Culture as Catalyst: How Values-Driven Leadership Powers Organisational Change
- truthaboutlocalgov
- Nov 13
- 7 min read
Local government in England is on the brink of its most significant transformation in half a century. By 2028, district and county councils will be dissolved, replaced by consolidated unitary structures designed to streamline governance and improve efficiency. This isn’t just a structural shake-up it’s a cultural earthquake. Why? Because research consistently shows that structure alone doesn’t deliver sustainable change. McKinsey’s global study on transformation found that 70% of large-scale change programs fail, and the number one reason is cultural resistance. Similarly, Deloitte reports that organisations with strong, adaptive cultures are 2.5 times more likely to succeed in transformation initiatives.
This matters for local government because the stakes are enormous:
£100 billion in combined annual budgets will be managed under new governance models.
Over 1.3 million employees will need to adapt to new systems, processes, and leadership structures.
Communities expect continuity of services during a time of unprecedented disruption.
As Emma Kelly from Barrett Values Centre puts it:
“Culture really is that catalyst… it can create friction or flow.”
Culture determines whether this transformation becomes a success story or a cautionary tale. Without a thriving, values-driven culture, even the most well-funded initiatives risk failure. Conversely, when culture aligns with strategy, organisations can achieve up to 30% higher performance outcomes. This blog explores why culture matters, how leaders can leverage it as a strategic enabler, and what the data tells us about its impact on organisational success.
What Does Culture Really Mean in Change?
Culture isn’t Friday beers or office cakes. It’s the invisible operating system of an organisation the shared values, beliefs, and behaviours that shape every decision and interaction. As Emma Kelly explains:
“Culture tells you what’s going on, how it creates friction or flow in an organisation.”
When culture aligns with strategy, transformation accelerates. When it doesn’t, resistance grows and the numbers prove it. Harvard Business Review reports that 70% of change initiatives fail due to cultural resistance, making culture the single biggest barrier to success. McKinsey’s research adds that organisations with strong, adaptive cultures are 2.5 times more likely to deliver successful transformations. The impact is tangible:
Companies that prioritise culture during change see 30% higher employee engagement and 19% greater profitability (Gallup).
Conversely, toxic cultures cost the global economy $8.8 trillion annually in lost productivity (MIT Sloan).
Culture isn’t a “soft” concept it’s a hard-edged performance driver. It determines whether your organisation thrives or stalls when facing disruption. In the context of local government’s structural overhaul, culture isn’t just important it’s existential.
Culture as a Strategic Lever
Culture isn’t a side note it’s the lever that determines whether transformation succeeds or stalls. Emma Kelly emphasises the role of leadership:
“Leaders must think about their impact the leadership shadow and integrate culture into everything they do.”
This concept of the “leadership shadow” is critical. Leaders set the tone for behaviours, priorities, and decision-making. If they model openness, collaboration, and adaptability, those values cascade through the organisation. If they default to fear or control, resistance hardens.
External research reinforces this. McKinsey found that organisations with strong, adaptive cultures achieve three times higher total shareholder returns than those with weak cultures. Deloitte adds that companies embedding culture into transformation strategies are 1.7 times more likely to achieve long-term success. In public sector terms, this translates into better service delivery, higher citizen satisfaction, and improved workforce engagement.
The financial and operational impact is clear:
Organisations with aligned culture and strategy outperform peers by 30% on key performance metrics (PwC).
Employee engagement rises by 50% when leaders actively champion cultural values (Gallup).
Case in point: St Helens Council under Chief Executive Kath O’Dwyer offers a powerful example. Facing entrenched fear and low morale, O’Dwyer prioritised cultural renewal removing fear, fostering job security, and building trust. The result? A thriving organisation ready for innovation, improved performance indicators, and stronger community outcomes.
Culture isn’t a “soft” issue it’s the strategic accelerator that turns plans into results.
Common Cultural Barriers
Emma identifies the biggest barrier:
“Not understanding the culture you have and how it holds you back.”
This is a critical insight. Leaders often launch transformation programs without diagnosing their existing cultural landscape. According to PwC, only 28% of organisations actively measure culture, leaving most blind to the very factor that determines success. When culture is rooted in caution, hierarchy, or status quo thinking, efficiency-focused change will stall. The consequences are costly:
70% of change programs fail due to cultural resistance (Harvard Business Review).
Organisations with misaligned culture and strategy experience 48% higher employee turnover and 30% lower productivity (Gallup).
Before prescribing solutions, leaders must pause and diagnose. Cultural audits, values assessments, and employee sentiment analysis are essential to uncover hidden blockers and identify opportunities for alignment.
Tools for Cultural Transformation
Culture can feel intangible but it’s measurable and actionable. Barrett Values Centre offers a proven model inspired by Maslow’s hierarchy of needs, mapping organisational values across three levels:
Foundation: Safety, trust, relationships, and effective systems.
Evolution: Collaboration, innovation, adaptability, and continuous learning.
Impact: Community, partnership, purpose, and societal contribution.
Emma’s analogy nails it:
“You need a solid foundation to build a skyscraper.”
Without psychological safety and trust, innovation cannot thrive. Barrett’s Cultural Transformation Tools (CTT) provide data-driven insights into current culture, desired culture, and leadership values. These tools have been deployed in 94 countries, helping organisations bridge gaps and accelerate change. The results speak for themselves:
Organisations using Barrett’s model report up to 40% improvement in employee engagement within 12 months.
Cultural alignment correlates with 20–30% higher organisational performance (Barrett Values Centre global impact study).
