The Psychology of Workplace Culture: Why Leaders Must Understand UGRs to Drive Real Change

What really drives workplace culture isn’t written in policies or displayed on posters

Steve Simpson

1/15/20252 min read

Every workplace has a culture, but few leaders truly understand the psychology behind it. Culture isn’t about what’s written on posters or spoken in team meetings—it’s about the unspoken rules that guide people’s behaviour every day. These are the Unwritten Ground Rules (UGRs): the often-unspoken perceptions of “this is the way we do things around here.”

Understanding the psychology of UGRs is essential for leaders who want to shape cultures that are productive, innovative, and resilient. Without this understanding, culture initiatives often feel like rearranging deckchairs on the Titanic—plenty of effort, but no real change.

The Hidden Layer of Workplace Culture

Every organisation has formal structures: policies, procedures, mission statements, and values. But beneath the surface lies the psychological layer of culture—the UGRs. These are the rules people follow not because they’re written down, but because they’ve learned them through observation and experience.

“Around here, people only speak up in meetings if the boss agrees with them.”
“Around here, we celebrate innovation, but only if it doesn’t disrupt the status quo.”
“Around here, deadlines are more of a suggestion than a requirement.”

These UGRs shape behaviour far more powerfully than formal policies ever could.

Why Leaders Often Get It Wrong

Many leaders focus on what they see—employee surveys, KPI dashboards, and performance reviews. But UGRs exist in what leaders don’t see: whispered conversations, sidelong glances in meetings, and the choices employees make when no one is watching.

This psychological undercurrent often explains why cultural transformation efforts fail. Leaders introduce new values, team-building activities, or communication protocols without addressing the deeper UGRs that quietly counteract these initiatives.

The Psychology Behind UGRs

At their core, UGRs are rooted in human psychology:

Social Proof: People look to others for cues on how to behave, especially in uncertain situations.
Avoidance of Risk: Speaking out or challenging norms often feels risky, so people conform to what feels ‘safe’.
Belonging and Acceptance: Humans are hardwired to seek belonging. If fitting in means staying silent or cutting corners, most people will comply.

Leaders who understand these psychological drivers can start to influence UGRs intentionally, rather than letting them evolve unchecked.

So, What Can Leaders Do?

If you’re serious about transforming your workplace culture, here are three steps to get started:

Uncover Your Organisation’s UGRs: Ask courageous questions. Or undertake a 'UGRs Stock Take' where we can unearth prevailing UGRs
Model the Right Behaviours: Your actions as a leader create powerful UGRs. If you say feedback is welcome but dismiss or punish dissenting views, you’ve just reinforced a UGR louder than any speech you’ll ever give.
Challenge Unhelpful UGRs: When you notice behaviours or attitudes that contradict your desired culture, address them. Ask, “Why do we do it this way? Is this helping us succeed?”

Culture is a Leadership Responsibility

Workplace culture isn’t an HR project—it’s a leadership responsibility. The psychology behind UGRs reveals just how influential leaders are in setting, reinforcing, or challenging these invisible rules.

If you’re leading a team, a department, or an entire organisation, your role isn’t just to set direction—it’s to shape the invisible currents that determine whether your culture thrives or falters.