Organisational culture, the set of shared values, beliefs, and assumptions of the organisation, plays a large role in organisational effectiveness and performance. One of the main barriers to successful organisational transformation is the culture of the workplace.
Over time, organisational cultures generally evolve along with business strategy, and they become mutually reinforcing. The problem comes when the organisation’s leadership decides to implement a new strategy or change of direction that requires changes to the way people think and act at work.
From the perspective of organisational transformation, neglecting cultural change is one of the factors known to contribute to the high rates of transformation project failures. However, a cultural change program should support strategic objectives. If culture becomes the main focus and doesn’t add value to the strategic objectives of a business, then the costs may outweigh the potential returns.