
A Better Workday Just Got a Little More Balanced
I worked with a company two years ago that changed my outlook on workplace culture. We sat down in a meeting room, closed off from the “lesser, entry-level layer” of the organization, with just us: the organizational consultant (me), the CEO (who, mind you, was sweating through his blue jacket for whatever odd reason), and upper-level management.
They brought me into the mix with a single question: “Is our team performing well?” You may laugh, but yes, this was actually my day: listening to the CEO lecture for forty-five minutes on how profit was up, how the focus group last week went incredibly well, and how the “Teams Are People, Too!” workshop “inspired employees.”
Then came the awkward part when I had to interrupt and ask: “Um, sir? Did you talk to any of the workers?”
The answer, as you will have guessed, was “no.”
What Work Culture Isn’t
Every organization I’ve worked with has, at some point, tried to fix its culture with a candid workshop, a rephrased mission statement, or a nicely designed PDF that gets emailed around once and is then quietly forgotten. I want to save you the trouble of that. You see, culture isn’t a mission statement.
It most surely isn’t the poster portrayed in the lobby or the three adjectives on the company’s careers page. Rather, culture is what your people actually do when nobody with a title is in the room, and that’s the whole definition. Yet most culture initiatives never get anywhere close.
I spend a lot of my consulting work in exactly this gap: not good culture versus bad culture, but the disconnect between “the culture a company thinks it has” and “the one it’s actually operating within.” I’ve learned what it is, why it moves real financial numbers, how it quietly preserves itself, and what a leadership team can do about it starting this week.
What Work Culture Is
Many executives and entry-level workers alike have heard the term “workplace culture” and somehow find themselves believing that it is simply the “emotional” feeling a company has when you are working there. Google has been highly regarded as a company known for taking extraordinary steps, but what stands out to me most is its openness. Have you ever been to Google HQ? I have, and I was incongruously there when they came up with Google Maps.
It was not the innovation of a team, mind you, but rather, they had something called “20% time,” which meant that every Friday, employees had the day to themselves — paid — to come up with new ideas. They knew that their team was well-versed, talented, and well-suited to such a concept. This also gave the world Gmail.
So, if Google Maps was the work of one person, then wouldn’t their culture have been “openness”? Wouldn’t you see their culture as one that invites initiative, expects employees to feel empowered, and is a place where you could probably find a massage parlor? Furthermore, rather than simply describing its culture, did the workplace show or tell employees what that culture would be? They showed it, clearly, and per this discussion, that is what workplace culture is, but it is not the full definition.
From the Found of Workplace Culture
Organizational psychologist Edgar Schein (ironically, the same researcher most responsible for turning “culture” into an actual field of study) contended that this philosophy operates on three levels, and only the deepest one reliably predicts behavior. Level one consists of artifacts: dress code, office layout, and other niceties such as whether the CEO has a corner office. Level two consists of espoused values: what the company says out loud, in the onboarding deck, or on the motivational print in a line item. Level three consists of underlying assumptions: the unspoken beliefs about how things actually work there, such as what’s safe to say, who really holds power, and what happens when you fail in public.
Nearly every corporate culture initiative lives in levels one and two, seemingly refreshed with new paint and rewritten language. Level three, the part that actually runs the show, almost never gets touched, which helps explain why these initiatives rarely survive their first difficult quarter.
This isn’t mere opinion. Researchers at MIT Sloan compared stated corporate values against how employees actually rated their companies on those same values, across more than 400 large organizations. The correlation was essentially zero. Not weak, mind you, but essentially zero—even at companies that, on paper, take their values seriously.
Volkswagen, Wells Fargo, and Barclays all listed integrity as a core value in the years before their respective scandals broke. Boeing had integrity, quality, and safety on the wall before a string of well-documented safety failures. The words on the poster were never truly the problem, evidently, but they also were not what was running the company. Culture isn’t the soft initiative you fund after the real strategic bets. The data says it might be the strategic bet with the best return on the list. None of this matters to a P&L unless it moves real numbers, so here are some.
