An organisational culture is an interconnected system. It’s about group behaviour, the beliefs that justify that behaviour, and the power structures between and within groups. These elements sustain one another. Beliefs are also interlinked, because they form part of the reasoning people use to explain why certain behaviours are ‘right’ or ‘appropriate’ in their organisation.
Many ways of behaving once started as solutions to problems people faced. Over time, these solutions become assumptions and local truths. No one asks why things are done that way anymore. That’s precisely what makes culture so tenacious: it lives in the collective memory of the organisation.
Interventions therefore need to touch several elements of the culture at once to shift the balance within that interconnected system. Focusing on only one aspect — for instance, targeting visible but dysfunctional behaviour — overlooks the fact that behaviour exists within a context of shared beliefs and internal power dynamics. Behavioural changes introduced in isolation often bounce back, because other parts of the culture remain unchanged.
A deeper understanding of what organisational culture really is also changes how we approach culture change. It’s not only about shared behaviour, it’s about the shared ways of thinking, acting and relating that define life within an organisation.
It’s equally important to distinguish what you want to preserve from what genuinely needs to change. Not everything has to be dismantled. In fact, many aspects of a culture work well and are worth keeping. The art lies in recognising those strengths, while consciously breaking through and reshaping the elements that no longer serve the organisation. In doing so, a culture emerges that fits better with today’s challenges and once again contributes to the organisation’s wider purpose and social mission.
Because the elements of culture are so tightly interwoven, cultural change is complex and far-reaching. It can’t happen all at once; it takes time. To do justice to this complexity, a phased approach is essential, one that gradually sets a process of transformation in motion.
The five phases of culture change
A culture never changes in a straight line. Yet you can distinguish five recognisable phases and each one demands something different from you as a manager or change leader. Each phase also calls for its own type of intervention.
- Preparation and decision to change
- Creating a sense of urgency
- Detaching from the existing culture
- Strengthening the emerging subculture
- Embedding and stabilising the new culture
Let’s walk through them step by step.
Phase 1. Preparation and decision to change
Every change begins with a realisation: the way we work now no longer fits what’s being asked of us. Sometimes that insight follows a crisis; sometimes it grows from long-standing issues that can no longer be ignored.
Organisational cultures are often deeply rooted in their history. But the world around them changes: markets, customers, technology, and social expectations evolve. These external shifts make it clear that the current culture no longer aligns with the values the organisation wants to create.
In this first phase, it’s crucial to understand where the friction lies. A cultural diagnosis can help, providing connected insights into questions such as: which behaviours are no longer appropriate in today’s context? What and who sustain those dysfunctional behaviours? Which dominant values, beliefs and assumptions underpin them? Who holds influence, formally and informally? Which parts of the current culture are worth preserving?
Only when the gap between how things are and what must change becomes visible can the leadership team make a genuine decision about change. That moment is critical. Recognising that continuing along the same path is no longer viable demands courage, self-reflection and unity among the organisation’s leaders.
The decision to change is typically accompanied by forming a change coalition, a group of people who take the lead in the process. This could be a dedicated project team guiding the culture change, or several working groups collecting ideas and feedback from across the organisation. This coalition becomes fertile ground for a new group of culture bearers, people who will later embody and spread the desired culture throughout the organisation.