Let’s be blunt.
Most companies don’t have a values problem.
They have a behaviour problem.
Values are written. Behaviours are lived. And the gap between the two is where growth dies.
Culture: The Hidden Constraint on Growth
Too many leadership teams still treat culture as “soft”. It’s not.
Culture is the operating system of your business—it determines:
- How fast decisions get made
- How much friction exists between teams
- Whether people take ownership or escalate everything upward
- The quality of talent you attract and retain
And most importantly…
- Whether your strategy ever gets executed Culture is what allows a company to scale without the CEO becoming the bottleneck.
The Real Problem: “Stated Values” vs “Lived Behaviours”
Here’s what I consistently see in mid-market companies:
- Leadership believes the culture is strong
- The frontline experience says otherwise
That gap is not theoretical—it shows up in:
- Poor execution
- Slow decision-making
- Inconsistent customer experience
- Talent churn
And ultimately… stalled growth.
The uncomfortable truth: You don’t have the culture you aspire to—you have the culture you tolerate.
Values Are Useless… Unless They Drive Behaviour
Values only matter when they shape:
- Hiring decisions
- Performance management
- Customer choices
- Strategic trade-offs
When done properly, values become a distributed decision-making system: “Does this align with who we are?”
When everyone can answer that without escalating—you scale.When they can’t—everything slows down.
From Values to Behaviours: The Shift That Changes Everything
One of the most powerful insights from the PwC research is this:
- You don’t transform culture by talking about values—you do it by defining behaviours.
Because:
- You can’t measure “integrity”
- But you can measure “we address issues within 24 hours”
- You can’t measure “accountability”
- But you can measure “we own problems and bring solutions”
This is the shift leaders must make:
Weak Value Strong Behaviour
“We value teamwork” “We resolve conflict directly within 48 hours”
“We are customer focused” “We respond to customers within 2 hours”
“We value accountability” “We bring solutions, not just problems”
Behaviour = observable, measurable, repeatable
Culture Drives Growth—Whether You Like It or Not
The data is clear:
- Companies with strong, distinctive cultures are 2x more likely to achieve strong growth
- And almost 2x more profitable
But here’s the nuance most miss: Culture can help AND hinder.
Example:“We care about each other” → builds trust
But also → avoids tough conversations
Result?
Nice culture. Poor performance.
Leaders Create Culture (Whether They Mean To or Not)
Culture is not what you say. It’s what you consistently do.
Leaders create culture through repeated behaviours
And as Dick Dusseldorp (founder of Lendlease) put it: “A winning culture is one where people are accountable, know the rules, and are given the freedom to perform.”
The 4 Levers to Embed Core Behaviours
If you want culture to stick, it must be embedded into how the business runs:
1. Decisions
- Who decides?
- How fast?
- Based on what principles?
2. Motivation
- What gets rewarded?
- What gets tolerated?
3. Information Flow
- What gets measured?
- What gets discussed daily/weekly?
4. Structure
- Roles, accountability, decision rights
- If behaviours aren’t embedded here—they won’t last.
A Simple Culture Audit (No Survey Required)
Forget long diagnostics. Look at this:
1. Decisions
- What happens when you’re not in the room?
2. Performance
- Do poor performers get managed—or tolerated?
3. Stories
- What do people say about the company at home?
That’s your culture. Not your values poster.
The Hard Truth for Leadership Teams
From years of conducting baseline/discovery surveys across organisations:
- Leadership teams consistently overestimate how well values are lived
- Frontline teams consistently experience the gaps
- And those gaps are where execution breaks.
Final Thought
Culture is not built in workshops. It’s built in a thousand daily actions.
- Every hire
- Every meeting
- Every tough conversation avoided (or not)
- Every standard upheld (or compromised)
- Get behaviours right… and everything else gets easier.
- Get them wrong… and nothing scales.
Call to Action
If you want to pressure-test whether your culture is helping or hindering growth:
- Ask your SLT to define your core values and behaviours
- Ask your frontline the same question
- Compare the answers
- The gap is your next growth opportunity
TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS
Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.
My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.
Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.
ABOUT STRATEGY & EXECUTION
For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.
Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.
If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops
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