The role of culture in organisational transformation

In modern business, change is the only constant, so the ability to adapt and evolve is a key differentiator between organisations that thrive and those that falter. Estelle Eades from Project One explains how firms can build a culture that empowers staff to help transformation projects succeed.

As highlighted in recent trends analysis by Project One, culture is not just an enabler for transformation, but the very foundation upon which successful change must be built. When organisations recognise culture as a strategic asset, instead of an abstract concept, they can harness its power for their goals.

Culture influences how employees respond to change, how teams collaborate, and how innovation is embraced. It is the shared values, beliefs, and behaviours that define how work gets done within an organisation. A culture with strong, adaptive qualities can make the difference between a smooth transformation, and one fraught with resistance.

To build this kind of culture, businesses must prioritise four changes. They should embed a growth mindset, promoting learning, experimentation, and continuous improvement – helping to make employees more receptive to change. Organisations should foster psychological safety, helping staff feel safe to share ideas and challenge the status quo, and in turn enabling them to contribute to transformative initiatives.

At the same time, they should prioritise inclusivity, as a diverse culture ensures a broad range of perspectives that lead to innovative and sustainable transformation. And finally, firms should align their values with their change goals, as transformation efforts are most effective when they are rooted in an organisation’s core values and purpose.

Pitfalls of misalignment

One of the biggest barriers to transformation is cultural misalignment. When the culture does not support change, organisations encounter resistance, disengagement, and failed initiatives.

Possible barriers to change in this context can be change fatigue, in which employees become overwhelmed by constant transformation efforts, or lack of trust in leadership - with employees seeing transformation as insincere or disconnected from their working reality.

Firms without cultural alignment can also suffer from siloed thinking. An organisation with rigid hierarchies can stifle collaboration and hinder innovation in this way.

Steps to build a better culture

For organisations to successfully embed transformation into their DNA, they must take deliberate steps to shape a culture that supports change. This requires a multi-faceted approach:

1. Define the Cultural Attributes Needed for Success

Organisations should identify the cultural traits that align with their transformation goals. Whether it’s agility, innovation, or customer-centricity, these attributes must be clearly defined and communicated.

2. Lead by Example

Leadership plays a pivotal role in shaping culture. Leaders must embody the values they wish to see and act as champions of change. Transparency, empathy, and active engagement are critical in building trust and commitment.

3. Reinforce Cultural Behaviours

Cultural transformation is sustained through reinforcement mechanisms, including:

• Recognition and Rewards: Acknowledging and rewarding behaviours that align with the desired culture encourages adoption
• Policies and Processes: Organisational structures and processes should support the new cultural norms rather than reinforce outdated practices
• Continuous Communication: Regular, open dialogue ensures employees remain engaged and understand their role in the transformation journey.

4. Empower Employees to Own the Change

Cultural transformation cannot be imposed; it must be co-created. Providing employees with opportunities to contribute, share insights, and influence change fosters ownership and commitment.

Looking ahead

Culture is not a byproduct of transformation; it is its foundation. Organisations that invest in cultural alignment create environments where employees feel supported, motivated, and empowered to drive change. As we move further into 2025, those who embed adaptability, inclusivity, and a shared sense of purpose into their culture will be best positioned to navigate the complexities of the future.

By recognising culture as a catalyst rather than an obstacle, organisations can turn transformation into an ongoing journey of growth and resilience. Change is inevitable, how we shape our culture determines whether we thrive in it.