May 18, 2026
Justin Peckett

When Culture is Compromised, Performance Follows

I see this pattern often in my role as a facilitator at Leading Teams.

When performance drops, the instinct from some leaders / business owners is to look at strategy, structure, or blame external factors. But more often than not, the root cause sits elsewhere.

We use the Leading Teams Cylinder Model to help leaders and their teams better understand the link between culture and leadership and everything that’s happening in the team / organisation – the good, the bad & the ugly.

In our experience, systems don’t fail at the top of the Cylinder Model – failure begins at the foundation.

At the base is CULTURE – the behaviours that are accepted, the standards that are reinforced, and the conversations people are willing (or unwilling) to have.

When culture is clear, consistent and actively upheld, it creates alignment. People understand what’s expected, are rewarded for buying in and just as importantly, are clear about the behaviours that are not part of the culture

But when cultural standards become unclear or inconsistent – when behaviours go unchallenged, there’s a lack of accountability or when people are unwilling and or unable to meet expectations – the risk is culture becomes compromised, threatened – as people are emboldened to pick & choose therefore culture becomes negotiable and harder to claw back.

And when that happens, the spotlight shifts to the next layer: LEADERSHIP.

Leaders and key centres of influence. What they say and do sets the tone for the system. When leaders are aligned, consistent, and prepared to role model and reinforce standards – especially when it’s uncomfortable – it builds trust and clarity, people will follow.

When they’re not, the impact is felt quickly, and you might see inconsistent decision-making, avoidance of difficult conversations and/or a gap between stated values, what we espouse and day-to-day behaviours, again people will follow.

From there, the system follows a familiar pattern as culture and leadership impacts;

RECRUITMENT becomes less about clear standards, the right fit, adding real value and more about short-term needs or fit in the moment.

INDUCTION reinforces “how things really work,” which may not align with what’s been communicated or was expected by new team members as they get their cues from leaders as to ‘how do I really need to behave to fit in?’, what really gets rewarded? what can I get away with?

PERFORMANCE  becomes harder to sustain – not always immediately, but gradually, and then all at once. How an individual, team, department, organisation, industry, country performs is an outcome of culture, quality of leadership, the types of people recruited and how they are inducted both formally and informally.

EXIT is a reflection of culture – what shape are people in when they leave the team? Are they better off for being part of the system? Is the team better off for having them in the team? What’s the leader’s legacy? What are they leaving behind?

We all experience the journey through the Cylinder Model whether inside the teams, organisations, industries we work in, or the State or Country we live in.

The challenge for leaders and team members isn’t recognising the pattern – it’s having the discipline and the courage to address it early.

Because improving performance rarely starts with more strategy or tighter controls. It starts with resetting the foundations:

  • Being clear on the behaviours and standards expected
  • Holding each other to those standards consistently
  • Ensuring leadership is aligned in both message and action

When culture and leadership is strong and aligned, performance tends to follow – the people and teams’ benefit, great outcomes can be achieved.

When they’re not, the system will reflect that and is of risk of breaking down, making things worse for people and the environment we work & live in.

Strong systems don’t happen by chance. They’re built and protected through the behaviours leaders choose to accept and the standards they’re prepared to uphold.

Whether it’s your favourite sporting team, where you’re currently working, where you might like to work, the school you attend, your local sporting club or community, at home or as a Country, culture and leadership is a critical factor in performance – is it helping or hindering? What are you doing about it?

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