Leaders as Culture Carriers

Heritage Day in South Africa – celebrated on the 24th of September – is about acknowledging and appreciating the diverse cultures of the nation’s people. We are amplifying this theme this month, in our themes of leaders as culture carriers.

A leader’s cultural background acts as a lens through which they view and engage with the world, influencing how they lead, communicate, and make decisions. This unique cultural perspective helps shape the organisational culture, guiding values, behaviours, and interactions within the workplace.

Diverse leadership brings a wealth of cultural perspectives, enriching the organisational environment and fostering innovation, inclusivity, and a deeper understanding of varied customer and employee needs. Leaders who embrace and leverage their cultural heritage can build stronger, more resilient organisations that reflect the richness of the communities they serve.

Let’s explore this further.

Culture Matters

• Companies that prioritise culture experience a significant 33% increase in revenue (Gallup).
• 89% of highly engaged employees say the culture in their organisation is positive (Quantum Workplace).
• 94% of managers agree that a positive workplace culture creates resilient teams (SHRM).

This month, we focused on the crucial role of leaders as “culture carriers,” exploring how they create, maintain, or transform culture within their organisations and the profound impact this has on both success and employee well-being.

What is Organisational Culture?

Organisational culture is the set of shared values, beliefs, and norms that influence how people within an organisation behave and make decisions. Understanding and nurturing this culture is vital for leaders because it:

• Shapes Employee Behaviour: It dictates how employees communicate, collaborate, and approach their work.
• Impacts Employee Well-being: A positive culture contributes to job satisfaction and overall morale.
• Sets Workplace Norms: Culture defines expectations around work-life balance, problem-solving, and innovation.
• Drives Organisational Success: A strong, positive culture boosts motivation, leading to higher productivity and innovation.

“The only thing of real importance that real leaders do is create and manage culture.” – Edgar Schein

Culture is inevitable. Whether actively shaped or not, every organisation has a culture that influences its operations. Leaders have both the responsibility and the opportunity to shape this culture.

How Company Culture Has an Impact 

Organisational culture profoundly affects various aspects of an organisation. Here’s how culture influences six key areas:

• Hiring
  • A strong, positive company culture attracts top talent. Candidates increasingly seek workplaces that align with their values and offer a supportive environment.
• Engagement
  • Culture is a key driver of employee engagement. When employees connect with the company’s mission, vision, and values, they are more motivated to contribute to the organisation’s success.
• Productivity
  • A positive culture creates a work environment where employees can perform at their best. Elements such as trust, autonomy, and support enable employees to be more productive.
• Performance
  • When a company’s culture aligns with its business strategy, it can significantly boost performance. A strong culture ensures that everyone in the organisation is working towards common goals.
• Retention
  • Employees who feel that their workplace culture aligns with their personal values and goals are more likely to stay with the company. A positive culture fosters job satisfaction by creating a supportive and motivating environment.
• Agility
  • A culture that values flexibility, continuous learning, and innovation equips a company to adapt quickly to market or industry changes. Employees in such cultures are more open to new ideas and approaches.

How Leaders Influence Culture

Leadership can be a transformative force that shapes an organisation’s culture from the ground up. Here are six key areas where leaders can influence culture:

1. Setting the Vision

A clear and inspiring vision guides actions and decisions, ensuring alignment with the company’s mission. Employees who understand and embrace the vision are more motivated, engaged, and better performing.

2. Modeling Behavior

Leaders set the standard for acceptable behaviour within the organisation. Symbol management, where leaders consciously act as examples, is a strategic tool in shaping culture.

3. Transparency and Accountability

Transparency builds trust, and accountability ensures integrity. Leaders should foster a culture where these values are embraced, promoting higher engagement and a sense of value among employees.

4. Decision-Making

Involving various levels of the organisation in decision-making fosters a culture where employees feel heard, trusted, and valued. Effective decision-making processes enhance responsibility and motivation.

What Makes an Engaging Culture?

Are you looking to create an engaging culture? Here are 10 key mechanisms of an intentionally and thoughtfully built culture, developed by Factor10’s Kerrin Miller, based on evidence-based research.:

1. Driven by purpose and strategy
2. Linked to values and vision
3. Built on defined behaviours
4. Made visible in a culture canvas
5. Role modelled by leaders
6. Communicated consistently and compellingly
7. Clear that everyone is accountable
8. Measured and tracked
9. Recognised and rewarded
10. Celebrated

“Employee engagement arises out of culture and not the other way around.” – Moe Carrick

The organisational culture – the environment, values, and behaviours – promoted within the company shapes how engaged employees feel in their work. A positive culture leads to better employee performance and stronger business outcomes.

In companies where engagement efforts are introduced without addressing or aligning with the underlying culture, those efforts may fail to take root. Employee engagement that stems from a strong, positive culture is more sustainable. It’s not just a fleeting response to perks or incentives; it’s a deeper, intrinsic connection to the workplace.

Workplace culture significantly influences employee satisfaction and organisational success. Here are the key traits of the best cultures:

• Transparent Communication: Open and ongoing communication builds trust and clarity. Employees who are well-informed and able to voice their ideas tend to be more engaged and productive. Companies with strong communication between management and employees experienced a 50% reduction in turnover rates (SHRM).
• Meaningful Work: Employees are more motivated when their work is challenging, impactful, and aligned with a greater purpose. Meaningful work contributes to higher job satisfaction and retention. Employees who find meaning in their work are 2.3 times more likely to be engaged (Harvard Business Review).
• Sense of Belonging: Feeling connected to colleagues and the organisation fosters collaboration and loyalty. A strong sense of community at work boosts performance and job satisfaction. 73% of respondents believe fostering a sense of belonging is crucial for company success, and 93% agree it enhances organisational performance (Deloitte).
• High Autonomy with Accountability: Empowering employees with autonomy while ensuring alignment with organisational goals encourages ownership and innovation. Employees who have control over their work are 43% more likely to be highly engaged (Gallup).
• Diverse Perspectives: A culture that values diverse viewpoints enhances creativity and problem-solving. Inclusive environments drive better decision-making and innovation. Companies with gender diversity outperform others by 21%, while those with ethnic and cultural diversity see a 33% advantage (McKinsey).

Culture is the Shadow of the Leader

Culture is not an abstract concept but a tangible reflection of leadership. Leaders must embody the culture they wish to cultivate, as their “shadow” will inevitably shape the organisation’s identity and success.

Leaders leave a lasting impact on the organisation’s culture, even after they leave. The norms, values, and practices they establish can persist for years, influencing the organisation’s direction and success. Leadership is not just about managing the present but also about shaping the cultural legacy of the organisation.

At Factor10, we’re re-imaging leadership this year. Get in touch with Kerrin to explore how to build culture carriers for your organisation.