The individual is always part of something bigger. We cannot ignore that much of our self-concept is shaped by the groups we belong to, influencing us through shared norms, values, symbols, practices, and even the language we use. Even in the workplace, the groups we form give rise to culture. Consequently, this raises the question of whether embracing a shared culture comes at the cost of individual identity.
Organizations often assume that a strong culture is fully unified. But the reality is that within them, smaller groups naturally develop their own ways of working, thinking, and relating, built upon the identities that distinguish them. How these microcultures create harmony or friction and impact how teams succeed is not always straightforward.
Microcultures are the distinct subcultures that emerge within the broader organizational culture. They develop their own norms, practices, symbols, and even artifacts—inside jokes, memes, or something as simple as a shared Excel template can become defining markers of a group’s identity. These microcultures form naturally, aligning with social identity theory: people seek out groups where they find shared meaning, connection, and belonging.
Instead of searching for quick solutions to the challenge of aligning employees with organizational culture, it helps to recognize the many ways microcultures shape the workplace, like how they influence rules, how employees navigate conflicting loyalties, and what happens when their values diverge from those of the broader organization. Some evolve to drive innovation, while others resist change. Even in organizations with strong oversight, certain microcultures persist in unexpected ways, and the shift to virtual work adds another layer of complexity.
Being aware of these dynamics and their underlying elements provides a starting point for viewing workplace culture in a more nuanced way and inspires the ability to recognize, respect, and learn from microcultures.
The Intersection of Personal and Social Identity in the Workplace
Our social groups shape our sense of belonging and add layers to who we are. As we move beyond national or ethnic affiliations, we find our identity in smaller, more intimate circles: the traditions of our families, the bonds with our closest friends, or even the teams we cheer for.
In the workplace, our affiliations provide a sense of purpose, self-worth, and belonging, and as individuals, we, in turn, influence the groups we belong to. This dynamic interaction creates an organic culture—one that naturally arises from our shared experiences, similarities, and commonalities (see Figure 1). However, for organizations to function effectively, some formalization is necessary. We need structure, rules, and guidelines—things like mission, vision, values, governance structures, and processes—to ensure consistency and alignment across the organization.
But here’s where it gets tricky: the moment we formalize this culture, it can become static. It’s no longer the fluid, evolving, ever-changing entity it once was. A formal culture has to be adhered to, enforced, and clarified. This leads to the assumption that people can simply conform to this collective identity when they enter the workplace.
When organizations artificially create culture, they’re essentially trying to force an answer to the question: “Who am I when I am here?” The greater the gap between “Who am I?” and “Who am I at work?” the weaker the alignment between the employee and the company’s culture.
In addition, a high workload, intergroup conflicts, constant change, or rigid procedural structures make it nearly impossible for individuals to embrace the bigger company identity. Instead of feeling connected to the whole, employees retreat into their more familiar microcultures, whether those are teams, departments, or informal social groups.
The Power and Risks of Microcultures
The various subgroups influencing our work identity can range from formal work groups and departments to more informal networks, like lunch buddies or even hobby groups. Imagine a group of employees from different departments who meet for a daily coffee break simply because they all drink decaf. Even this seemingly trivial connection contributes to a unique microculture. A microculture could be a workgroup, a department, or even smaller subgroups, like the group of people who share coffee breaks.
Microcultures allow organizations to maintain a unified culture while fostering diversity and inclusion. They provide employees with a sense of belonging beyond the overarching corporate identity, making workplaces more engaging and dynamic. Strong microcultures can boost morale, enhance collaboration, and even drive innovation as they create spaces where employees feel psychologically safe to express ideas and challenge norms.
However, there is a risk. Given the number of groups we belong to, our social identity becomes a complex and sometimes intricate puzzle. This multiplicity of roles often leads to role conflicts. Imagine an HR professional deeply invested in supporting their employees. They work closely with individuals from various departments, each with different values, priorities, and experiences. Now, suppose this HR professional wants to give raises to all employees based on merit, but the financial department has a strict budget and is hesitant. This creates a potential conflict: the HR professional’s desire to reward the team clashes with the financial constraints imposed by the company. But it goes deeper. The HR professional happens to be close friends with a member of the finance team, and they share a passion for veganism. Outside of work, they bond over their shared values, but within the office, their professional identities create friction between them.
