17th June 2025
Culture Starts at the Top
How Leaders Shape a Successful Organisational Culture
Organisational culture isn’t just a set of values written on a wall; it’s the heartbeat of how people work, collaborate, and grow within a company. As Edgar Schein famously pointed out, leaders are the architects of culture, whether consciously or unconsciously.
Great leaders embed culture in three principal ways:
1. What They Pay Attention to, Measure, and Control
2. How They Allocate Resources
3. How They React to Critical Incidents
Let’s break these down and explore how leaders can harness culture as a driving force for business success.
1. What Leaders Pay Attention to, Measure & Control
Think about it, what gets tracked gets prioritised. If a CEO is laser-focused on quarterly financials, employees will naturally orient themselves around hitting financial targets, sometimes at the expense of long-term innovation or employee engagement.
But when leaders spotlight values like collaboration, diversity, or wellbeing alongside performance metrics, they signal what truly matters. Satya Nadella, CEO of Microsoft, exemplifies this cultural shift, transforming the company from a “know-it-all” culture to a “learn-it-all” culture by making continuous learning a central leadership theme.
Want to reinforce a strong culture? Start with the metrics you track. Are you measuring innovation, customer-centricity, or employee well-being as much as financial success?
2. How Leaders Allocate Resources
Budgets, talent, and time are tangible expressions of leadership priorities. If innovation is a buzzword in your organisation, but R&D funding remains stagnant, employees will see through the contradiction.
Patagonia, for example, has built a culture of environmental responsibility, not just in words, but through financial commitments and product decisions that align with sustainability. Leaders at every level ensure their resources reflect their values.
Look at your resource allocation, does it align with your cultural aspirations? If inclusivity is a priority, are training budgets supporting diversity programs? If agility is key, are teams given the autonomy to innovate?
3. How Leaders React to Critical Incidents
Culture is tested in moments of crisis. A leader’s response during challenging times—whether it’s handling layoffs, ethical dilemmas, or reputational risks sends a clear message about organisational values.
Consider Airbnb’s reaction during the COVID-19 crisis. When forced to downsize, CEO Brian Chesky sent a heartfelt, transparent letter to employees explaining the decision, offering generous severance, and providing long-term career support. His leadership during the crisis reinforced Airbnb’s culture of empathy and integrity.
When pressure mounts, step back and ask: How will this decision shape cultural norms in the long run? Short-term reactions can define an organisation’s ethos for years to come.
Final Thought: Culture is a Leadership Responsibility
Culture is never accidental; it’s cultivated through everyday leadership choices. If you’re an organisational leader, ask yourself:
- What messages do my actions and decisions send?
- Does our culture empower people or create unnecessary friction?
- Are we building a culture that employees genuinely believe in?
Schein’s principles remind us that leaders don’t just shape culture; they embody it. And when culture is intentional, it becomes the driving force behind business success.
Justin Miles
Categories: Designing Organisations Uncategorised
