How leadership shapes organisational culture
If you’ve ever noticed how a team changes when a leader leaves — for better or worse — you’ve felt the link between organisational culture and power.
Although culture is a team sport, leadership plays an outsized role in how it’s shaped and reinforced. From the big things (like strategy) to the small stuff (like saying thank you), leaders send strong signals about what’s OK — and what’s not.
If a leader encourages openness, celebrates team wins, and owns their mistakes, it can create a culture where people feel safe, seen, and supported. But if they reward only individual results, avoid tough conversations, or play favourites, that shapes culture, too.
As researchers Bass and Avolio found, leaders who go beyond managing day-to-day tasks — those who inspire, challenge, and care about their teams — tend to create healthier, more productive cultures. These are known as ‘transformational leaders’.
Transformational leaders don’t just focus on hitting targets. They’re interested in how the work gets done and how people grow along the way.
You’re probably working for a transformational leader if they:
Bass and Avolio argued that leadership and culture are deeply intertwined: the kind of leadership you have directly shapes the culture that grows. And over time, that culture influences how people feel, behave, and perform at work.
But understanding the link between culture and power doesn’t just help leaders — it helps all of us name what’s going on, speak up when something feels off, and appreciate when we’re part of something good.
Bass, B. M., & Avolio, B. J. (1993). Transformational leadership and organizational culture. Public Administration Quarterly, 17(1), 112-121.