We see this pattern all the time: a large organisation embarks on a major transformation, and the first instinct is to redesign the structure. Boxes and lines shift, new competencies are defined, and frameworks are rolled out. On paper, it looks solid. But on the ground, frustration builds, trust erodes, and the transformation loses steam.
The truth is simple but often overlooked: competency follows culture. Without the right leadership behaviours and cultural environment, competencies don’t take root. Leaders who underestimate this reality risk building models that look right on paper but never take hold in practice.
The Misplaced Focus on Structure
When a CEO or executive team hits “go” on a transformation, structure feels like the most tangible lever. It’s visible, easy to communicate, and quick to draw. The assumption is: if we design the right operating model, the rest will fall into place. But structure alone doesn’t change how people show up to work. It rarely addresses whether people feel safe to challenge decisions, whether they take ownership, or whether unhelpful norms get flushed out.
We’ve seen this play out. At Origin Energy, a new operating model unlocked speed and alignment, but it was leadership’s decision to lean into cultural shifts that made it real. Executives deliberately modelled cross-team collaboration and ownership. That behaviour set the tone, ensuring the redesign translated into faster delivery, stronger engagement, and renewed trust.
Origin’s story reflects a wider pattern we see across clients: structure is necessary, but never sufficient. Radically’s operating model framework highlights five interconnected elements: governance, ways of working, future capabilities, leadership and culture, and structure itself. Focusing on structure without addressing leadership and culture is like rehearsing the script but never coaching the cast.
Leaders as Cultural Architects
Here’s the crux: transformation lives or dies by how leaders behave. They are the cultural architects. Every meeting, every decision, every reaction to failure either reinforces or undermines the desired culture.
Competency is downstream of culture. When leaders role model openness, curiosity, and accountability, those behaviours cascade into teams. When they default to control, defensiveness, or ambiguity, no amount of training will embed the competencies written in the playbook.
During the Mercury–Trustpower integration, success hinged less on the mechanics of merging two businesses and more on leaders embodying the new culture. A large-scale leadership uplift program gave executives the skills and presence to be visible role models. Their consistency reduced ambiguity and built trust at a time when uncertainty could easily have fractured the organisation.
In our experience, the leaders who make the biggest difference are not just decision-makers, but also translators. They help their teams make sense of what’s happening, reduce ambiguity, and connect the change to something meaningful. That clarity and consistency are what build the foundation for growth capability.
As one client put it: “You can’t automate clarity. You have to earn it: in how you lead, how you engage, and how you listen.”
Transformation as an Invitation, Not a Destination
Another common trap is treating transformation as if it has a finish line. “Once the new structure is live, we’re done.” But transformation isn’t a program to deliver. It’s an invitation to lead differently, to embed new habits and mindsets that endure. And just like fitness or any other personal change, this takes sustained effort. That’s where Radically Sustain comes in: a service designed to help leaders and teams build the discipline, rhythm, and reinforcement needed to keep new behaviours alive long after the program ends.
That shift in perspective is critical. Real change sticks when it feels like growth, not an exam. People adopt new ways of working when leaders consistently embody them, not when they’re broadcast from a stage.
We often say: resonance beats rollout. You can roll out processes at speed, but unless people see, feel, and believe the change, adoption won’t last. Leaders create resonance through stories, presence, and consistency; not just metrics.
What Leaders Should Take Away
- Stop over-engineering competencies. Skills won’t stick if the cultural soil is barren.
- Invest in leadership behaviours. Presence, role modelling, and psychological safety matter more than polished frameworks.
- Treat transformation as ongoing. It’s not a project to finish but a muscle to keep strengthening.
- Anchor culture in your operating model. Don’t treat it as the soft stuff to get to later. It’s the hardest, most valuable lever you have.
Final Word
If you’re pouring energy into structure and competency frameworks while underplaying culture and leadership, you’re building on sand.
The transformations that last are those where leaders consistently demonstrate clarity, conviction, and connection.
Because in the end, transformation isn’t about structure. It’s about people seeing leaders walk the talk - and choosing to follow.
If your transformation feels heavy on structure but light on culture, it may be time to rebalance. Let’s talk about how to anchor leadership and culture at the centre of your operating model.
Please feel free to connect with me via my email kevin@radically.co.nz or connect with me via LinkedIn.