In moments like these, employees are torn between their personal values and professional duties. This is the role conflict that arises from belonging to different groups, each with its own set of values, goals, and identities. The workplace is full of these competing dynamics, and sometimes, navigating them feels like juggling multiple versions of ourselves.
The reason is that microcultures are never neutral. Every microculture, no matter how positive, naturally creates a distinction between insiders and outsiders—an us vs. them dynamic. In the workplace, this often means that the broader organization itself becomes the “them.” Microcultures form around shared values, practices, or grievances, which can sometimes put them at odds with company-wide policies, leadership decisions, or the overarching corporate culture. Moreover, the meaning of concepts, goals, and behaviors can shift significantly from one microculture to the next.
When microcultures are healthy, they strengthen teams, enhance engagement, and improve retention. But when they feel threatened—whether by restructuring, policy changes, or leadership decisions—the fallout can be catastrophic. If left unaddressed, these tensions can lead to communication breakdowns, high turnover, low morale, decision-making paralysis, and workplace divisions.
Stop Fixing, Start Understanding
The instinct in organizational culture work is often to jump straight to solutions: to standardize, formalize, and proceduralize. But microcultures don’t work that way. They can’t be managed through another corporate initiative, another checklist, or another best practice borrowed from a different company. The biggest mistake organizations can make is assuming that what worked once will work again or that a single approach will fit all microcultures.
So before trying to “fix” microcultures, stop. Observe. Listen. Shift from doing to being aware.
Rather than forcing integration, start by understanding how microcultures naturally emerge and function. Instead of prescribing engagement tactics from the top, pay attention to where people already feel engaged. What keeps teams together? What unspoken norms make them thrive? And where do microcultures resist, disengage, or turn toxic?
The modern workforce exists in a delicate balance between personal identity and social belonging, between choice and collective expectations. Organizations that fail to recognize this reality risk alienating employees rather than fostering connection. The most effective leaders won’t be those who impose uniformity but those who navigate complexity with curiosity, adaptability, and a deep respect for the different identities that shape their organizations.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 32, 2025 – Employee Performance Edition.
Increasingly complex business challenges require organizations to sharpen their strategy management systems, not merely for survival but for sustained success and growth. Setting objectives, examining the competitive landscape, scrutinizing internal organizational aspects, assessing strategies, and ensuring their systematic implementation are integral components of strategic management.
This points out that professionals aspiring to excel in strategic management must cultivate a diverse set of skills and competencies, but are these enough? In an interview with Performance Magazine, Dana AlSaaïd, the Director of Corporate Performance Management for the Ministry of Economy and Planning in Saudi Arabia, emphasizes that analytical thinking and foresight competencies are critical to gaining a competitive advantage in the field. She also believes that professionals must possess a deep understanding of their industry and its operations to anticipate trends, identify opportunities, and make informed decisions.
However, excellence in strategy should not be confined to a single individual. It can manifest through collaborative efforts and diverse perspectives. Dr. Marc Sniukas, a strategy advisor and leadership coach, said in his interview with Performance Magazine, “Strategy is about collective sense-making, forming a shared view of what is going on, what is needed as a response, and how the organization will do that.”
Hence, having a heightened awareness of the organization’s strategy at the individual level is important. As indicated in The KPI Institute’s State of Strategy Management Practice – Global Report 2023, strategy awareness ensures that all stakeholders comprehend the strategic direction, objectives, and initiatives. It empowers employees, team leaders, and managers to “align their actions and decisions with the organization’s strategic goals,” per the report.
Reality presents a different picture. The report indicates that although 44% of participants agreed with the effectiveness of strategic planning practices, a significant segment (17%) still perceived disconnection from business needs. Findings also reveal that executives exhibit the highest level of strategy awareness at 40%, with middle management following at 16%, and lower management and employees each registering at 7%.
Another essential factor in building a shared understanding is effective strategy communication. According to the report, even if a notable percentage of organizations (31%) aspire to communicate the strategy to all levels, a smaller portion (28%) regards strategy communication as primarily focused on decision-makers only.
Leaders must also strive to develop an internal culture that recognizes the value of competence in strategy management. Jeroen Kraaijenbrink, cofounder of Strategy.Inc, stresses the importance of internalizing strategy within an organization rather than outsourcing it to consultants. He argues that organizations should make strategy an integral, systematic, and routinary business process.
