent examples. 

A shifting paradigm 

There are signs that the tide may be beginning to turn. In the recent Newton/Opinium report ‘Workplace Culture in the UK: A snapshot”, 40 per cent of respondents claimed there were active efforts to change workplace culture in their organisation. The research suggested that many initiatives were rooted in equity diversity and inclusion (EDI), focusing on ethnicity, gender diversity and employee wellbeing.   

The OC Tanner 2024 Culture Trends Report suggests that although employees will undoubtedly welcome these efforts to make their workplace a better place, what they really want is empathy coupled with supportive, sustained action. The research shows a significant disconnect between how caring organisations think they are, and how their efforts are perceived by employees. Nearly half of employees surveyed said they didn’t feel cared for by their organisation, even though 87 per cent of organisations felt they were demonstrating enough care. 

What’s clear is that at a time when organisations are negotiating unprecedented levels of political, economic and environmental instability, they can no longer rely on the old cultural paradigms.   

Success is no longer just about power and profit. Leaders need to develop fair, just, inclusive and high performing transformational cultures, where all employees are supported and encouraged to be the best they can possibly be.  

Making the business case 

Developing a transformational culture calls for the support and involvement of people from all levels of the business. Senior leaders, HR, line managers, unions and front-line employees all need to work together in pursuit of a common vision, shaping the policies and processes that will support the values and behaviours the business wants to espouse. 

Getting everyone on board relies on building a strong business case, which demonstrates the imperative for change and outlines the key steps the organisation will need to take. In my book ‘Transformational Culture: Develop a People-Centred Organization for Improved Performance’, I set out the Transformational Culture Model, a blue-print for a purpose-driven, values-based and person-centred workplace. 

Aligning a business case to this model, shaped around the following critical components, will help leaders build a compelling case for change:  

  • Vision and objectives: Define the organisation’s purpose and values. What are the key drivers for adopting a transformational culture? How does a transformational culture align with your wider corporate strategy and objectives? 
  • Situational Analysis: What are the strengths, weakness, opportunities and threats (SWOT) relating to your organisational culture? Who is currently responsible for shaping and managing the culture of your business?  How would you describe the current climate (the micro-cultures that make up your business) within your organisation? 
  • Evidence of the case for change: Do you currently measure the culture of your organisation?  What primary date do you have relating to areas such as the prevalence and cost of conflict, the incidence and costs of absence and attrition, data relating to engagement, well-being and inclusion, customer experience, brand and reputation, productivity and performance.  
  • Benchmarking: Examine best practices from leading organisations and professional bodies. 
  • Stakeholder analysis and impact assessment: Who are the key stakeholders in your organisation? What role will they play in the development of a transformational culture?  What impact will the transformational culture have on the stakeholder group?  
  • Implementation Plan: What does success look like? When will the transformational culture programme start? Where do you want to be in 12, 24 and 36 months? Develop a detailed roadmap with milestones, assigning responsibilities to ensure accountability. 
  • Resource allocation: What are the costs and resources required to support the implementation of a transformational culture? 
  • Anticipated benefits and Return on Investment (ROI): What are the potential benefits of adopting a fair, just, inclusive, sustainable and high-performance workplace?  How will the business benefit from reframing its policies and processes (i.e. disciplinary and grievance, bullying and harassment and performance management) and adopting restorative, dialogue-driven approaches to conflicts, complaints and concerns.   
  • Communication Strategy: How will you let your stakeholders know what you are doing? A robust plan for internal communication will help you maintain momentum and transparency. 
  • Resilience Planning: What are the potential blocks and barriers to integrating a transformational culture. Are you likely to encounter resistance from employees or resource constraints, for example? What strategies do you need to put in place to address these? 

Real-World Application  

Canterbury Christ Church University is one organisation that exemplifies this approach. As Margaret Ayers, Director of Human Resources and Organisation Development explains, a structured cultural transformation programme is helping the university achieve its inclusion and sustainability goals: “Transformational Culture is the tangible model to translate the things we say as an organisation into people’s lived reality on the ground,” she says.  “Through this programme, we won’t just speak of, but rather live and breathe the culture that we value.” 

This is a pivotal movement for organisations. The choice is stark. Allow workplace culture to evolve passively or take deliberate steps to shape it into a competitive advantage.  Evidence strongly supports the latter approach, with organisations that prioritise culture reaping long-term benefits, including enhanced sustainability and profitability. 

Leaders who embrace transformational culture will not only future-proof their organisations but also create workplaces where employees thrive – a win-win for people and businesses alike.

About the Author  

David LiddleDavid Liddle is a globally renowned authority in the fields of conflict management, HR transformation, culture change, people & culture, leadership and organisation development. 

In 2024, David was recognised as one of HR’s most influential thought leaders. He has won numerous awards including the HR impact award for his work transforming the HR policy framework at Burberry and mediation consultancy of the year for his work embedding a mediation programme into Aviva.   

He is the author of two highly acclaimed books. His first book, Managing Conflict, transformed the landscape of dispute resolution.  The 2nd edition was published in October 2023. Transformational Culture was published in October 2021 to rave reviews, including from Dave Ulrich, who described it as ‘remarkable’. David has also contributed to several texts published by Thinkers50. His next two books are due to be published in 2025. ‘How to Disagree Well’ and ‘People and Culture – a practical guide for HR and leaders. 

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