Trust as the Foundation of Organizational Culture

 “Trust is the foundation of any thriving culture. It’s what allows people to collaborate, innovate, and bring their best selves to work every day.” Satya Nadella (CEO, Microsoft).

The conception of culture is nebulous and difficult to define clearly. Successful and unsuccessful cultures are also difficult to measure. However, interestingly, they are easy to recognize, since when you are in an institution or unit with a bad culture, you know it. When you are in an institution or unit with a good culture, you can feel it. Surveys may give you some estimation of the nature of the culture of an institution, however, it leaves a lot to be desired in terms of trying to gauge the qualitative excellence of a culture. What is clear however, is that culture is foundational for the success of an institution. This is true for institutions in all industries, for-profit and non-profit alike.

One of the most memorable descriptions of organizational culture I have encountered is “Culture is the water we swim in.” The simplicity of this image is powerful. Just as fish depend on the quality of the water around them, institutions thrive—or fail—based on the quality of their culture. If the culture is toxic, even the most carefully crafted strategies and the hardest work to implement those strategies will be undermined. Culture permeates everything. It touches every aspect of an institution’s life and, if left unaddressed or left to decay, it can erode progress at every level.

A toxic culture can weaken virtually every dimension of an organization. In higher education, it affects enrollment, student services, employee satisfaction, employee attitudes, team collaboration, faculty recruitment and retention, leadership effectiveness, and innovation. It impedes strategy execution and diminishes synergy. Ultimately, a toxic culture creates ceilings for growth and blocks institutions from achieving their full potential.

In contrast, a strong, healthy culture amplifies the effectiveness of everything we do. It empowers institutions to fulfill—and even exceed—their missions. In such environments, strategy is enhanced, not obstructed; innovation is fostered, not feared; and people are energized, not drained. A healthy culture strengthens collaboration, boosts morale, enhances communication, and builds momentum across every functional area of the institution. Equally important, it transforms work into a place of purpose, joy, and fulfillment.

I argue that the foundation of a healthy culture is grounded in trust—specifically, trust in its leaders. Before stakeholders can trust a vision, strategies, decisions, and systems, they must trust the integrity and character of those leading the organization. There’s a meaningful distinction between trusting someone as a leader and trusting them as a person. Trust in leadership is important, but trust in the leaders’ character, as a person, is foundational. The former may inspire confidence in vision and direction, i.e., where they are taking the institution; the latter creates the emotional and ethical bonds needed to sustain long-term cultural health.