Culture isn’t guesswork it’s a strategic asset that can be measured, managed, and optimised.
Culture and Well-being
Culture isn’t just about organisational performance it directly shapes employee well-being. Emma Kelly explains:
“A thriving culture accelerates well-being; a toxic one destroys it.”
The evidence is compelling. Gallup’s State of the Global Workplace report shows that employees in positive, values-driven cultures are 3.8 times more engaged, 23% more productive, and 66% less likely to experience burnout. Conversely, toxic cultures are linked to higher stress, absenteeism, and attrition costing UK employers an estimated £28 billion annually in lost productivity and turnover (CIPD).
Why does this matter for local government? Because well-being isn’t a “nice to have” it’s a performance multiplier. Councils with strong cultural foundations report:
Lower sickness absence rates (up to 20% reduction).
Higher retention of critical talent, reducing recruitment costs.
Improved citizen satisfaction, as engaged employees deliver better services.
Culture and well-being are inseparable. A healthy culture creates psychological safety, clarity of purpose, and trust all essential for resilience during transformation.
Hybrid Work and Human Connection
Post-COVID, hybrid work has become the norm. But many organisations still cling to outdated assumptions about culture. Emma challenges this thinking:
“We’re trying to solve culture with an old mindset culture isn’t Friday drinks; it’s how we drive business.”
The data backs her up. Microsoft’s Work Trend Index reveals that 83% of employees say culture is more important in hybrid environments than ever before. Yet Gartner reports that only 25% of organisations have a clear strategy for maintaining culture in hybrid work. So what works? Leaders must be intentional:
Create virtual spaces for connection informal check-ins, digital coffee breaks, and collaborative platforms.
Model inclusive behaviours turn cameras on, invite diverse voices, and prioritise psychological safety.
Embed cultural rituals digitally recognition programs, shared learning sessions, and transparent communication.
Research shows that organisations investing in digital collaboration tools see 25% higher team performance and 30% stronger innovation outcomes in hybrid settings (Gartner). Culture isn’t about proximity it’s about purpose and connection.
Making Culture a Strategic Priority
Culture cannot remain an HR initiative it must become a board-level, CEO-driven priority. Emma Kelly is unequivocal:
“Put it on the top table culture needs to be a CEO initiative.”
Why? Because when culture is treated as a side project, it falls into a cycle of short-term fixes that peak and fade. Deloitte research shows that organisations embedding culture into strategic planning are 1.7 times more likely to achieve long-term success. Similarly, PwC reports that 84% of executives believe culture is critical to business success, yet only 28% actively measure it. To make culture stick:
Integrate it into strategy: Align cultural values with organisational objectives.
Embed it in systems and processes: Recruitment, performance management, and decision-making should reflect cultural priorities.
Measure and monitor: Use data-driven tools to track progress and adjust interventions.
When culture becomes a strategic enabler, transformation doesn’t just happen it lasts.
Emerging Trends
The cultural landscape is shifting fast. Three trends stand out:
AI and Culture Readiness: Automation and AI adoption will test organisational agility. McKinsey predicts that 50% of work activities could be automated by 2030, requiring cultures that embrace continuous learning and adaptability.
Gen Z Expectations: By 2030, Gen Z will make up 30% of the workforce (World Economic Forum). Their priorities flexibility, purpose, inclusion demand cultures that value diversity and social impact.
Well-being Resurgence: Mental health is back on the agenda. Gallup reports that 44% of employees globally experience daily stress, making cultural interventions essential for resilience and retention.
Organisations that anticipate these trends and adapt their cultural strategies will lead the way in performance and innovation.
Emma’s Top 3 Tips for Leaders
Emma distils cultural transformation into three actionable priorities, each backed by research:
Look inward: Assess your leadership team’s impact on culture.
Leadership behaviour sets the tone for organisational culture. MIT Sloan research shows that 70% of cultural tone is shaped by leadership actions. Leaders who model transparency, adaptability, and empathy create psychological safety a key driver of innovation and engagement. Conversely, leaders who default to fear or control foster resistance and disengagement.
Align strategy and culture: Culture accelerates objectives when aligned.
Deloitte reports that organisations with cultural alignment are 1.7 times more likely to achieve strategic goals. When culture and strategy pull in the same direction, transformation accelerates. Misalignment, however, creates friction leading to delays, cost overruns, and morale issues. For local government, this means embedding cultural values into every strategic priority, from service redesign to digital transformation.
Get the right data: Diagnose before acting data-driven decisions prevent missteps.
Despite culture being a top driver of success, only 28% of organisations actively measure it (PwC). Barrett Values Centre’s Cultural Transformation Tools (CTT) provide measurable insights into current and desired culture, enabling targeted interventions. Organisations using these tools report up to 40% improvement in engagement within 12 months and 20–30% gains in organisational performance.
Final Thought
Culture isn’t fluffy it’s measurable, actionable, and transformative. As Emma concludes:
“With the right culture, you can accelerate your strategy and achieve your objectives efficiently and excellently.”
The numbers speak for themselves:
70% of change initiatives fail due to cultural resistance (Harvard Business Review).
Strong cultures deliver 3x higher returns and 30% better performance outcomes (McKinsey).
Positive cultures reduce burnout by 66% and increase engagement by 3.8x (Gallup).
For local authorities navigating unprecedented change, culture isn’t a side project it’s the foundation for success. When culture becomes a strategic enabler, transformation sticks, well-being improves, and communities thrive.
