Strong leadership: the heart of a thriving workplace culture

Jason Byrne at Sullivan & Stanley explains why leadership is more than a title

 

Emily Shepperd, Chief Operating Officer at the Financial Conduct Authority, recently stated at a conference that poor workplace culture spreads "like a winter bug" and that "good or bad, it can threaten the health of an entire organisation."

 

While Shepperd was specifically addressing the financial sector, her words resonate across industries—particularly for businesses navigating transformation. This raises an essential question: How do CEOs and leadership teams actively cultivate and sustain a positive workplace culture?

 

The evolving role of the CEO

In today’s complex and often unpredictable business landscape, it’s easy for leaders to become singularly focused on strategy, performance and profitability. However, typically a company’s greatest asset is its people, and long-term success hinges on a workplace culture that empowers and engages them. 

 

Consider this: 61% of UK employees last year either left or planned to leave a job due to poor mental health. This underscores a crucial shift in leadership responsibility—from simply driving financial performance to fostering an environment that supports employee well-being, motivation, and collective achievement.

 

Success always requires persistent hard work, but how does this tally with employee well-being, the right to disconnect and an inclusive approach to a wide range of people with different skills, experiences and personal circumstances? 

 

This balance doesn’t happen by accident—it requires leaders who see culture as a strategic priority, not a secondary concern.

 

A prime example is Microsoft’s transformation under Satya Nadella. In 2014, when he took over as CEO, the company was struggling with internal competition and a lack of collaboration. Recognising the need for change, he and Chief People Officer Kathleen Hogan shifted Microsoft from a "know-it-all" culture to a "learn-it-all" mindset.

 

By championing continuous learning and collaboration, they created a more inclusive and dynamic workplace, ultimately driving higher employee engagement and strong business growth.

 

Modern CEOs are no longer just strategists; they are also culture architects. Their ability to integrate business objectives with the human elements of leadership — such as purpose, trust, inclusivity and accountability for high performance — determines the resilience and performance of their organisations over time, as well as colleague wellbeing. 

 

Transparency and consistency as catalysts for success

A workplace culture that champions consistency, fairness, and trust creates conditions for sustained high performance. Employees want to feel valued and see their leaders act with integrity. When there is alignment between leadership messaging and action, trust is built.

 

Transparency in performance expectations, decision-making, and rewards keeps employees motivated. Consistency in stated values and actual behaviours increases engagement and retention.

 

It can be tempting to seek quick fixes. However, addressing systemic barriers and inconsistencies, though harder, yields greater benefits. Organisational culture is not static—it evolves based on leadership behaviours and shareholder expectations. The values and priorities that CEOs and executive teams demonstrate as behaviours trickle down, influencing everything from decision-making to employee engagement.

 

A business that prioritises short-term financial gains at the expense of transparency, fairness, and employee well-being may see profitability, but such an approach rarely sustains high performance. Conversely, organisations that align leadership consistency, strategic clarity, and a shared mission with shareholder goals create cultures that drive innovation, retention, and resilient success. 

 

Balancing empathy and accountability

Earlier this year, a debate emerged around workplace culture and the call for more ‘masculine energy’—qualities like focus, drive, competitiveness, and decisiveness—versus ‘feminine energy’—empathy, collaboration, creativity, and adaptability.

 

It’s a false dichotomy. High-performing cultures thrive by integrating both, where decisiveness is tempered by empathy, and accountability is paired with collaborative support.

 

Take the example of flexible working. While some companies have mandated full-time office returns, others recognise that modern work requires more empathy. Offering flexible working policies isn’t just about convenience; it’s about understanding employees’ diverse needs and striking the right balance between well-being and performance.

 

The workplace has already evolved to prioritise mental health and flexibility. Rigid, transactional leadership models would only hold back growth—businesses succeed when they nurture both the human and performance-driven sides of their workforce.

 

Shared ownership of mission drives performance

One of the most powerful levers for high performance is shared ownership of a company’s mission. Employees perform best when they feel invested in the broader purpose of the organisation, and understand how their role contributes to this. 

 

This requires more than motivational speeches or surface-level engagement. It’s about consistency in leadership actions, transparency in decision-making, and fostering an environment where employees feel they have a stake in the company’s success.

 

The best leaders communicate not just what needs to be done, but why it matters and how it aligns with both business goals and employee aspirations.

 

Culture eats strategy for breakfast

Peter Drucker’s famous quote, “Culture eats strategy for breakfast,” remains as relevant as ever. A well-crafted strategy means little if the people tasked with executing are disengaged or feel undervalued. 

 

Being a CEO today is about much more than managing business fundamentals—it’s about building and sustaining an environment where people feel empowered to perform at their best.

 

The magic happens when strong consistent leadership, a shared mission, and a thriving culture align. That’s when organisations don’t just survive turbulent times—they evolve and emerge stronger, more innovative, and ready to lead the future of work. 

 

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Jason Byrne is CEO of Sullivan & Stanley

 

Main image courtesy of iStockPhoto.com and ilkercelik