July 2025 – What should a company do after culture issues are uncovered?

In light of recent high-profile workplace culture issues, HRM sought insights on how companies can effectively rebuild their cultures. Companies like Nine Entertainment, WiseTech, and Merivale have faced scrutiny over leadership behaviors and toxic workplace cultures, prompting reviews and policy changes. While these actions are vital first steps, the key question remains: will they drive lasting cultural change?

Understanding the Root Causes
Jason Clark, Director of Worklogic, emphasizes the importance of reviewing feedback—such as exit surveys and employee complaints—to understand cultural issues. Companies should clarify the scope and goals of the review, ensuring transparency and realistic expectations, particularly regarding disciplinary actions. He recommends appointing “culture champions” to oversee the process and conducting follow-up reviews after six to twelve months to gauge progress.

Systemic vs. Diagnostic Approaches
Joan Lurie, CEO of Orgonomics, warns against focusing solely on surface-level issues, like bad behaviors, without addressing underlying systemic problems. Cultural issues often arise from implicit rules, relationships, and power dynamics. For lasting change, companies must move beyond simple diagnostics and engage in a discovery process that uncovers and alters these hidden patterns.

Avoiding Quick Fixes
Lurie also criticizes the tendency to apply broad, one-size-fits-all training programs—such as unconscious bias or harassment workshops—to fix cultural problems. These “sheep-dip” solutions are often ineffective because they fail to address the root causes, like leadership’s role in maintaining toxic behavior.

Symbolic vs. Systemic Change
Both Clark and Lurie stress the need for systemic, not just symbolic, change. While symbolic actions like public apologies or firing problematic leaders can demonstrate accountability, true cultural transformation requires a shift in leadership behaviors and organizational systems. For change to be meaningful, it must involve a reset in leadership roles and the broader organizational network.

Leadership Accountability
HR’s role extends to ensuring that leadership takes accountability. This may involve difficult conversations with executives, highlighting their role in perpetuating toxic behaviors. Lurie advocates for “system leadership,” where leaders are co-accountable for each other’s actions, rather than just their own. Clark suggests incorporating culture-related KPIs and leadership training into performance frameworks to hold leaders responsible for fostering a positive culture.

In conclusion, rebuilding workplace culture demands more than reviews and policy changes. It requires addressing systemic issues, holding leadership accountable, and fostering a culture of co-responsibility.

Source
HRM Online

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