Where to Begin When Considering Culture: Purpose, People and Performance

For Corporate Real Estate (CRE), organizational culture can have a profound impact on how teams operate, how clients perceive value and how the business grows. Whether redesigning office space, managing large portfolios or reorganizing internal teams, CRE culture must be viewed holistically—as a whole system shaped by leadership and historical decisions—if meaningful change is to occur.

So, where do you begin when considering culture? Recognizing that culture is like a multifaceted gem, each facet reflecting a different aspect of the organization. Viewing culture as a comprehensive system, influenced by both current leadership and historical legacies, is necessary to effectively address its complexity.

Organizational culture pioneer Ed Schein describes culture as "the way a group of people solves problems and addresses dilemmas," shaping how work is conducted and how individuals interact within the organization.¹ This learned behavior is influenced by both past and present leadership and evolves as a response to challenges, making it deeply ingrained but changeable. Kurt Lewin, another influential figure in organizational theory, emphasizes that behavior is shaped by the environment and can therefore be adapted.² Since culture is a learned response, it can be intentionally reshaped to address both current challenges and future goals.

Three interconnected components—Purpose, People and Performance—serve as the backbone of any thriving organizational culture, each influencing and shaping the others.

Purpose: Empowering Leaders to Transform

The purpose of an organization is its reason for being beyond profit-making, the core set of principles that guides decision-making and shapes the strategic vision. A clear purpose empowers clients and the broader communities they serve.

When considering culture, aligning with a clear and motivating purpose is the first step. A well-defined purpose gives employees a sense of direction, and when clearly communicated and embraced, it becomes a north star that influences behavior at every level of the organization. Employees are more motivated and invested in their work when they feel connected to something larger than themselves. Purpose-driven organizations use this framework to create meaningful connections with clients, ensuring that the approach is not just transactional but also transformational.

However, having a purpose is not enough. CREs must continuously reiterate and reinforce their purpose through their actions. Leadership plays a crucial role here by modeling behavior that aligns with the company's values. This drives momentum, pushing culture toward greater alignment.

People: Building Effective Leaders and Teams

Shaping or transforming culture ultimately requires people to communicate, collaborate and bring the organization's purpose to life. Culture, in this sense, is about collective behavior that thrives when people feel engaged, supported and aligned with organizational goals.

In real estate, whether working internally or with clients, fostering a culture of collaboration and inclusivity is beneficial. Operating across markets and geographies enhances the cultural diversity of the workforce and client base. Diversity brings a range of perspectives and experiences that, when harnessed effectively, can drive innovation, increase client satisfaction and create a resilient organization.

Leadership development, team dynamics and talent management are central to people and culture. Teams excel when individual talents are cultivated and empowered with a broader purpose. Talent management involves not just hiring the right people but developing their skills and nurturing their potential to deliver and drive growth.

Performance: Resiliency

The third pillar, performance, is the tangible result of a strong organizational culture. A thriving culture leads to high performance because employees are aligned with the company's purpose, motivated by shared values and engaged in their work. For the real estate industry, performance is measured not only by financial metrics but also by the value created for clients, stakeholders and communities.

When organizations focus on building a performance-driven culture, they set clear expectations and provide the tools and resources that teams need to succeed. This includes setting measurable goals, fostering accountability and creating feedback loops that promote continuous improvement.

Building a culture of accountability is key to driving high performance. Taking ownership of their actions and outcomes helps employees achieve a higher level of commitment and results. This sense of accountability should permeate the entire organization, from leadership to rank-and-file individuals, ensuring that everyone understands their responsibilities.

Driving Change in CRE Culture

Changing a CRE's culture is no small feat. Culture is deeply embedded in an organization’s DNA, and driving meaningful change requires intentionality, time and effort. C-suites are also recognizing the value and strategic impact real estate has on two important cultural drivers: cost and experience. To remain competitive and continue delivering exceptional value to clients, we recommend these actions:

Practical Steps for Driving Culture Change in CRE

1. Assess the Current Culture: Before making changes, CRE leaders must have a clear understanding of the current culture. This can be achieved through employee surveys, client feedback and leadership assessments. Identifying cultural strengths and weaknesses will provide a starting point for driving change.
2. Define the Desired Culture: Once the current culture is understood, CRE leaders need to articulate the culture they aspire to build. This vision should align with the enterprise’s purpose and/or strategic goals. Communicate this vision clearly to all employees so that everyone understands the direction and their role in the transformation.
3. Engage Employees: Culture change cannot be driven solely from the top down. Employees at all levels must be engaged and involved in the process. Creating opportunities for open dialogue and empowering employees to contribute to the change effort will lead to greater buy-in and long-term success.
4. Align Systems and Processes: To embed cultural change, your CRE department must ensure that its systems, processes and policies reinforce the desired culture. This includes performance management systems, recognition programs and leadership development initiatives. These systems should incentivize behaviors that align with the desired culture and discourage those that don’t.
5. Monitor Progress and Adjust: Cultural change is a long-term process, and organizations must continually monitor progress with regular check-ins, feedback loops and revisiting the cultural vision as the organization evolves.

For More Information:

With a clear focus on purpose, people and performance, organizations can create a strong foundation for cultural growth. CBRE’s Organizational Health Assessment (OHA) is a proprietary tool for organizations to evaluate their culture with the support of the three pillars: people, purpose, and performance. To learn more about the OHA’s benefits, check out the Organizational Health Assessment here.