Author: Kavitha Gunesekera
M.Sc. Business Psych (LMU), B.A. English & ELT (OUSL), SHRM-SCP (USA), ATCL (London), TKT
Organisational culture has taken centre-stage as the world continues to shift towards remote work and hybrid models. The pandemic has forced organisations to rethink how they function, communicate, and maintain their identity. For transformational coaches, understanding the role of culture in this transition is crucial to supporting leadership and employees in navigating this change. In this short article, let’s explore how organisational culture is defined, its influence on employee motivation and retention, and its evolution in the distributed workplace.
What is Organisational Culture?
At its core, organisational culture is the set of shared values, beliefs, and behaviours that shape how people within an organisation interact. It influences everything from decision-making to how employees perceive their roles. As Groysberg et al. (2018) aptly put it, “Culture is the tacit social order of an organisation: It shapes attitudes and behaviours in wide-ranging and durable ways.” It’s the unseen force that guides daily operations, both in the office and in remote settings.
Edgar Schein (2017) adds another layer by defining culture as “accumulated shared learning” that emerges as an organisation adapts to both external challenges and internal dynamics. This shared learning forms the backbone of the company, providing stability and a sense of belonging for employees.
Culture’s impact on employee motivation and retention
Culture and employee motivation are intricately connected. An organisation’s values, rituals, and communication styles significantly impact whether employees feel engaged, motivated, and loyal. Herzberg’s two-factor theory of motivation offers a useful lens through which we can analyse employee satisfaction. Herzberg distinguishes between hygiene factors (like job security and salary) and motivators (like recognition and personal growth). If hygiene factors are lacking, no amount of employee recognition or culture-building initiatives will create a motivated workforce.
Moreover, Schein’s metaphor of the “lily pond“—where surface-level values (the flowers) are supported by deeper, often invisible cultural assumptions (the roots)—offers a useful framework for understanding how culture influences every stage of an employee’s journey. If these “roots” are not well-nourished, employee engagement and retention will suffer.
In today’s distributed workplace, employees no longer experience culture solely within the walls of an office. Culture must be actively communicated and reinforced, regardless of physical location. For example, an organisation that emphasises flexibility and trust in its values needs to demonstrate these qualities through clear policies that support remote work, flexible hours, and transparent communication.
Navigating Culture in the distributed workplace
The pandemic accelerated the shift toward remote work, forcing companies to adapt their cultures to survive. This shift has left many organisations questioning how to maintain a strong, cohesive culture when employees are physically apart. According to research from PricewaterhouseCoopers (2021), companies with strong, well-defined cultures were better able to maintain performance and pivot during the pandemic. In fact, 64% of companies with a clear culture saw collaboration improve or remain stable during the crisis.
Remote employees may feel disconnected from their organisation if they sense a lack of transparency or support, leading to disengagement or attrition.
For the transformational coach, this presents an opportunity to guide leaders in fostering a culture that addresses both the practical needs of remote employees and the deeper psychological needs of connection and belonging. It’s about more than just virtual team-building exercises or online happy hours; leaders need to understand the underlying assumptions that drive employee behaviour and motivation.
Culture and Change: Opposing forces or natural allies?
And why is this important? Well, of course, because culture doesn’t simply exist. Culture is faced with its greatest challenge when it comes head-to-head with— you guessed it—change. But can we state that change is the enemy of culture? Absolutely not. They are merely warring neighbours who may continue to argue over a chink in the fence or a missing tennis ball, each accusing the other of being responsible. But with the right leadership, culture and change can co-exist and even thrive.
This is where the executive transformational coach comes in. The transformational coach is the mediator in this “neighbourhood feud.” The transformational coach’s role is to help leaders navigate the complexities of culture while driving change, making sure both forces can work in harmony. By guiding leaders to see that culture isn’t something that needs to resist change, but rather can evolve through it, you can help organisations remain flexible, adaptive, and true to their values, even in uncertain times.
Coaches play a vital role in helping leaders identify where culture and change are clashing and offer strategies to bridge those gaps. By doing so, you ensure that both can move forward, aligned with the organisation’s goals and vision. When leaders learn to balance these forces, they create resilient, motivated teams that can embrace change without losing their cultural foundation.
Practical Steps
How can the transformational coach support leaders in cultivating a thriving organisational culture in this new landscape? Here are a few key strategies:
- Encourage authentic communication: Culture is built on communication, and in a remote environment, it’s easy for messages to get lost or misinterpreted. Help leaders foster an open, transparent communication style that builds trust and reinforces the organisation’s core values.
- Focus on psychological safety: Employees need to feel safe to share their concerns and ideas. Encourage leaders to create spaces where employees can speak up without fear of judgement or reprisal, which is especially important in a hybrid or remote work environment.
- Align culture with strategy: As Kotter (2012) noted, “Change sticks when it becomes the way we do things around here.” The Coach can help leaders align their organisational culture with their broader strategic goals, ensuring that culture is not an afterthought but an integral part of business success.
- Foster inclusivity: Organisational culture should be inclusive of all employees, whether they’re in the office or working from home. Encourage leaders to regularly check in with remote employees, ensuring they feel valued and included in the company’s culture.
Closing thoughts
Organisational culture is a powerful force that shapes employee behaviour, motivation, and retention. In the distributed workplace, where remote and hybrid work models are becoming the norm, culture is more important than ever. Leaders must work towards creating and sustaining a culture that supports employee well-being, aligns with the organisation’s values, and drives business success. By focusing on authentic communication, psychological safety, and alignment between culture and strategy, coaches can help organisations navigate this new reality with confidence.
While culture and change might feel like opposing forces, they aren’t adversaries. With the right leadership—and the right coach—they can be the pillars of an organisation’s strength