Where should professionals looking to expand their skills start? One important move is gaining insight into the business environment and the current capabilities of one’s organization in strategy management to identify the areas that require additional learning. For instance, the report above reveals that a significant number of professionals rate their capabilities in managing key performance indicators (KPI), especially in the selection process, at the lowest level. With this, the report recommends investing in skills development and acquiring knowledge related to KPI selection, a process that ensures the accurate tracking of strategic objectives to build alignment between measurement and strategy.
Just as strategy adapts to disruptive times, individuals striving for success must also evolve. However, this evolution should not be arbitrary. Professionals must direct their efforts strategically to achieve meaningful skill expansion.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Management Edition.
“An organization’s ability to learn and translate that learning into action rapidly is the ultimate competitive advantage.” This insight from General Electric (GE) Chairman and CEO Jack Welch captures a fundamental truth in today’s fast-paced business environment—where a strong performance culture rooted in continuous improvement can drive innovation and adaptability. Several studies consistently show the tremendous benefits of such a culture across various areas of business, from performance to innovation, and trends further validate this.
Personalized development plans are the result of performance culture, empowering employees to grow within inclusive, diverse, and tech-enabled ecosystems. Leading firms are also leveraging hybrid learning models tailored to individual and organizational needs, making education an integrated, adaptive journey crucial to business agility and innovation.
Meanwhile, employees in high-performing organizations are encouraged to adapt and reinvent themselves by fostering an attitude of constant learning. Through the development of a growth mindset, curiosity, and an openness to failure and experimentation, experiment-and-learn environments promote personal development and progress. An example of this culture is Google’s 20 percent time policy, which encourages staff members to dedicate time to their own ideas. This approach contributed to the creation of innovations such as Gmail and Google Maps, among others.
Similarly, Microsoft CEO Satya Nadella’s transformation of company culture in 2014 from competitive to learning-focused further illustrates the impact of this approach. By encouraging continuous learning, fostering a growth mindset, and empowering cross-functional teams through initiatives like Microsoft Learn and Hackathons, Nadella’s leadership has led to a resurgence in both innovation and profitability.
While these trends reveal ideas that can help build a performance culture, the biggest challenge is determining what such a culture actually looks like and how to sustain it, rather than having it be just a one-off initiative. To gain clarity, an organization should rethink its approach to performance culture and continuously improve it to make sure that the right people, behaviors, and systems are in place.
According to the Global Performance Audit Unit (GPA Unit)—a division of The KPI Institute specializing in strategy and performance management system (PMS) maturity assessments—what makes developing a high-performance culture tricky is that it extends beyond strategy and performance management systems. The GPA Unit states that, “With no actual framework to lay down its fundamentals, the performance culture is a holistic impersonation of the strategy and performance management system. While more than many organizations associate a high-performance culture with the proper working environment, there is much more to the concept than a friendly office, random perks, and casual benefits.”
A performance culture is characterized by solid employee engagement, continuous learning and development, an aligned performance management system, inclusive environment and workforce diversity, effective leadership and relationship management, sustainable work-life balance, and a commitment to the principles of governance, responsibility, and high accountability.
In addition, the GPA Unit emphasizes that people analytics and data-driven strategies have been providing useful insights into the core components required to transform culture from a collection of superficial perks to a more strategic aspect of an organization.
Measuring culture with KPIs – KPI results can help identify strengths and weaknesses in the existing organizational culture and facilitate decision-making to drive improvement.
Actively using culture surveys – Simple yet meaningful culture surveys can collect employee sentiment and feedback, becoming the perfect internal assessment tool.
Building on talent data and HR analytics – People analytics equips leadership with insight on talent recruitment and development, employee performance, and retention.
Relying on the performance management system to strengthen alignment – A structured and coherent performance management system will ensure that the performance culture is aligned with the strategic mission and values of the organization while maintaining focus, agility, communication, collaboration, and well-being.
This approach suggests that a performance culture does not mold employees who are simply focused on performing tasks but are also growing in ways that support the organization’s long-term strategic goals.
Assessing Performance Culture Maturity
How can an organization determine whether its performance culture is sufficient and sustainable enough to achieve continuous improvement? The GPA Unit recommends the use of the Performance Culture Maturity Model Framework v1.0 to ensure a systematic, scalable approach to building and evaluating organizational and individual competencies. Using this system also allows organizations to identify its culture’s strengths and weaknesses and nurtures the right cultural elements.