10.4× more powerful than pay
Toxic culture as a predictor of employee turnover, according to MIT Sloan research cited in the article.
20% global employee engagement
The engagement figure attributed to Gallup’s latest research in the article.
Empirical Evidence That Culture Defines Outcomes
Harvard Business School researchers John Kotter and James Heskett tracked 200 companies over 11 years, comparing firms with strong, adaptive cultures against those without. Revenue growth measured 682% versus 166%, and stock price growth measured 901% versus 74%. They controlled for differences as rigorously as the study allowed, matching near-identical companies against each other, and the gap held.
More recently, MIT Sloan researchers analyzed 34 million employee profiles from people who left their jobs during the Great Resignation. Compensation ranked sixteenth as a predictor of who quit. A toxic culture proved 10.4 times more powerful than pay. You could raise every salary in your company tomorrow morning and still lose people faster than a competitor with worse pay and a healthier culture.
Gallup’s newest numbers put global employee engagement at 20 percent (the lowest it’s been since 2020), with an estimated $10 trillion in lost productivity attached to that figure annually. That’s not a number most leadership teams have on a slide anywhere, which might be part of why it never quite gets addressed.
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How Culture Perpetuates Itself (And What to Do About It)
So, if the poster doesn’t run the culture, what does? Well, reinforcement, of all things.
Culture is the residue of what gets rewarded and punished, repeated often enough that nobody notices it is even happening. Organizations reward one behavior and then act genuinely surprised when they don’t get a different one in return. How a company handles its first real crisis (a missed deadline, a public failure, or a layoff that goes sideways) becomes institutional memory. Years later, nobody remembers the actual event.
“None of this changes with a new values statement. It changes with a few specific moves.”
They just remember “this is how we handle things here,” and from then on, that is how things are handled. Three places this shows up especially clearly:
How meetings end. Healthy teams leave with a named action and a named owner. Dysfunctional ones leave with “let’s circle back,” which really means the problem now belongs to everyone, and therefore no one.
What happens after a mistake. Google spent two years studying its own teams, expecting the answer to be talent mix. It found nothing there. What actually predicted a team’s effectiveness was psychological safety, or whether people felt safe admitting a mistake without getting punished for it later.
Who’s allowed to disagree with the senior person in the room. In a healthy culture, someone pushes back in the actual meeting and gets a real answer. In a dysfunctional one, the honest conversation happens afterward.
(On that last one, researcher Amy Edmondson found something similar studying hospital nursing units: the best-performing teams had the highest reported error rates—not because they made more mistakes, but because they were the only ones willing to talk about them out loud. If your team never surfaces a problem, that’s not always a compliment to your team’s hard work; it may be another way of saying “We don’t listen to you.”)
None of this changes with a new values statement. It changes with a few specific moves:
Audit your last four or five promotions against what you claim to value. If the person who took solo credit for a group project got the green light, you’ve already told your company what you reward.
Build a public recovery ritual for failure. Name the mistake, say what was learned, thank whoever surfaced it, and describe what changes next. It takes four sentences, modeled from the top.
Make disagreement visibly cheap. The first time someone challenges a leader in a real meeting and gets treated well for it does more cultural work than a year’s worth of “we value open communication” language.
Hire and onboard for the culture you actually run, not the one on your careers page.
Measure behavior, not sentiment. Promotion patterns and who gets quietly protected tell you more than an annual engagement survey ever will.
At The End of the Day
None of this requires a rebrand or a consultant flying in for a one-day workshop. It requires a leadership team willing to look honestly at the gap between what it says and what it rewards, and the discipline to fix the second one first. That gap is where I spend most of my time as a consultant, and it’s usually more fixable than people expect.
If you want to think through where it might be showing up in your own organization, that’s a conversation I’m always happy to have. You can find more of my thinking on this at ryanwmcc.com. I’ll be at the suites on November 6 discussing this topic!
About Ryan W. McClellan, MS
Bridging Psychology & Creative Marketing Strategy
Ryan McClellan is a Behavioral Marketing Strategist with 18+ years of experience in both digital marketing and consumer psychology, with a mission to help you grow.
