Creating a culture at work: 4 mistakes that will tank your business

When it comes to driving success as a business, there are a lot of moving parts and so much to consider. You want to hire the best and brightest to keep your company growing. You need to have a clear, guiding vision for the direction of your company. And perhaps most important, you need to have a strong organisational culture that supports and motivates your team.

The right workplace culture not only drives engagement and productivity but also sets a business apart from its competitors. On the other hand, a misaligned or toxic culture can cripple an organisation’s performance. In fact, research by MIT found that a toxic work environment was a major driver behind the Great Resignation, leading to record levels of employee turnover.

Building a cohesive culture requires intentional planning. Leaders need to be aware of the potential pitfalls if they want to stop them in their tracks. Below, we explore four common mistakes businesses make in creating a culture and the impact these mistakes can have on long-term success.

Related: How to carry out a company culture assessment

1. Trying to be everything to everyone

When it comes to creating a culture, many organisations fall into the trap of trying to adopt multiple — and often conflicting — traits. Companies may aspire to be both highly competitive and extremely collaborative or both risk-averse and highly innovative. While these goals are individually beneficial, combining too many opposing traits into one culture can cause confusion and frustration among employees, inevitably creating internal conflicts.

An unfocused culture also confuses new employees, who will struggle to understand what is truly valued within the organisation. Over time, employees may disengage because they’re unclear about the behaviours expected of them. Instead, leaders should focus on a few core values that define their unique culture — be it creativity, stability, inclusivity or flexibility. A clearly defined culture that aligns with the company’s objectives makes it easier for employees to perform and for the business to achieve its goals.

2. Allowing subcultures to dominate

In organisations with no strong cultural core, smaller teams or departments often develop their own microcultures or “microclimates.” While subcultures can be valuable, allowing them to take over without a cohesive organisational culture can lead to conflicting behaviours and a fractured identity. 

For example, the sales department might develop a competitive, fast-paced microculture, while the HR team centres a more collaborative, inclusive one. In this scenario, friction arises as each team pulls in a different direction, resulting in reduced cooperation and overall dysfunction.

Research from the CIPD suggests that subcultures lacking alignment with a broader organisational culture can increase feelings of disengagement and erode trust. To avoid this happening, companies need to establish a common set of values and behaviours that each department can relate to, allowing flexibility within individual teams while at the same time maintaining a unified cultural foundation.

Check out our whitepaper: How to implement your organisation’s values

3. Failing to align culture with strategy

A mismatch between culture and strategy is a common issue, particularly during times of major change, such as mergers, rapid growth or shifts in business direction. For example, an organisation may aim to innovate and explore new ideas, but if its culture still prioritises stability, stringent processes and risk aversion, it will most likely, and understandably, struggle with this goal.

This goes to show that the link between culture and strategy can’t be overlooked or overstated. A study by Deloitte found that 94% of executives believe a strong culture is critical to an organisation’s success. Strategy provides direction, but culture determines the behaviours that employees adopt to reach these goals. When culture and strategy are out of step, employees feel confused, initiatives stagnate and organisations struggle to reach their full potential.

To keep culture and strategy aligned, organisations should review their culture regularly — especially when undergoing any significant strategic shifts. This is where our cultural alignment services can come into play, ensuring everyone is engaged and on the same page.

4. Promoting values that aren’t genuinely practised

Another common pitfall when creating a culture is advertising values that aren’t, in reality, actually lived out. Companies may claim their values include things like “integrity” or “transparency”, and they might highlight such values on their website or posters, but if employees don’t see these values in action in their day-to-day work, it causes confusion. This gap between stated and lived values creates a sense of mistrust and can leave employees feeling disillusioned.

When values feel like superficial “mouse mat” slogans — where they are displayed but not genuinely embraced — employees are less likely to engage with the culture or feel a part of it. In contrast, when values are consistently modelled by leaders and seen in daily interactions, they inspire a culture where employees feel more motivated and connected to the organisation’s mission. Our cross-sector benchmark shows some interesting trends in this area. While 82% of employees say they understand their company’s values and what they mean, only 67% feel people actually feel these values are lived out by its people.

Creating a culture that supports an organisation’s goals and engages employees requires intentionality and ongoing effort. Avoiding the four common mistakes above can help companies build a healthier, more effective workplace culture.

In the end, creating a culture is about aligning values, behaviours and strategic goals. It requires a clear understanding of what makes the company unique and the willingness to address issues that might steer it off course.

Are you looking to understand and build a healthier, cohesive workplace culture? Get in touch today to discuss our cultural alignment services. Our change management survey is also there to help you navigate organisational change.