14 December 2025

High‑performing teams don’t happen by accident; they result from deliberate habits and cultural design. Culture Amp’s 2025 research identifies five behaviors that differentiate top managers: leading by example, sharing feedback regularly, building psychological safety, setting aligned goals and communicating transparently (cultureamp.com). Harvard’s Division of Continuing Education notes that healthy company culture drives profitability, innovation and flexibility, while toxic cultures, characterized by lack of transparency and disrespect, drive turnover. This article offers a roadmap for founders to cultivate excellence within their teams.

The Importance of Business Culture

Company culture is the shared set of values, goals, attitudes and practices that define how work gets done. Harvard DCE’s Michael McCarthy describes it simply as “how things are done around here”. A healthy culture binds teams together, fostering engagement, trust and innovation. The benefits are tangible: improved profitability, competitive advantage and adaptability. Conversely, toxic culture spreads like a virus. Lack of transparency, unfair treatment and unrealistic expectations breed disengagement and drive attrition.

Five habits of high‑performing leaders

Culture Amp analyzed thousands of survey responses to uncover habits of leaders whose teams consistently outperform. They identified five behaviors that distinguish top managers:

1. Lead by example. Great leaders go first, modelling accountability and commitment to excellence. However, this influence cuts both ways. If managers email at midnight or work weekends, they normalize overwork and prompt teams to mirror unhealthy habits. Leaders must set boundaries and demonstrate sustainable work patterns.
2. Share feedback regularly. Continuous feedback helps employees understand how they are performing and where to grow. Employees under high‑performing leaders are five percentage points more favorable about their development and twelve percentage points more satisfied with feedback. High‑performing employees also give 36% more feedback to their peers, creating a virtuous cycle. Specific, actionable and frequent feedback fuels improvement.
3. Build psychological safety. Trust is the foundation of performance. When employees feel safe to speak up without fear of retribution, they collaborate more effectively and innovate. Culture Amp data shows that employees under high‑performing leaders are five percentage points more comfortable voicing contrary opinions. Managers can foster safety by welcoming dissent, sharing their own learning moments and carving out time to get to know team members.
4. Set aligned goals. Clear, meaningful goals fuel motivation. High‑performing employees are more likely to align their goals with company objectives. Using OKRs, as discussed earlier, helps teams understand how individual work contributes to broader priorities. Leaders should collaborate with employees to set goals and adjust them as circumstances change.
5. Communicate transparently. Transparency reduces uncertainty and builds trust. Culture Amp finds that high‑performing leaders keep teams seven percentage points more informed about what’s happening in the company. Communicating context behind decisions, plans and challenges helps employees feel connected and valued. This is especially important during change or crisis.

Building and repairing culture

Culture is dynamic. Founders inheriting a toxic culture must take deliberate steps to turn it around. Harvard DCE identifies several causes of toxicity: leadership changes, layoffs, unreasonable workloads and lack of transparency. To repair culture:

• Acknowledge problems: Leaders should be transparent about challenges and own past mistakes. Honesty builds credibility.
• Define values: Engage employees in articulating core values and behaviors that reflect the desired culture.
• Model behaviors: Leaders must embody the values they espouse. This includes setting boundaries, giving credit and demonstrating empathy.
• Reward desired behaviors: Recognize and reward actions that align with the culture. This reinforces what good looks like.
• Remove toxicity: Address toxic behaviors swiftly, even when exhibited by high performers. Allowing toxicity erodes trust and undercuts cultural change.

Measuring culture

Founders should regularly measure culture through surveys, one‑on‑one conversations and data such as retention, engagement and performance. Pulse surveys can capture sentiment and highlight areas needing attention. Leaders should also look for early warning signs of toxic culture, such as increasing gossip, declining collaboration or sudden spikes in turnover.

Balancing performance and wellbeing

High performance does not equate to burnout. Leading by example means demonstrating that rest and recovery are part of excellence. Encourage employees to take time off, set boundaries for communication and model healthy behaviors. Sustainable success comes from teams who are motivated, supported and aligned.

Creating a culture of excellence requires intentional leadership. Research shows that healthy cultures drive profitability and innovation, while toxic cultures undermine performance and increase turnover. Leaders can cultivate excellence by modelling healthy behaviors, providing continuous feedback, building psychological safety, aligning goals and communicating transparently. Culture is a strategic asset that, when nurtured, propels companies toward long‑term success.

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