What is Workplace Culture and Why Does it Matter?

Written by: Ken Lulow

In today’s rapidly evolving work environment, culture isn't a buzzword, it's the soul of an organization. Whether you’re leading a field crew, managing operations, or sitting at the executive table, workplace culture affects every layer of performance, safety, trust, and long-term success.

So what is workplace culture, and why does it matter so much? More importantly, how can the right culture mean the difference between a company that's simply surviving versus one that's thriving?

Workplace Culture

Workplace culture is the collective behavior, beliefs, values, and attitudes that shape how work gets done in an organization. It's not about logos or perks, it's about how people treat each other, how leaders show up, how problems are solved, and how decisions are made.

Culture is formed intentionally or by default. If it's not deliberately cultivated, it will develop on its own, often driven by personalities, unspoken norms, or outdated habits. That can create silos, fear, mistrust, or complacency. On the other hand, when organizations design culture with intention, it becomes a powerful force for alignment, innovation, and excellence.

You can feel culture in how a safety meeting is run. You can see it in how new employees are onboarded. You can hear it in the way leadership responds to feedback or how mistakes are handled. Culture is what happens when no one is watching.

Why Workplace Culture Matters

• It Drives Retention and Engagement
  Employees stay where they feel respected, valued, and connected to something greater than a paycheck. In today’s labor market, top talent isn’t just looking for compensation, they’re looking for meaning, purpose, and a sense of belonging, this holds especially true for our millennial generation of today.

• It Shapes Safety and Accountability
  Especially in high-risk industries like utilities and construction, a culture that values speaking up, peer-accountability, and psychological safety can prevent injuries and save lives. When workers know they won’t be punished for pointing out a risk, they are more likely to act before incidents happen or speak up when a mistake was made.

• It Influences Reputation and Trust
  Culture doesn’t stay inside your building. It flows out into how customers view your brand, how regulators evaluate your integrity, and how communities perceive your commitment to public service. A strong internal culture reinforces external credibility.

• It Determines Your Future
  Even the best strategies, technologies, or systems will fail under a toxic culture. A strong culture turns adversity into innovation and challenge into opportunity. It enables transformation, resilience, and sustainable success.

• It Creates Connection and Purpose
  In fast-paced or high-stress environments, culture becomes the glue that holds teams together. It helps individuals see how their roles contribute to the bigger picture. That connection fuels motivation, ownership, and pride in the work.

The Growing Need for Culture-Focused Leadership

Many organizations are beginning to realize that culture isn’t a "trendy" topic, it's a strategic priority. Yet, too many still treat it as something that sits with HR or as a side initiative. The reality is:

• Organizations struggle with employee burnout and disengagement due to unclear expectations and poor leadership behaviors.

• They experience high turnover and low morale because their internal values don’t match their day-to-day operations.

• Many suffer from communication breakdowns, siloed teams, and mistrust between leadership and frontline workers.

• They face increased safety incidents, legal risks, and ethical failures due to a lack of cultural alignment around responsibility and integrity.

Without a solid cultural foundation, even the most advanced operations can crumble under pressure. Culture isn’t what you write on a wall or a website. It’s what your people experience every single day.

Case Studies: The Cost of Neglect vs. The Power of Culture

PG&E – When Culture Becomes a Liability

Pacific Gas & Electric’s failure to maintain a safety-first culture led to one of the deadliest wildfires in U.S. history. Despite internal warnings, decisions prioritized cost-saving over equipment upgrades and vegetation management. The 2018 Camp Fire killed 85 people and destroyed entire communities. The result? Bankruptcy, billions in fines, and the loss of public trust. Culture wasn't a side issue; it was the root cause.

Bonneville Power Administration (BPA) – Culture as a Competitive Advantage

By contrast, BPA transformed its safety and operations through cultural investment. They shifted to a "just culture," encouraging open communication, near-miss reporting, and field-level empowerment. The result? Reduced incidents, higher morale, and trust between leadership and crews. BPA became a model for safety culture across the public power sector.

Creating a Thriving Workplace Culture: A Leadership Action Guide

If you’re in a leadership position, you play a critical role in shaping culture. Here's how to start building a culture where people and performance thrive:

1. Lead by Example

• Model the behaviors and values you want to see.

• Own mistakes publicly and show accountability.

• Show up consistently in the field and with your people.

2. Create Psychological Safety

• Make it safe for employees to speak up without fear of retaliation.

• Create an environment where employees can learn from mistakes.

• Reward honesty, even when the truth is difficult.

3. Align Actions with Values

• Don’t just talk about safety, respect, or inclusion, demonstrate it daily.

• Ensure policies, practices, and rewards reinforce your values.

• Don’t message safety first only to follow up with hurry up and get it done.

4. Listen and Respond

• Be present in the field and engage with employees at all levels.

• Use feedback to improve, not to defend the status quo.

• Listen to understand. Acknowledge feedback from front-line employees, to build trust.

5. Recognize and Celebrate the Right Things

• Highlight examples of teamwork, innovation, and doing the right thing.

• Make appreciation part of the daily rhythm, not just annual reviews.

• Provide positive feedback publicly and negative feedback privately.

6. Hire and Promote with Culture in Mind

• Look for cultural fit and values alignment, not just technical skill.

• Promote those who model cultural values and effective leadership.

• Break from the organizational practice of glorifying high performers with bad culture.

7. Invest in Development

• Provide leadership training and mentorship at all levels.

• Teach soft skills alongside technical competencies.

• Build responsibility and accountability into the culture so employees grow with the company.

Final Thoughts

Culture isn’t something you build and forget. It’s something you nurture, protect, and evolve. In the utility industry, where lives are on the line and trust is hard-earned, culture is the invisible foundation behind every success or failure.

As more organizations grapple with work force shortages, regulatory pressure, and the demands of a modern workforce, those who invest in culture will have the edge. Not just in safety. Not just in performance. But in loyalty, innovation, and legacy.

Don’t wait for a crisis to examine your culture. Lead with purpose, act with integrity, and build a workplace where people are proud to show up, and proud to stay.

Because in the end, culture isn’t just the difference between surviving and thriving. It’s the difference between failing quietly and succeeding boldly.