*Names and selected details have been changed or merged to provide anonymity.
After twelve months of considerable focus and investment, Alice* was at a loss. Not only had there been no observable improvement in how her business was running, but employee feedback suggested things were getting worse.
Eighteen months earlier, Alice had brought in a new Head of HR to spearhead a cultural transformation. Brian* came with an impressive CV of organisations and culture transformation projects, and professed to have done this “many times before.” He confidently reassured Alice that he would deliver the shift needed to get her company on the right track.
Brian spent six months working extensively with Alice and her Executive Team to build out a transformation plan and define new values to serve as the cornerstone of the desired culture. After what felt like endless workshops and Board presentations, they finally secured universal agreement from the Board and the Executive Team, then moved to implementation.
The new values were well received—employees broadly agreed that they reflected both the past and future spirit of the organisation. A multi-channel communications plan was launched to build awareness and desire, and divisional briefings suggested it was working. A new corporate awards program generated much excitement, with an overwhelming number of nominations in its first round.
There was some grumbling and finger-pointing, but Brian assured Alice this was normal and that dissenters would eventually change, leave, or be managed out. Status reports showed everything was on track, and the project seemed like a success.
However, when the annual engagement survey results came in, Alice was forced to confront the bigger picture. Employee sentiment about the culture had worsened. Brian reassured her that this was expected—raising awareness of an issue often drives more discussion about it—but Alice wasn’t convinced. Despite surface-level wins, deeply ingrained behaviours had not shifted, and reports of bad leadership were increasing. Employees were frustrated by the lack of real change. Alice couldn’t understand why the plan wasn’t working, especially since they had been addressing change fatigue and prioritising key initiatives.
Alice’s situation is not unique. Many culture change efforts fail for a variety of reasons, but three key lessons could have set her up for a different outcome:
- Problem Definition: Is the problem the problem?
- Strategy vs. Planning: The skipped step.
- Top Down vs. Bottom Up: More critical than just buy-in.
1. Problem Definition: Is the Problem the Problem?
McKinsey reports that 70% of transformations fail, citing the first point of failure as a lack of fact-based, high aspirations. Executives often base decisions on consensus rather than on data.
Harvard adds that leaders focus heavily on what the change is and why it’s necessary, but failing to prioritise how the change will happen can undermine efforts.
Carolyn Taylor, author of Walking the Talk, shares another observation:
“Another cause of transformations failing is organisations becoming caught up in activity and not focusing enough on the end state.”
In Alice’s case, the Executive discussions focused almost exclusively on employee behaviour. Why? Because this was the only area they would all agree to address. As a result, the plan targeted behavioural change in employees but failed to examine systemic factors reinforcing the status quo.
The reality is that behaviours are often a byproduct of the environment. Trying to change culture solely through values or behavioural training is like digging a hole in wet sand—no matter how hard you work, the environment quickly undermines your progress.
Michael Beer from Harvard suggests a counterintuitive but effective approach: the best way to change culture is not to focus directly on culture but to address the systems shaping it. Real change happens when you align strategy, governance models, processes, and performance management systems with your desired culture.
Actionable Steps for Problem Definition:
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Use Data, Not Assumptions
- Analyse employee surveys, exit interviews, and KPIs for patterns.
- Conduct focus groups to uncover root causes.
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Focus on Systems, Not Symptoms
- Map out policies, leadership styles, and operational bottlenecks.
- Ask “Why?” repeatedly to dig deeper into the root cause.
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Engage Multiple Perspectives
- Involve voices from all levels through workshops, anonymous feedback tools, and sentiment analysis.
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Define the Future State
- Establish measurable outcomes that align with strategic goals.
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Stress-Test Your Diagnosis
- Validate conclusions with evidence and consider systemic factors.
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Seek External Objectivity
- Bring in consultants to provide fresh perspectives and challenge biases.
2. Strategy vs. Planning: The Skipped Step
Many organisations jump straight into planning without defining a cohesive strategy. What does success look like? What are your decision criteria? And most importantly, what are you prepared to trade off?
Alice’s efforts were undermined by senior leaders operating in a business-as-usual mode. Employees grew frustrated being asked to change while leaders made no visible adjustments to their own behaviours, processes, or decision-making.
Actionable Steps for Strategy Over Planning:
- Define clear, measurable transformation outcomes using frameworks like OKRs.
- Establish guiding decision criteria and stress-test against trade-offs.
- Align leadership behaviours and hold leaders accountable.
- Review and adjust governance to remove bottlenecks and improve agility.
3. Top Down vs. Bottom Up: More Than Just for Buy-In
Imagine Jo works for a manager, Frank, who micromanages every decision. One day, Frank demands Jo take more initiative and sends her to ‘lead-self’ training—only to continue micromanaging. Neither Frank nor Jo will be happy with the outcome.
This mirrors what happens in top-down culture change programs that focus on symptoms, not root causes. Blind spots and assumptions—such as the Illusion of Information Adequacy—often lead executives to design initiatives disconnected from employees’ realities.
In Alice’s case, the Executive team avoided disruptive but necessary changes. Ironically, this avoidance was one reason the plan failed, driving more frustration from employees.
Actionable Steps to Balance Top-Down and Bottom-Up:
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Engage Employees Early
- Involve employees in co-designing solutions to foster ownership.
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Build Feedback Loops
- Regularly gather and act on employee feedback using tools like pulse surveys.
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Identify and Empower Champions
- Select ambassadors across levels to drive grassroots momentum.
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Pilot Initiatives
- Test cultural initiatives on smaller teams before scaling.
Redesign the System, Not Just the Behaviour
Think of a culture change program as redesigning a system rather than fixing individuals. Start with a clear business outcome, examine the systemic drivers of behaviour, and involve employees in co-creating solutions. Employee behaviour might appear to be the problem, but it’s rarely the root cause.