It doesn’t matter how many rules, policies or processes you put in place; your workplace’s culture is the real engine behind how people make choices and get things done. And your leadership is absolutely crucial for setting that tone – but it’s not as simple as asserting that “this is our culture.”
Your workplace vibe is courtesy of its culture
The culture is basically the unwritten rulebook for a company. It’s the shared beliefs and habits that everyone just sort of picks up. For example, if the culture is all about trusting people to get on with their work, you’ll find staff are more confident and proactive. But if the culture is a bit tense with people always looking over their shoulder, they’ll be more careful, maybe even scared to try new things. The culture dictates how decisions get made; whether they are collaborative, or if they just come down from the top.
The leaders role
This is where the leaders come in. They’re not just there to manage; they cultivate it. They do this by acting as the primary source of truth and by role-modelling the behaviours they want us to see.
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They set the example: A good leader doesn’t just talk about being honest or hardworking; they actually are honest and hardworking. People watch their boss to see what’s really important.
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They make it clear: Leaders have to be vocal about what the company stands for and make sure everyone understands those values. They should celebrate people who live those values and address it when people don’t.
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Their decisions matter: Every decision a leader makes, from who they hire to how they handle a screw-up, sends a powerful message. It shows what they truly value, far more than any policy or motivational poster on the wall.
Here’s the catch
The culture you nurture dictates how your people will react to change, but it isn’t possible to directly control or design it. Culture is an emergent phenomenon; it comes from countless small interactions and interpretations.
When people face uncertainty, they naturally seek meaning through sensemaking, a social process of creating a plausible narrative. This isn’t about objective truth; it’s about what feels believable, based on past experiences and what others are saying. This is why a leader’s actions are so important, they become the “data” people use to make sense of new situations.
The problem is that this process heavily influenced by cognitive biases, which are mental shortcuts our brains use.
- Confirmation Bias: We look for proof that we’re already right. If a team distrusts a leader, they’ll only notice things that confirm their suspicion, ignoring anything positive.
- Availability Heuristic: We base our judgments on what’s most recent or memorable. A recent project failure might make us overly cautious, assuming the next one will also fail.
When these biases are shared, they can create a collective delusion, a shared “truth” that’s completely false. A team might actively sabotage a new project not because it’s a bad idea, but because a shared narrative has taken hold that leadership’s changes are always a threat to job security. This desire for a coherent story can make people ignore logic and data, making it incredibly hard to adapt or innovate.
How do we fix it?
You can’t fix a toxic culture with a one-size-fits-all solution. This is why its so important for you to understand that culture is an emergent phenomenon; it’s not something you can directly control. The fix lies in shifting your leadership style to actively cultivate a healthy culture.
This means moving away from a command-and-control mindset and adopting a more fluid, adaptive approach.*
- Instead of letting a narrative emerge from the rumour mill, be the primary source of truth. When a situation is uncertain, communicate openly and consistently, ESPECIALLY when the situation is uncertain. Frame the narrative in a way that aligns with your values. For example, instead of a vague email about “restructuring,” explain the “why” and “what’s next” to prevent employees from filling in the blanks with fear.
- People won’t challenge a false narrative if they’re afraid of being wrong or punished for questioning things. Create an environment where it’s safe to ask questions, voice concerns, and even admit “I don’t know.” When employees feel comfortable sharing their true perspective, you can address flawed thinking and inaccurate assumptions head-on.
- Don’t launch large-scale changes based on assumptions. Instead, probe with small, safe-to-fail experiments. This allows you to observe what happens and how people react. You then sense the collective feedback and emerging patterns to understand the reality on the ground. Finally, you respond by reinforcing what works and nudging the culture in a healthier direction. This iterative, adaptive approach allows a healthy culture to emerge organically rather than by force.
- Counteract cognitive biases by grounding decisions in data and objective facts. Don’t just present the information; use it to tell a story that’s based on reality. When a team’s narrative is challenged by clear evidence, it forces them to re-evaluate their assumptions. Make this a regular practice, so people learn to rely on facts, not just feelings or gossip.
*A note on leadership style: While an adaptive approach is great for building culture and handling a lot of uncertainty, it’s not always the right call. For example; in a crisis you need a leader who can take charge and give direct commands to keep everyone safe and stable. On the other hand, in a predictable workplace with strict rules a more rigid, command-and-control style is best for getting things done efficiently. A great leader knows how to read the room and adjust their style to fit the situation.