The expected behavior of this framework focuses on establishing a cycle of continuous learning, measurable development milestones, and strategic alignment of skills with core business objectives. One of the framework’s key dimensions exemplifying this is Education and Knowledge. By integrating this dimension, organizations move through stages of maturity from ad hoc learning efforts to an optimized, fully integrated culture of performance.
As organizations mature, best practices such as continuous feedback loops, knowledge-sharing platforms, and leadership-driven learning initiatives become embedded in their DNA. For example, as organizations progress, the expected behavior transitions from static skill development programs to dynamic, adaptive learning ecosystems that respond to industry demands. This shift encourages employees to engage in cross-functional knowledge-sharing initiatives, develop expertise aligned with market needs, and accelerate personal and organizational growth.
The other dimensions of the framework are Integrated Performance Capability, Communication and Leadership Support, Creativity and Education, Education & Knowledge, Benefits & Recognition, and Happiness & Well-Being.
The journey toward a mature performance culture isn’t a quick fix—it’s a continuous evolution fueled by a commitment to learning and an openness to change. When employees are empowered to develop their skills and contribute their insights, they become not just participants but catalysts of transformation.
While some may think things have changed, yet the Great Resignation remains as highlighted by ADP economist Nela Richardson said, “the great resignation is becoming the great stay.” Around 46% of professionals are thinking about leaving their jobs, compared to 41% in 2021, as surveyed by Microsoft and LinkedIn. Most of their reasons reflect the quality of their connection to their workplace, which defines the culture of belonging in an organization.
What is belonging?
According to the Harvard Business Review, for an employee to feel a sense of belonging, they must be:
Seen for their unique contributions;
Connected to their coworkers;
Supported in their daily work and career development; and
Proud of their organization’s values and purpose.
All of the aforementioned factors are highlighted in Maslow’s Hierarchy of Needs. As shown below (see Figure 1), psychosociological needs include belongingness, love, and esteem, while self-fulfillment includes self-actualization. Those represent three levels of the model, which build a culture of belonging.
Figure 1. Maslow’s Hierarchy of Needs | Source: SimplyPsychology
The figure also shows that belongingness comes before esteem needs and self-actualization, which means that unless an employee feels a sense of belonging in the workplace, they will not be able to perform beyond their daily tasks and reach their full potential. Employees need to be recognized, seen, and supported in the workplace to go the extra mile and send performance to a whole new level.
According to a survey conducted by the Pew Research Center, among the top three reasons for U.S. workers quitting their jobs was “feeling disrespected in their workplace.” A studypublished by The Sloan School of Management at Massachusetts Institute of Technology (MIT) found that toxic corporate culture was the leading predictor of attrition when studying the effects of more than 170 topics on employee attrition for Culture 500 companies in 2021.
The study found the main factors that contribute to a toxic work culture involve failure to promote diversity, equity, and inclusion (DEI); workers feeling disrespected; and unethical behavior. All three go against the very essence of building a culture of belonging in the workplace, leading to companies losing their talent and increasing their recruitment costs to fill the gaps.
Building a culture of belonging has several advantages for employers. For instance, increasing employee productivity can have a cascading positive impact, inspiring employees to go the extra mile. Furthermore, a culture of belonging boosts teamwork for better organizational performance. A culture of belonging also makes employees loyal to their workplace, reducing turnover.
How to build a culture of belonging
Below are some recommended building blocks for creating a culture of belonging in the workplace.
Communication:Two-way communication between managers and their teams is vital. This should be done formally and informally. Managers should not only depend on periodic, scheduled communication to connect with their team members, such as performance appraisals, project meetings, and update meetings. On the contrary, connecting with team members spontaneously can build a stronger bond, creating a real sense of belonging.
Strategy and values alignment: Managers should ensure that their team members understand the corporate strategy and the company’s values. Employees should understand the purpose behind their jobs and how they are contributing to the overall success of the company. This would emphasize their importance in the workplace.
Democratized decision-making: Involving team members in decision-making makes their voices heard, brings new ideas, boosts creativity, and makes everyone learn new things from one another.
Recognition and praise: Recognizing the achievements and contributions of employees should be done both privately and publicly. Each way has its own implications on the individual’s self-esteem and sense of accomplishment.
In conclusion, building a culture of belonging is a necessity. It is not easy for companies to replace talented employees, which is why it is crucial to foster loyalty to the company, and a culture of belonging makes this possible. Managers and leaders should ensure that their employees are not just trying to fit in and adapt to the company’s culture, but they actually have a positive connection to and trust in their company as this is what belonging is all about. A culture of belonging makes employees more resilient and able to come together during difficult times.
