5 Key Indicators That Your Organization Needs a Cultural Assessment

Leadership isn’t just about hitting numbers, growing the team, or driving innovation—it’s about creating an environment where people feel valued, supported, and aligned with the organization’s mission. When things are going well, you can sense it in the energy of your team, the collaboration in meetings, and the way everyone rallies together toward a common goal. But culture isn’t something you can just set and forget. It evolves with your people, your goals, and the challenges you face as an organization.

And that’s where things can get tricky.

Even the most well-intentioned leaders often overlook subtle shifts in their culture. Team morale starts slipping, communication breaks down, and before you know it, you’re caught in a cycle of burnout, turnover, and missed opportunities. That’s why it’s crucial to keep a pulse on your culture and address any cracks before they turn into major problems.

How to Know If Your Organization Needs a Cultural Assessment

Based on my experience with leaders across industries, I’ve identified five key indicators that signal it’s time for a cultural check-up. When these issues go unchecked, they lead to low morale, high turnover, and stagnant growth—none of which spell success for high-performing teams. So, let’s dive in:

1. Employee Turnover is Higher Than Expected

If you’re seeing more and more employees leave, it’s easy to chalk it up to the “Great Resignation” or market trends. But let’s be real—high turnover often points to deeper cultural issues. In healthcare, losing frontline workers, like nurses or administrative staff, disrupts patient care, increases burnout for the remaining staff, and drives up recruitment costs. When experienced leaders leave, you lose valuable institutional knowledge and the stability that keeps your organization grounded.

The costs of turnover go beyond recruitment expenses; it impacts morale, continuity, and even the quality of care delivered. Studies show that the average cost of replacing a frontline healthcare worker is around 20% of their annual salary, and for a high-level executive, that number can soar to 150% or more. That’s a huge price to pay for an issue that often stems from a preventable cultural problem.

So, what’s driving employees away? Here’s the kicker: When I go in fresh to help organizations in need, employees—whether they stay or go—are surprisingly open about how they feel. They’ll tell you exactly why they don’t want to work there and what could change the organization for the better. And while the market is competitive, the number one reason I’ve found for their departures has little to do with pay. It’s about misalignment with the organization’s culture—not the mission and vision statements you tout on the walls, but what’s actually happening day-to-day. It’s the real energy, the genuine support (or lack thereof) they feel away from all the pep rallies and “awards and accolades” the organization receives.

Pro Tip: Conduct anonymous exit interviews and listen closely to the feedback. Employees won’t sugarcoat their experiences, and patterns in their concerns are often indicators of hidden cultural cracks that need fixing.

2. Communication Feels Like a Game of Telephone

Ever had one of those days where miscommunication feels like the norm? Imagine this: two different departments unknowingly working on the same problem, each with their own plan and strategy. Team A is staying late, putting in extra hours to hit a tight deadline. Team B, on the other hand, is creating an entirely different solution based on their understanding of the problem. No one’s sharing updates or coordinating efforts, and key players aren’t communicating.

The result? Double the work, double the confusion, and a frustrated team that feels like they’re spinning their wheels for no reason. I saw this exact scenario unfold in a healthcare organization. Two managers, both new to their leadership roles, were promoted based on their past individual achievements but had never been trained or supported to lead their new teams effectively. Their teams ended up working in silos, and when the project finally came together, half the work had to be redone, deadlines were missed, and team members were burned out from unnecessary overtime and stress.

And it’s not just working in silos that causes chaos. I’ve been in meetings that were so data-heavy and packed with problems, yet lacked context. Because I’m not afraid to speak up, I asked, “What the h-ll are we even talking about?” Not like that, of course, but you get the point. Others in the room finally agreed that they didn’t understand either. This happened about an hour into a workgroup session where we were supposed to be strategizing new ideas for an issue—imagine if I didn’t have the courage to ask.

In another meeting, I knew the skill level of the leaders wasn’t aligned with the information being discussed—not because they were incompetent, but because they hadn’t been given the proper training or tools. Afterward, I polled the group to see if they understood the meeting and the data within it. 80% of them didn’t, but NO ONE spoke up. This happens all the time… in every organization I’ve ever worked in and with. Now, imagine the ripple effect of confusion and disengagement that can have on your organization’s culture.

When people aren’t clear on expectations or decisions, it doesn’t just kill productivity—it creates an undercurrent of frustration, confusion, and blame. Over time, this kind of environment erodes trust and leaves people feeling like they’re constantly treading water, trying to stay afloat amidst the confusion.

Quick Fix: Start by streamlining your communication channels and creating a culture where it’s safe to ask questions or seek clarification. Leaders need to prioritize cross-functional meetings where key stakeholders stay aligned, and it’s crucial to provide new leaders with the support and training they need. But clarity also depends on transparency—leaders must be open about decisions, challenges, and changes impacting the team. By consistently sharing information and context, you empower your people to engage more deeply and contribute meaningfully.

