Why Every Organization Needs a Culture Audit
In this episode of The Leadership Hustle, Andrea Fredrickson and Michelle Hill dive into the concept of a culture audit and why it is essential for organizations that want alignment, trust, and consistency. They challenge the common misconception that culture is defined by mission statements or values alone and instead focus on culture as the byproduct of leadership behavior.
Andrea and Michelle explain that leaders often struggle to accurately assess culture because of blind spots, bias, and good intentions. A culture audit helps uncover what employees are actually experiencing, including the unwritten rules, tolerated behaviors, and patterns that shape how people interact and perform.
The conversation walks through practical ways to conduct a culture audit, including interviews, anonymous surveys, direct observation, and listening with curiosity rather than defensiveness. Andrea and Michelle emphasize that leaders must pay attention to what is rewarded, tolerated, and ignored, especially when leadership is not watching.
The episode concludes with a call for intentionality. Leaders must decide whether their current culture is accidental or deliberate and then align behaviors, expectations, and beliefs to create the environment they truly want.
LISTEN TO THE EPISODE
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Why Every Organization Needs a Culture Audit
Most leaders believe they understand their company culture. The problem is that what leaders believe and what employees experience are often very different.
In this episode of The Leadership Hustle, Andrea Fredrickson and Michelle Hill unpack why culture is not defined by values statements or mission posters, but by everyday leadership behavior. They introduce the concept of a culture audit and explain how leaders can uncover what is really happening inside their organization, not just what they hope is happening.
By the end of this episode, leaders will rethink how culture is formed, learn how to identify blind spots, and understand how to move from accidental culture to intentional culture.
The Spark Behind the Conversation
Andrea and Michelle open this conversation based on a pattern they see repeatedly in growing organizations. Leaders talk confidently about their culture, yet employee behavior, engagement, and trust tell a different story.
As Andrea explains early in the episode, culture is not theoretical. It shows up in how people treat one another, how decisions are made, and what behaviors are tolerated or ignored. This disconnect is what led to the need for a deeper conversation about culture audits and why leaders must stop assuming and start observing.
Defining the Core Issue
At its core, a culture audit is about understanding what employees actually experience on a daily basis.
Michelle Hill describes it clearly when she explains that a culture audit evaluates how people are behaving, how those behaviors are interpreted, and the impact they have on others. Culture is shaped by seen and unseen behaviors, not intentions.
Andrea reinforces this by clarifying that culture is not the same thing as values. Many organizations confuse aspirational values with real behavior. Values describe how leaders want people to act. Culture reflects how people actually act.
This distinction matters because employees trust experience over messaging. When culture promises do not match reality, trust erodes.
Breaking It Down: Key Elements of a Culture Audit
1. Big C Culture vs Little C Culture
Andrea explains that many organizations have a Big C culture that lives in mission statements and branding, while individual teams develop their own Little C cultures based on leadership behavior.
Insight: Culture fragments when leaders behave differently across teams.
Takeaway: Leaders must assess whether behaviors are aligned across departments or quietly drifting apart.
2. Unwritten Rules Matter More Than Written Ones
Michelle highlights the importance of identifying unwritten rules. These rules reveal what actually gets rewarded or tolerated, even when it contradicts stated values.
Insight: Unwritten rules often explain promotions, power, and influence.
Takeaway: Ask employees what behaviors really lead to success in your organization.
3. Observation Without Defensiveness
Andrea stresses that leaders must observe behavior in meetings, emails, and daily interactions, especially when leadership is not watching.
Insight: Culture shows up in eye rolls, interruptions, lateness, and silence.
Takeaway: Observe patterns before reacting. Inventory behavior instead of excusing it.
4. Curiosity Over Assumption
Michelle emphasizes responding with curiosity when employees say things feel different or worse than before.
Insight: Dismissing concerns as resistance to change blocks understanding.
Takeaway: Ask follow up questions instead of rationalizing or justifying.
