David Liddle is President of the People and Culture Association (PCA), CEO of The TCM Group, and author of the forthcoming Kogan Page book People and Culture: A practical guide for HR and Leaders. He talks to Finance Day about shifting from traditional HR to people-and-culture models, embedding transformative justice, and building fair, values-led workplaces.
What inspired you to develop the Transformational Culture Model, and how does it differ from traditional HR approaches?
In my roles as a business leader and an independent mediator, coach, facilitator, and culture change specialist, the past three decades have afforded me a unique view of the modern workplace. Having personally witnessed the destructive impact of cumbersome systems, retributive processes, and bureaucratic operating models, I have long advocated for meaningful change. It feels now though that a genuinely exciting new era of work has arrived.
The Transformational Culture Model emerged from a recognition that, whilst leaders and people professionals are increasingly acting as culture architects, they lack a coherent cultural blueprint to work from. Consequently, they often slip into the habit of managing people through policy, guiding them away from purpose-driven leadership. I imagined an alternative path, one grounded deeply in shared values and common purpose. A culture that is focused on people and relationships as central to organisational life.
How do you define transformative justice, and what steps can leaders take to move away from blame and punishment?
Transformative justice positions humanity, integrity, and learning over blame and punishment. It invites us to move beyond binary notions of right and wrong, and into relational spaces where healing, accountability and prevention can co-exist.
For leaders and HR, this means replacing punitive procedures with objective decision-making processes and mechanisms that support early resolution such as coaching, mediation and restorative practice. Above all, it means modelling curiosity and compassion, particularly when things go wrong.
What does a people and culture function look like in practice, and how does it replace the outdated HR model?
Throughout the writing of my recent book, People and Culture, I had the privilege of speaking with more than 30 chief people officers and senior executives, each of whom shared with me powerful stories about their journey towards people-centred, purpose-driven, and values-based organisations.
Their stories highlighted that the modern people and culture function represents a powerful evolution of traditional HR practices. Far from a superficial change of identity, it respects and builds upon the foundations laid by HR, while placing people, purpose, and shared values at the very core of organisational life.
Practically, a people and culture approach cultivates working environments where individuals feel genuinely seen, consistently supported, and safe to contribute fully. Systems and processes become empathic and effective and leadership expands beyond formal authority.
How can organisations balance the needs of the business with fair, just, and inclusive outcomes when conflicts arise?
Fairness and commerciality are deeply interconnected imperatives, each reinforcing and sustaining the other. Organisations that place trust, justice, and inclusion at their core create the precise conditions necessary for sustained high performance. When individuals feel genuinely heard, consistently respected, and safe to express themselves, innovation flourishes, engagement deepens, and accountability becomes part of the organisational culture.
Why is it important to unite wellbeing, engagement, and inclusion into a single WEI discipline, and how should companies begin that process?
Wellbeing, engagement, and inclusion are often addressed through distinct strategies, managed separately and measured independently. In practice, however, they form an inseparable whole: inclusion nurtures engagement, engagement sustains wellbeing, and wellbeing unlocks sustainable performance. In my work, I advance the development of a WEI centre of Excellence which brings together DEI, Employee Engagement and Employee Welbeing.
The WEI Centre Of Excellence integrates these essential elements into a cohesive, human-centred ecosystem, shifting organisational thinking from standalone initiatives towards deeply embedded cultural principles.
Can you share a real-world example of a company that transformed its culture by adopting your blueprint?
Next Plc, the major UK-based retailer employing over 46,000 people, is an inspiring example of an organisation that has successfully transformed its culture by embracing the principles outlined in my blueprint. Through their innovative initiative, Next Resolution, created in partnership with The TCM Group, Next replaced outdated grievance and disciplinary processes with a compassionate, dialogue-led framework, deeply rooted in the principles of Transformative Justice.
The measurable impacts have been profound, including:
- A 48% reduction in disciplinary cases.
- An 11% decrease in grievances.
- Significant financial savings (approximately £1,101 per avoided formal case).
- Increased manager confidence and capability, with engagement surveys averaging an 8.2/10 satisfaction rating.
How do you train leaders to become custodians of culture and build a climate of trust across all levels?
Custodianship of culture begins with a meaningful shift in how leadership is understood and experienced. Leaders are guided to embrace their role as stewards of organisational climate – shaping through what they say, and how they show up, listen, and respond in every interaction.
My highly acclaimed Culture Catalysts™ programme embodies this approach, equipping leaders, managers, and HR professionals with the deep skills and awareness needed to drive transformational change effectively.
At the core of this training is the 7Cs framework – Courage, Common Purpose, Communication, Compassion, Curiosity, Connection, and Collaboration. Far more than abstract ideals, these principles become tangible, lived realities, enabling leaders to act relationally and decisively when challenges arise.
What common obstacles prevent organisations from implementing transformational culture practices, and how can they overcome them?
Often, the most significant obstacle to embracing transformational culture is rooted in fear – fear of letting go of familiar systems, fear of uncertainty around change, and fear associated with shifting established forms of control. Organisations can find themselves deeply attached to legacy practices, even when those practices no longer serve their intended purpose. Alongside this attachment, there can be an underlying belief, frequently unspoken, that a human-centred approach carries risk, ambiguity, or lacks the measurability to justify its adoption.
To address these obstacles, organisations can begin gently, through targeted pilot programmes that provide compelling evidence of what is possible. These pilots offer opportunities to collect meaningful stories and experiences, enabling leaders to observe the power of relational rather than reactive leadership. As tangible outcomes begin to unfold – fewer conflicts, deeper engagement, enhanced trust – the rationale for embracing transformational culture grows clear, compelling, and undeniably effective.
How should companies measure the impact of a transformational culture on performance and employee satisfaction?
Effectively measuring transformational culture calls for a comprehensive, whole-system approach – one that thoughtfully integrates quantitative indicators with deeper qualitative insights. While traditional metrics such as grievances, absenteeism, and turnover rates provide initial insight, organisations gain richer understanding by considering a broader array of systemic indicators. This might include tracking performance and productivity, regularly gauging motivation and engagement through pulse surveys or employee net promoter scores, and assessing the frequency, openness and effectiveness of internal communication – for example, measuring how freely ideas, feedback, and knowledge move across teams and departments.
Ultimately, transformational culture measurement is about understanding organisational health in its broadest sense – seeing clearly how relationships, dialogue, resilience, and values alignment collectively shape an environment in which people flourish, individually and together.
Looking ahead, what do you believe is the next evolution in culture change and people strategy over the coming five years?
We are entering an era, one that I describe as transformationalism, in which culture emerges fully as the organisational strategy itself, weaving through every aspect of how work is envisioned, felt, and delivered. Over the coming five years, I anticipate a significant acceleration in the shift away from transactional approaches towards deeply relational, dialogue-rich, and justice-infused ways of working.
As organisations grapple with complex dynamics such as rapid technological advances, shifting workforce expectations, and heightened social responsibility, the critical differentiator will be the capacity to lead through empathy, relational skill, and authentic inclusivity. Organisations committed to cultivating purposeful, values-based cultures will not only navigate uncertainty more effectively but will also position themselves to thrive in the long term.