What is the most crucial asset owned by an organization? In the modern business landscape, a company might possess a well-defined vision, mission, and set of value drivers, along with a carefully articulated strategy and aligned objectives throughout all levels of the organization. Nevertheless, employees may fail to adopt these values, as these are not inherently embedded in their actions due to the absence of a performance-driven culture.
Hence, the company must foster a culture that actively facilitates the execution of its strategy. This culture should empower every employee to operate in alignment with the established value drivers, behavioral norms, and competencies set forth by the organization to fulfill its mission while being consistent with overarching corporate goals.
Central to cultivating a successful performance-driven culture are leaders. They stand as key influencers, coaches, and role models. Organizations must shift their focus from having managers who assert authority to nurturing leaders who coach and guide. These leaders should serve as advocates for aligning and interpreting corporate objectives for employees at all levels. Proper training is fundamental in equipping them to effectively manage their subordinates.
To enable leaders to construct a thriving performance-driven culture, organizations can implement the following steps:
Build the desired organizational culture. Foran organization to define the fundamental characteristics of its desired culture, it must translate its mission and vision into tangible value drivers, anticipated behaviors, and needed competencies. These elements must be communicated extensively to all employees, ensuring their adoption, with an emphasis on starting this process with the leaders themselves.
Highlight a leader’s role in cultivating performance excellence. Leaders are essential in shaping the desired performance culture within an organization. They lead by example, embodying cultural values, behaviors, and skills. This sets a motivating tone for their teams and encourages others to follow suit. Effective leaders foster openness and feedback, which leads to transparency and collaboration. They recognize and reward behaviors that match the culture.
Additionally, they provide coaching and growth opportunities to empower employees. This creates an environment where everyone feels valued and engaged, forming the basis of a performance-driven culture.
Foster performance by promoting employees’ mental wellness. In creating a culture of performance, the importance of nurturing a healthy mindset and prioritizing employees’ mental well-being cannot be overstated. A positive mindset is crucial for a culture of excellence. Employee mental health directly affects engagement, productivity, and satisfaction. Providing resources like counseling, stress management, and flexible work options not only demonstrates commitment to well-being but also leads to a focused, creative, and productive workforce. A mental health-supportive culture enhances individual well-being and aligns employees with organizational values, ultimately improving performance.
Empower performance culture through data interpretation. Organizations have a wealth of data that offer insights into employee engagement, performance, and overall health. Leaders must use data analytics to guide culture development. By studying metrics like satisfaction, productivity, and alignment with values, leaders can spot improvement areas and measure initiative impacts. This data-driven approach refines strategies based on evidence, creating a flexible culture. Regular data analysis shows employees that their contributions matter, boosting transparency and commitment to growth.
Successful examples
Googleprovides a noteworthy example of a strong performance culture as exemplified by initiatives like Project Aristotle and Project Oxygen. Project Aristotle highlights team dynamics and psychological safety, fostering an environment where all members freely share ideas and take calculated risks. Meanwhile, Project Oxygen focuses on effective leadership qualities such as coaching, communication, and genuine care for team members. These initiatives underscore Google’s dedication to establishing a culture of collaboration, innovation, and leadership, creating a thriving workplace for both teams and individuals.
Another notable example is Netflix,which embodies a performance culture centered around “seeking excellence.” This entails encouraging each employee to excel and contribute to produce their best work. Netflix values individual responsibility and open feedback, creating an environment where high standards and innovation are prized. The company hires top talent and empowers them with trust and autonomy. This adherence to excellence shapes their decision-making and has contributed to Netflix’s success.
Creating the right organizational culture lays the foundation for success. Leaders drive performance excellence by setting an example and supporting their teams. Taking care of employees’ well-being adds to the positive atmosphere, and using data helps leaders make smarter choices. Combining these aspects builds a culture where everyone thrives, innovation flourishes, and organizations prosper.
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This article is written by Chadia Abou Ghazale, a seasoned banking professional with 24 years of experience and who excels in budgeting, sales performance management, data analysis, and resource planning. Beyond banking, she is a dedicated reader of self-development topics and passionate networker. Chadia believes that life’s purpose is the pursuit of knowledge. Her extensive expertise and unwavering enthusiasm are a dynamic combination, driving success in her career and enriching her life’s adventurous journey.