3. Collaboration is More Competitive Than Cohesive

Here’s the thing—healthy competition can push people to excel, but when collaboration turns into finger-pointing or turf wars, you’ve got a deeper cultural issue on your hands. I’ve seen it happen: instead of working toward shared goals, team members start guarding their territories, withholding information, or even undermining each other to protect their own achievements.

In one organization I worked with, two departments were supposed to be working together to roll out a new initiative, but the collaboration quickly turned into a power struggle. Instead of leveraging each other’s expertise, they were more concerned with claiming credit or avoiding blame. Meetings turned into opportunities to one-up each other, and any progress was constantly bogged down by mistrust and competition. This kind of dynamic doesn’t just slow things down—it poisons the well.

What was missing? A clear understanding that they were all working toward a common goal. Without a sense of shared purpose, individual achievements became the priority, and collaboration took a back seat. The real problem wasn’t the people—it was the system of rewards and recognition that emphasized individual success over collective outcomes.

Action Step: Revisit your team’s values and shift the focus from individual wins to genuine collaboration. It’s not about eliminating healthy competition but about creating an environment where success is measured by what you accomplish together. Tie bonuses or recognition programs to meaningful team achievements, where team members actually work together to drive real outcomes. And don’t stop there—celebrate those who lift others up, share credit freely, and make space for collaboration to thrive.

4. Innovation is Slowing Down

One of the surest signs of a cultural problem? A lack of new ideas. If your team isn’t innovating or if new initiatives always seem to get stuck in “approval purgatory,” it’s time to assess what’s causing the block. Is it fear of failure, rigid decision-making, or a lack of empowerment?

But let’s get real—people aren’t always as creative as they think. Studies show that only 30% of leaders consider themselves strong in creativity and innovation, and an even smaller percentage have been trained on how to cultivate innovative thinking. Many leaders haven’t been educated on how to approach problems in new ways, leaving them to rely on old, familiar patterns. This isn’t just an individual issue; it’s a systemic one that limits the entire organization.

To make things even more challenging, there’s often a reluctance to bring in external perspectives. Leaders can become so attached to their own processes that they overlook the value of fresh eyes. Without an outside perspective, organizations end up drowning in their own blind spots, missing out on opportunities for growth.

Next Move: Foster an environment where experimentation is celebrated, not punished. Encourage risk-taking and learn from mistakes—without fear of retribution. To drive real innovation, bring in external support to challenge your team’s thinking and spark new ideas. Sometimes, it takes an outside perspective to uncover the possibilities you’ve been missing all along.

5. There’s a Disconnect Between Leadership and the Front Line

This one’s a biggie. When leaders are out of touch with what’s really happening on the ground, it creates a divide that’s tough to bridge. I’ve seen this play out in organizations where leaders sit in strategy meetings, discussing “solutions,” while the people on the front lines are quietly shaking their heads because no one bothered to ask them what the real issues are. It’s like building a house on a shaky foundation—you can paint over the cracks, but the whole thing is going to crumble eventually.

When there’s a disconnect, employees start to feel unheard, undervalued, and unmotivated. Critical issues go unnoticed, and decisions made in the boardroom start to look completely out of touch with reality. Over time, this creates a culture where frontline workers disengage, and leadership is left wondering why their strategies keep falling flat.

How to Fix It: Make regular “culture check-ins” part of your leadership routine. These aren’t just surface-level meetings where you drop in, nod, and move on. Stay engaged by walking the floor, asking the right questions, and genuinely listening to your people. Ask them, “What’s really going on?” or “If you could change one thing, what would it be?” And here’s the key—don’t just listen for the sake of it. Act on what you hear. Frontline workers are your organization’s reality check, and if you’re not tapping into their insights, you’re running your business with blinders on.

So, What’s Next?

If these signs sound all too familiar and you’re serious about transforming your culture, it’s time to take action. Whether it’s a comprehensive cultural assessment to identify and fix root causes or a targeted 90-day plan to tackle turnover and leadership alignment (and yes, it’s a proven strategy that can more than pay for itself), let’s make it happen.

I have limited spots available for organizations ready to take a results-driven approach to their culture and leadership challenges. If you’re committed to moving your team from stuck to unstoppable, let’s connect and craft a strategy that aligns with your goals.

Let’s create a culture where team members not only stay but thrive.

P.S. If you found value in what you read, my free resource library is packed with practical guides to help you tackle these exact issues head-on. Check it out here:

  • Cognitive Leadership: Making Smarter Decisions in Healthcare

  • Mastering Meetings: A Guide for Those Who Can’t Stand Wasting Time

  • How to Make Smart Decisions with Limited Data: Proven Strategies for Leaders

  • High Performance Leadership Checklist and Audit

  • How to Run a 10-Minute Effective Huddle for Team Development

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