You Don’t Have a Culture Problem You Have a Leadership Problem

"The culture of any organization is shaped by the worst behaviour the leader is willing to tolerate."
Gruenter & Whitaker

Organisational culture is often blamed when engagement drops, turnover rises, or teams stop collaborating effectively. “It’s a culture issue,” leaders say. But more often than not, the dysfunction stems not from a nebulous ‘culture,’ but from leadership misalignment.

This article unpacks why leadership not culture is the root cause of many team issues, and how leaders can become culture shapers rather than culture critics.

What Is Organisational Culture, Really?

Organisational culture is not your mission statement, your values posters, or your employee perks. It’s:

“The shared values, beliefs and norms that influence the way employees think, feel, and behave.”
(Schein, 2010)

It lives in the daily actions, unspoken rules, and decisions made especially by those in leadership.

The Culture Problem Myth

When people say, “We have a culture problem,” what they often mean is:
  • Teams aren’t aligned.
  • Communication is poor.
  • People avoid taking initiative.
  • Trust is low.

These are symptoms. The root is typically inconsistent, unclear, or avoidant leadership.

“Leadership is the most powerful force in shaping organisational culture.”
John Kotter (2012)

How Leadership Drives Culture

Leaders Model the Real Values

People don’t learn culture from documents they learn it from what leaders do:
  • If leaders cut corners, people learn results matter more than integrity.
  • If leaders respond with silence to conflict, people learn avoidance is safe.
  • If leaders listen, include and empower, people mirror that in teams.

“Culture is not just an aspect of the game – it is the game.”
Lou Gerstner, former IBM CEO

How-To: Align Leadership to Culture

Start With Self-Awareness

Leadership is an inside job. Leaders must examine how their own behaviour sets the tone.

Ask yourself:
  • What behaviours am I unconsciously modelling?
  • What do I ignore or tolerate that contradicts our stated values?
  • How do people feel after engaging with me?

Tool: Use 360-feedback, reflective journaling, or facilitated team feedback to uncover blind spots.

Define Non-Negotiable Behaviours

Values must be made visible through consistent actions.

Instead of vague values like “Respect,” define it as:

We give people space to speak without interruption.

We follow up on promises and communicate delays.

Tip: Co-create these behaviours with your team to boost ownership.

Reference: Patrick Lencioni’s work (The Advantage, 2012) emphasises the power of behavioural clarity in healthy cultures.

Hold the Line (Especially When It’s Hard)

Cultural credibility is earned in moments of discomfort when a high performer behaves poorly, or when deadlines tempt corner cutting.

How-to:

Have a clear consequence structure tied to values breaches.

Praise and reward value-aligned behaviour in public.

Address misalignment immediately, even when uncomfortable.

“Leaders who don’t confront bad behaviour send the message that it’s acceptable.”
Brené Brown, Dare to Lead (2018)

Cultivate Psychological Safety

Without safety, culture becomes compliance-driven, not growth-driven.

How-to:

Admit your own mistakes and what you learned from them.

Invite dissent and thank people for honest feedback.

Use phrases like: “What am I not seeing?” or “What’s the risk if we go ahead?”

Reference: Amy Edmondson’s research on psychological safety shows it’s a key driver of innovation and team learning (Edmondson, 1999).

Lead by Design, Not Default

Culture is not a side project it’s a leadership responsibility.

Design your leadership routines intentionally:

Begin each team meeting with a cultural check-in.

Dedicate time in one-on-ones for “how we’re working” not just “what we’re doing.”

Align recruitment, onboarding, and recognition systems to cultural expectations.

Case Insight: When Leadership Shifted the Culture

Context: A mid-sized NZ consultancy was experiencing low trust and high turnover, despite “strong values” on paper.

Intervention: The leadership team undertook an emotional intelligence coaching programme, clarified behavioural standards, and committed to weekly leadership reflection meetings.

Result: In 12 months, employee trust scores (via Gallup Q12) rose by 34%, and voluntary turnover dropped by 22%.

Summary: Leadership Is Culture

Culture isn’t what’s written it’s what’s lived. And what’s lived is what leaders’ model, allow, and reinforce.

If you want to fix the culture, don’t start with HR.

Start with how leaders show up.

Because more often than not:

“You don’t have a culture problem you have a leadership problem.”

References

Schein, E. H. (2010). Organizational Culture and Leadership. Jossey-Bass.

Kotter, J. (2012). Leading Change. Harvard Business Review Press.

Lencioni, P. (2012). The Advantage: Why Organizational Health Trumps Everything Else in Business. Jossey-Bass.

Brown, B. (2018). Dare to Lead. Random House.

Edmondson, A. (1999). Psychological Safety and Learning Behaviour in Work Teams. Administrative Science Quarterly, 44(2), 350–383.

Author: Peter Robinson
Team Leadership Services