Are you stuck? 3 culture challenges companies face year after year
- Matthew Burdock
- 5 days ago
- 3 min read
In the last year, we have witnessed a huge shift in the business landscape – again. Markets have felt the impact of warfare and tariffs, tech has accelerated, and customer expectations have evolved. Yet, for many organisations, particular cultural challenges continue to hold them back.
If strategy is your engine, culture is your traction. And some companies are still spinning their wheels in the same old ruts. At Culture Impact, we’ve spent years tracking the biggest cultural blockers across organisations – and three barriers show up time and time again. Not just because they’re hard to fix, but because leaders keep underestimating their impact.
1. Bureaucracy is still draining your momentum
Yes, bureaucracy. Still here. Still slowing everything down.
In our research in 2017, 33% of leaders cited bureaucracy as the biggest cultural barrier to strategic growth. Eight years later, many organisations still haven't cut through it; they’ve just digitised it. More platforms, more processes, more approvals.
But let’s be clear: more processes do not equal more progress. Every extra layer of sign-off, every meeting to decide the next meeting, is a tax on energy and pace. And in a world that rewards adaptability, bureaucracy punishes it.
Sound familiar? Uncover reasons why you are still falling victim to bureaucracy and how to overcome them.
2. Poor performance still goes unchallenged
High-performance cultures don’t tolerate mediocrity – they address it. But far too many leaders avoid the discomfort of tackling underperformance.
What does that cost? Focus. Morale. Credibility.
Managing poor performance consistently ranks among the most frequently cited leadership development needed in Hogan 360 assessments - reinforcing how universally challenging this skill remains.
When poor performance is left to fester, it sends a loud message: we tolerate this. And culture is nothing if not a pattern of what’s tolerated over time.
It’s not just about ‘holding people accountable’ – it’s about coaching, feedback, clarity, and support, and where necessary, having honest conversations and ‘grasping the nettle’. When leaders ignore performance gaps, high performers disengage, and standards drop. And soon, you’ve settled for average.
Read about our top 3 steps to address poor performance.
3. Internal competition is weakening collaboration
Many organisations still operate like a collection of rival teams – not one unified business.
Whether it’s divisions fighting for resources, regions withholding information, or functions working in silos, this kind of internal competition burns trust and slows progress. You can’t scale a winning strategy on fragmented foundations.
When collaboration becomes political, people protect territory instead of solving problems. And instead of aligning around shared goals, teams optimise for their own metrics.
What’s needed isn’t just teamwork – it’s cultural alignment. The kind that starts with shared purpose, is fuelled by cross-functional trust, and shows up in the daily rhythm of how people operate.
And this cultural alignment starts at the top! A FTSE 100 CEO made it very clear to his team...
“You work for this company, not your own divisions, and if I see any of you acting in your own interest, you’ll be out!”
Discover more about how you can move to a collaborative culture.
So, are you still stuck?
Do any of these issues resonate with you and your company?
We recently launched research into the link between an organisation’s culture and strategy and would appreciate your view.
Take our 2025 Culture Survey today, and we will send the completed report to you later in the year!