Understanding, measuring and changing organisational culture

A strong organisational culture forms the foundation for sustainable success. It influences how people work together, respond to change and how customers experience the organisation. Yet culture often remains an abstract concept: something you can feel, but which is difficult to describe or influence. At Lifeguard, we have been helping organisations strengthen vitality, behaviour and culture for more than twenty years. In this article, you will discover what organisational culture really is, why it has such a significant impact and how you can measure and develop it effectively.

Organisational culture can be seen as the personality of an organisation: the combination of beliefs, values, behaviours and unwritten rules that shape how people work together. It is what employees say when someone asks: “How do things really work around here?”

Organisational culture consists of several layers:

These are the concrete elements you can see, hear and experience:

• Office design
• Dress code
• Rituals, celebrations and common meeting formats
• Communication style

Artefacts send clear signals, but they do not yet explain why people behave the way they do.

This layer concerns what the organisation considers important:

• Collaboration
• Innovation
• Safety
• Results

These values may be formally expressed in mission and vision statements, but they are also communicated informally through patterns of behaviour.

This is the deepest layer and is often unconscious.

These are the beliefs employees take for granted:

• “We mainly solve problems ourselves.”
• “Making mistakes is risky.”
• “The customer always comes first.”

These beliefs ultimately shape the culture because they influence behaviour, decisions and the way people work together.

A strong, healthy organisational culture has a direct impact on performance. Various studies show that:

• Organisations with a strong culture can have up to 72% lower staff turnover.
• Highly engaged teams can achieve 20–25% higher productivity.
• A positive culture contributes to lower sickness absence and greater innovation.

A healthy culture also creates agility. We see this among Lifeguard clients too: organisations that invest in vitality, psychological safety and leadership development often find that collaboration improves, people take more responsibility and change is implemented more smoothly.

Values only become valuable when they are visible in behaviour, and that is exactly where culture plays a crucial role.

Organisational culture consists of a range of visible and invisible elements:

1. Rituals

Rituals give an organisation a recognisable structure. Daily team check-ins, quarterly meetings and small celebrations create rhythm and connection. They ensure that colleagues meet regularly, reflect on successes and share challenges. These recurring moments make collaboration more predictable, strengthen team spirit and provide direction in day-to-day work.

2. Symbols

Symbols tell the story of an organisation without words. The logo, office design, language and even team names all communicate a message. A CEO who is often visible on the work floor, for example, symbolises accessibility. These visible signals help create a shared identity and show employees what the organisation stands for.

3. Norms and values

Norms and values shape how people behave and work together. They may be formally documented or develop informally over time. Examples include giving honest feedback or strictly meeting deadlines. These rules create clarity, guide decisions and influence how employees interact with one another. In this way, they form the organisation’s moral compass.

4. Beliefs and assumptions

Beneath the surface lie the beliefs and assumptions that shape thinking within an organisation. They are often unspoken, but strongly influence how people act. Examples include the belief that innovation is essential or that making mistakes is acceptable. These core ideas influence decision-making, collaboration and willingness to change.

Cultural change is not a sprint, but a marathon.

Although many organisations hope for rapid transformation, sustainable behavioural change usually takes between 18 and 36 months. This is because culture does not change through plans or strategies alone, but through consistently different behaviour.

Important considerations include:

• Culture is a continuous process: development is always taking place, even without intervention.
• Short term: visible behavioural change within teams (3–6 months).
• Medium term: impact on collaboration, energy and motivation (6–18 months).
• Long term: structural embedding in systems, processes and leadership (18–36 months).

It is crucial that change is supported by both leaders and employees.

Measurement is essential if you want to make culture tangible. Lifeguard uses methods including vitality assessments, behavioural analyses and cultural diagnostics.

Commonly used methods

Culture scans
Interviews, focus groups and observations to uncover deeper beliefs and assumptions.

Surveys and pulse measurements
Questionnaires used to identify trends in areas such as engagement, trust and psychological safety.

Behavioural observations
Looking at how teams collaborate, give feedback and make decisions.

KPIs for monitoring culture

• Employee satisfaction (eNPS)
• Staff turnover
• Sickness absence
• Engagement scores
• Innovation and improvement behaviour
• Psychological safety
• Vitality levels

By measuring regularly, you gain an objective picture of the current culture and where adjustments may be needed.

Cultural change does not begin with a plan on paper, but with people. These are the steps Lifeguard often uses:

1. Define a clear objective and desired behaviour
What kind of culture is needed to deliver the strategy? And what behaviour supports that culture?

2. Engage leadership
Leaders account for 70% of how culture is experienced.
Role modelling, language and consistency are crucial.

3. Actively involve employees
Employees are the carriers of culture.
Involve them in dilemmas, solutions and new ways of working.

4. Create psychological safety
Without safety, there is no change.
Teams need to feel free to experiment, make mistakes and give feedback.

5. Adapt structures and processes
Culture will not change if systems continue to reward old behaviour.
Think about performance reviews, meeting structures and leadership style.

6. Rituals and communication
Rituals reinforce desired behaviour.
Regular communication provides clarity, direction and energy.

Pitfalls to avoid

• Assuming culture can be changed without changing behaviour
• Managing change purely from the top down
• Allowing too little time and support
• Measuring too infrequently
• Treating culture as an image exercise rather than a lived reality

Culture is created by what people do, not by what appears in presentations. Both leaders and employees play an important role.

The role of leaders

• Provide direction and clear expectations
• Lead by example
• Create psychological safety
• Focus on behaviour, not just results
• Make successes visible and celebrate progress

The role of employees

• Act as ambassadors for the culture
• Bring values to life in everyday interactions
• Give feedback, share successes and highlight problems
• Take ownership of their work and collaboration

Culture is something you create together. When leaders and employees genuinely live the same values, you create an organisation where people enjoy working and are able to perform at their best.