How Homogeneity Contributes to Organisational Failure
Research analysing large institutional failures has identified 23 common cultural factors that contribute to avoidable disasters, ranging from accidents, program failures to corruption.
Cultural Factors
Hald et al. (2020) proposed that these cultural factors can be grouped into two categories: causal (creating conditions for failure) and corrective (missing opportunities to prevent it).
One causal factor that has been largely overlooked in current safety and ethical culture work is organisational homogeneity.
Identity Alignment
The Visual Identity Leadership Scale (VILS) utilises overlapping circles to assess the degree to which leader behaviours align with team identity (Steffens et al., 2024).
What is organisational homogeneity?
When a workforce or team widely shares maladaptive values and practices, often due to similar backgrounds, experiences, and worldviews.
Language Patterns
Analysis of team communication for collective identity markers such as how often people say "we" versus "I," and whether shared values appear naturally in conversations rather than just formal presentations (van Dick et al., 2018).
How it happens
Hald et al. (2020) found that it develops when leaders hire employees who “emulate their own qualities” or bring entire teams from previous jobs, creating echo chambers.
Behavioural Consistency
Observation of whether actual decision-making processes reflect stated values, particularly during stress or conflict when true priorities become visible (Steffens et al., 2014).
How it causes organisational failure
Homogeneity was a cultural factor that contributed to 12% of the 74 institutional failures reviewed, in the following ways:
Creating “groupthink” - collective defensive avoidance where problems are ignored together
Enabling “escalation of deception” - small ethical compromises grow into major scandals
Normalising cut-throat cultures (like Enron’s “rank and yank” system)
Making organisations crawl “into a defensive ball” when problems arise
The blind spot
Different worldviews get eliminated. Warning voices disappear. Everyone agrees to ignore what should be questioned.
While homogeneity feels safe, it’s actually risky.
Cultural Stability
Longitudinal tracking of cultural norms including persistence during transitions, challenges, and growth phases rather than fragmenting under pressure (van Dick et al., 2021).
Measurement Frequency
Studies across multiple countries demonstrate that brief, frequent assessments are more effective than annual comprehensive reviews for maintaining alignment (Matthews et al., 2022). Why? Because identity leadership requires constant calibration between approach and team needs. With this real real-time adjustment organisations are reporting improved leadership development outcomes and more effective succession planning (van Dick et al., 2018, 2021).
Matthews, R. A., et al. (2022). Journal of Business and Psychology, 37, 639-673.
Steffens, N. K., et al. (2014). The Leadership Quarterly, 25(5), 1001-1024.
Steffens, N. K., et al. (2024). British Journal of Social Psychology, 63, 1658-1680.
van Dick, R., et al. (2018). Journal of Occupational and Organisational Psychology, 91(4), 697-728.
van Dick, R., et al. (2021). International Journal of Environmental Research and Public Health, 18(22), 12081.