The Impact
When culture goes unaudited, leaders unknowingly reinforce behaviors that damage trust, engagement, and accountability. Employees disengage, inconsistency spreads, and culture becomes fragmented and confusing.
When leaders apply a culture audit, clarity emerges. Misalignment becomes visible. Leaders gain the ability to intentionally decide what behaviors to reinforce, adjust, or stop tolerating. The result is a more aligned, credible, and trusted organization.
Action Steps: Moving from Awareness to Accountability
Observe Before You React
Pay attention to behaviors in meetings, communication, and decision making. Track patterns instead of isolated incidents.Ask Better Questions
Use interviews or surveys to ask employees what it feels like to work there and what the unwritten rules are.Decide What to Endorse or Change
Determine whether current behaviors are intentional or accidental, then clearly communicate expectations moving forward.
Listen and Learn More
🎙️ Listen to this episode of The Leadership Hustle
https://www.revelagroup.com/podcast
Explore more leadership insights:
It’s Not an Attitude Problem
https://www.revelagroup.com/blog/its-not-an-attitude-problemYou Are the Standard
https://www.revelagroup.com/blog/you-are-the-standard
About the Hosts
Andrea Fredrickson
Andrea Fredrickson is a thought leader and consultant at Revela, an organization based in Omaha, Nebraska specializing in the development of leaders, culture alignment, and business strategy for private and family businesses of all sizes. Revela is one of the region's most experienced thought challengers, helping individuals and companies find their greatness. Andrea has built an amazing team by believing that fundamentally people want to be successful and become better versions of themselves.
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Andrea has degrees in education, management, and business. She is the author of Insight Unseen; How to lead with 20/20 business vision. She helps people see things differently, self-reflect, and never stop looking for ways to improve themselves on a personal and professional level. Andrea has spent more than 30 years researching and developing methods to help people communicate and lead more effectively.
When Andrea isn’t working with clients, you’ll find her spending time with her family & friends and making memories by exploring new cities.
Michelle Hill
Michelle Hill is a master facilitator and coach at Revela, an organization specializing in the development of leaders and aligning the culture of privately held and family businesses of all sizes. Revela is one of the region's most experienced thought challengers, helping individuals and companies find their greatness.
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An ambitious leader, Michelle has the natural ability to create forward momentum to build teams and get results. She inspires others to look within themselves and to challenge the status quo. She helps create high-performing environments. Michelle brings a diverse background: operations, employee development, and sales in the steel, hospitality, and consulting industries.
Outside of work, you will see her competitive side engaged in her daughter’s sports and ISU athletics. She loves life, her four-legged companions, and captures all the moments through her camera’s lens.
TRANSCRIPT
Andrea Fredrickson: In this episode of The Leadership Hustle, we’re going to talk about the importance of a culture audit.Hello, and welcome to The Leadership Hustle for executives whose companies are growing fast and need leaders who are ready. And welcome back to another episode of The Leadership Hustle. I’m Andrea Frederickson, and I’m joined by my co-host, Michelle Hill.
Michelle Hill: Hello.
Andrea: And we’ve got a new look today.
Michelle: Yes.
Andrea: We’ve been playing around with the idea of changing things up a bit, getting rid of the logo and the screen, and just trying something a little different. Same set, just a new feel.
Michelle: Yeah, a little refresh.
Andrea: So as we get ready to talk about our topic today, we’ve been working pretty heavily in the area of culture. And really, everything leaders do affects culture, right?
Michelle: Yes.
Andrea: What they do, what they don’t do, the impact of their actions, all of it. So as we talk about culture today, I want everyone to remember that this comes from a core belief we hold: culture is a byproduct of what leaders do. Period. With that in mind, we’re going to introduce the idea of a culture audit. So Michelle, in your words, what does a culture audit mean to you? What is it, and why is it important? Let’s start there and get everyone on the same page.