What Changes Company Culture?

Company culture is the shared beliefs, values, behaviors, and daily routines that define how people work together. It plays an essential role in effective leadership and long-term organizational success.

As Simon Sinek once said, “Customers will never love a company until the employees love it first.”

Edgar Schein also emphasized leadership’s role in shaping culture when he said, “The only thing of real importance that leaders do is to create and manage culture.”

These statements remind us that we shouldn’t take company culture lightly. It influences how employees communicate, make decisions, solve problems, and treat one another.

But here is an important question: What actually changes company culture, and why is it so difficult to change?

Why Is Changing Company Culture So Difficult?

As humans, we intentionally or unintentionally develop routines, habits, and ways of working. Over time, we become comfortable with them, and they become part of our everyday lives.

When someone tries to change those established routines, we may feel uncomfortable, uncertain, or even threatened. This resistance to changing familiar behaviors is one of the main reasons changing company culture can be so difficult.

However, just because changing culture is difficult does not mean it is impossible.

The question is: Are we willing to take the necessary steps and stay consistent throughout the change process?

Let’s look at some of the most important steps leaders can take to build a positive, sustainable company culture.

Company Culture Starts With Leadership

First, we must understand that company culture starts with leadership.

Leaders establish the initial expectations, behaviors, and standards that shape the organization’s culture. However, over time, daily behaviors and routines can either reinforce that culture or gradually change it.

Let me share a simple example.

Imagine your organization has a policy that allows employees to be no more than five minutes late. However, leaders regularly overlook employees arriving ten or fifteen minutes late.

What message does that send?

Even though the written policy hasn’t changed, the accepted behavior has. Over time, employees begin to understand that the actual expectation is different from the written policy.

In other words, we have unintentionally created a new standard and influenced the company culture.

This is why leaders must consistently demonstrate and reinforce the expectations they establish, while also ensuring those expectations are reasonable and fair.

Leaders Must Lead by Example

Leaders build the foundation of company culture through their actions, decisions, and expectations.

People look up to their leaders and observe how they behave.

If we serve in a leadership role, we must recognize that our actions influence others. We must be disciplined and willing to follow the same standards we expect our employees to follow.

Unfortunately, we sometimes see leaders who say one thing but do something completely different.

How can we expect employees to follow established standards when their leaders don’t?

People are more likely to follow what leaders consistently do than what they say.

Leading by example is one of the most effective ways to demonstrate expected behaviors and build credibility among team members.

Align Mission, Vision, and Values With Your True North

Every organization should have a clear mission, vision, and values that guide its people.

• Vision: Describes where the organization wants to go.
• Mission: Explains why the organization exists, whom it serves, and how it delivers value.
• Values: Define the beliefs and behaviors that guide everyday decisions and actions.

Leaders must translate these statements into clear, observable behaviors.

Employees must also understand what the organization’s mission, vision, and values mean and how they relate to their daily work.

That is why I recommend keeping these statements simple, meaningful, and easy to remember.

Leaders should regularly communicate and reinforce them so everyone remains aligned.

People want to understand their organization’s True North, a clear direction that aligns everyone around a common purpose.

When employees understand where the organization is going, why their work matters, and what is expected of them, they are more likely to feel engaged, take ownership, and work together toward shared goals.

Without that direction, employees may work hard but move in different directions.

Build a Company Culture Where Employees Feel Empowered

One of the most valuable lessons I have learned through Lean is the importance of involving employees in continuous improvement.

This means encouraging team members to share improvement ideas, participate in problem-solving, and suggest ways to improve processes.

But simply asking employees for ideas is not enough.

We must also listen and show that their input matters.

Organizations with strong cultures create environments where employees feel comfortable speaking up, raising concerns, asking questions, and admitting mistakes.

Why is this important?

Because every process has opportunities for improvement, and the people performing the work often have valuable knowledge about those opportunities.

When employees fear punishment for reporting problems or admitting honest mistakes, they may start hiding issues instead of addressing them.

This can seriously damage trust and weaken organizational culture.

A strong company culture encourages people to identify problems, not hide them.

Focus on Improving Processes Instead of Blaming People

Leaders at every level must intentionally focus on improving processes rather than immediately blaming individuals when something goes wrong.

Blaming people without understanding the actual situation is an outdated management approach that can create fear, reduce trust, and discourage continuous improvement.

Instead, leaders should ask:

What happened? Why did it happen? What can we learn from this situation? How can we prevent it from happening again?

This is where Lean thinking and structured problem-solving become extremely valuable.

By going to the gemba, observing the actual process, and identifying root causes, leaders can help their teams develop effective countermeasures.

Of course, accountability remains important. However, accountability should focus on following agreed-upon standards, taking responsibility, and continuously improving how work is performed.

When leaders consistently demonstrate this approach, employees begin to view problems as opportunities to learn and improve.

Invest in People and Build Trust Among Team Members

Another important part of creating a positive company culture is developing people.

Leaders must provide employees with opportunities to learn, develop new skills, and grow professionally.

This also means hiring people whose skills and behaviors align with the organization’s needs and values.

However, developing individual skills is only part of the equation.

We must also create an environment where people are encouraged to work together, share their knowledge, use one another’s strengths, and help each other improve in areas where they may struggle.

This can happen only when team members trust one another.

Think about your own organization.

Are employees comfortable asking one another for help? Do departments collaborate, or do they operate in silos? Are people willing to admit when they do not know something?

The answers to these questions can tell us a great deal about our company culture.

Building trust takes time, but it is one of leadership’s most important responsibilities.

How Lean Principles Help Change Company Culture

I highly recommend using Lean principles to support cultural transformation within your organization.

Two fundamental Lean principles are respect for people and continuous improvement.

When leaders genuinely respect people, they build trust and stronger relationships with their teams.

One practical way to do this is through regular Gemba Walks.

By going to the workplace, observing processes, listening to employees, and helping remove obstacles, leaders show they care about both the people and the work being done.

However, consistency is critical.

We cannot expect to build a strong culture by visiting the gemba once a month or only when problems occur.

Leaders must establish routines that reinforce the behaviors they want to see.

This is where Leader Standard Work becomes especially valuable.

Leader Standard Work helps leaders establish consistent daily, weekly, and monthly activities focused on communication, coaching, problem-solving, and continuous improvement.

When leaders consistently follow these routines, they demonstrate commitment and create an environment where positive behaviors become part of everyday work.

Over time, these behaviors help shape and sustain the desired company culture.

Final Thoughts: What Really Changes Company Culture?

Changing company culture is not easy, and it certainly does not happen overnight.

It requires leadership commitment, trust, clear expectations, employee involvement, and consistent daily behaviors.

Mission statements, organizational values, policies, and training are important, but they alone will not change company culture.

Real change happens when leaders and employees start doing things differently and keep practicing those behaviors until they become part of everyday work.

I would like to leave you with one final thought:

Culture changes when behaviors change, not when slogans change.

Organizations create lasting cultural change when leaders and employees consistently demonstrate the behaviors they want to become part of their everyday work.

So, let me ask you one final question:

What behaviors and daily routines would you need to change in your organization to create the culture you want?

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