What Leaders Get Wrong About Company Culture (and How to Fix It)

Leaders play a critical role in shaping company culture, but even with the best intentions, it’s easy to make mistakes that unintentionally create unhealthy environments. Culture isn’t just about policies or mission statements—it’s about the day-to-day experiences of your team. When leaders misstep, it can lead to disengagement, turnover, and a decline in performance. Here are three common mistakes leaders make when it comes to culture and how to address them.

One of the most common issues is micromanagement. While leaders often think being hands-on shows they’re invested in their team’s success, it can have the opposite effect. Micromanagement signals a lack of trust, stifles creativity, and causes employees to feel disengaged or undervalued. To fix this, focus on setting clear expectations, providing resources, and then stepping back to let your team take ownership. Regularly check in to offer support, not control. Trust is a two-way street, and giving your team space to deliver builds confidence and fosters a stronger culture.

Another major misstep is ignoring feedback. Employees are on the front lines, and their insights are invaluable. When leaders dismiss or fail to act on feedback, it sends the message that their input doesn’t matter. This can erode trust and morale over time. To fix this, create regular opportunities for employees to share feedback, whether through surveys, one-on-one meetings, or team discussions. Most importantly, take action on what you hear. Even small changes based on employee input can demonstrate that you’re listening and value their perspective.

Leaders often underestimate the importance of modeling behavior. Employees look to leadership to set the tone, and inconsistencies between what leaders say and do can create a culture of confusion or mistrust. For example, if a company promotes work-life balance but leadership consistently works late nights and weekends, employees may feel pressured to do the same. To fix this, align your actions with your organization’s values. If collaboration is a core value, prioritize team discussions and celebrate shared wins. Leading by example is one of the most powerful ways to reinforce the culture you want to create.

When leaders recognize and address these common mistakes, they can create a culture where employees feel trusted, valued, and aligned with the company’s mission. Culture isn’t static—it’s shaped every day by the actions of leaders and their teams. By focusing on trust, listening to feedback, and modeling the right behaviors, you can build a culture that supports both your team and your organization’s long-term success.