Moe Mesbah is a Senior professional leader with 23+ years of experience in Management, leadership, and HR Former Country Managing Director and Cluster HR Head in American President Lines (a global organisation) led a highly innovative international organisation branch in Egypt & Middle East. His current and previous roles included regional responsibilities and projects in different countries such as Saudi Arabia, Bahrain, Qatar, Libya, Sudan, UAE, Turkey, USA, Germany, Kenya, Lebanon, Jordan, UK, Egypt, Netherlands and Singapore, responsible for the transformation program in Saudi Arabia/Bahrain and the overall country HR strategy included achieving the Saudization program, Leads and executes regional development and training projects and programs in Turkey and Libya, Engaged in the Global HR system and the productivity matrix projects with The Global HR team in Singapore, involved in setting up of local HR shared services to cater to 5 countries in the Middle East, Delivered cloud solutions and managed the change moving from web concept to mobile application strategy.
Company culture has long been the “white elephant in the room.” It’s the unspoken element that either drives innovation or derails progress, especially as new generations, like Gen Z, enter the workforce with unique expectations and values. While many organizations boast about their culture on paper, the reality on the ground often reveals significant gaps. Ignoring these gaps not only stifles creativity but also causes friction with a workforce that increasingly prioritizes meaningful work, autonomy, and alignment with personal values. This cultural misalignment, often overlooked, is a barrier to innovation, and addressing it is critical for future success.
Company Culture: The Foundation or the Obstacle?
At its core, company culture is the shared values, behaviors, and beliefs that shape how employees interact and get work done. It’s the invisible hand guiding decisions, communication styles, and problem-solving approaches within an organization. However, many companies struggle to make their stated culture resonate with their workforce.
Take the example of Zappos, a company that has been heralded for its customer-centric culture. Their commitment to empowering employees to “wow” customers is a key driver of their success. Yet, companies trying to replicate this often focus on surface-level initiatives, such as adding perks or fun office decor, without addressing the deeper cultural factors that promote innovation and employee satisfaction. The disconnect between aspirational culture and actual employee experience is where innovation often stalls.
The issue becomes even more pronounced with Gen Z, a workforce generation that is driving rapid change and demanding more from employers than previous generations. For organizations to thrive, especially in today’s innovation-driven economy, they must acknowledge and actively reshape their culture to align with the evolving expectations of this generation.
Gen Z and the Push for Purpose
Born between 1997 and 2012, Gen Z is the first generation to grow up entirely in the digital age. With unprecedented access to information, they are acutely aware of global issues, ranging from climate change to social justice. This generation expects the organizations they work for to share their values and demonstrate social responsibility. According to a study by Deloitte, 77% of Gen Z respondents said that it’s important to work for a company whose values align with theirs. They crave a sense of purpose in their work, not just a paycheck.
Companies that fail to embed this sense of purpose into their culture risk alienating top talent. One practical example is Patagonia, the outdoor clothing company known for its environmental activism. Patagonia doesn’t just market sustainability; it practices it at every level, from using recycled materials to supporting grassroots environmental campaigns. This authenticity resonates with Gen Z employees and customers alike, who see the company as more than just a place to work—it’s a cause to be part of.
Innovation thrives when employees feel a sense of purpose because they are more motivated to solve problems and push boundaries. Organizations need to take a hard look at whether their culture supports or suppresses this drive.
Innovation and Flexibility: The Key to Attracting Gen Z
To unlock innovation, companies must build a culture that is both flexible and inclusive. For Gen Z, flexibility in how and where they work is non-negotiable. Many members of this generation prefer remote or hybrid work environments, valuing autonomy over traditional office structures. This trend, accelerated by the COVID-19 pandemic, has shifted the way companies think about workplace flexibility. Businesses that insist on rigid in-office policies risk losing out on top Gen Z talent.
One case study that illustrates the power of flexibility is Spotify, which introduced its “Work from Anywhere” policy in 2021. Spotify allowed employees to choose whether they wanted to work from home, the office, or a combination of both. This policy wasn’t just about physical location; it was about trusting employees to manage their own time and tasks, a concept that Gen Z fully embraces. By prioritizing flexibility, Spotify not only attracted and retained talent but also saw an increase in innovation, as employees were empowered to work in ways that best suited them.
This cultural shift toward flexibility also mirrors Gen Z’s approach to work-life integration. They do not want work to be a burden but rather a meaningful part of their lives that complements their personal goals and values.
Building a Culture of Continuous Innovation
Fostering innovation requires more than just adopting new technology or hiring creative individuals. It demands a company culture that encourages risk-taking, experimentation, and the freedom to fail. Gen Z, with their digital fluency and comfort with rapid change, are natural innovators. However, they won’t thrive in environments where they feel stifled by bureaucracy or outdated practices.
Google’s 20% Time is a well-known initiative that allows employees to spend 20% of their time working on projects they’re passionate about. The program led to some of Google’s most successful products, including Gmail and Google Maps. While not every company has the resources to offer such a program, the underlying principle is clear: Give employees room to explore new ideas and take ownership of their work.
For Gen Z, who value autonomy and personal growth, this kind of freedom is essential. They are not content with following orders—they want to contribute meaningfully and see the impact of their work. By cultivating a culture that promotes exploration and values contributions from all levels of the organization, companies can tap into Gen Z’s potential for innovation.
## Case Study: Netflix’s Culture of Candor and Accountability
One of the most cited examples of company culture driving innovation is Netflix. Netflix’s culture deck, famously published online, outlines its emphasis on freedom and responsibility. The company encourages open feedback and expects employees to make decisions as if they were the company’s owners. This level of accountability resonates deeply with Gen Z, who value transparency and dislike micromanagement.
Netflix’s culture of candor has directly contributed to its innovation. Employees are expected to take risks and are supported when things don’t go as planned. This environment fosters creativity and experimentation, crucial ingredients for staying ahead in the rapidly changing entertainment industry. It’s no surprise that Netflix remains at the forefront of content creation and technological innovation, consistently adapting to new consumer demands.
Overcoming the White Elephant
It’s easy to ignore the misalignment between a company’s stated culture and its lived experience, especially when profits are strong or there’s an illusion of harmony. However, the tension caused by this disconnect—this “white elephant”—will eventually lead to friction, disengagement, and stifled innovation. Gen Z, with their emphasis on authenticity, flexibility, and purpose, are less likely to tolerate a disingenuous company culture than previous generations.
By addressing the white elephant head-on, organizations have an opportunity to create a culture that not only appeals to the younger workforce but also drives continuous innovation. This means more than just adding perks or token initiatives. It requires a fundamental shift toward a culture of trust, accountability, and alignment with the values that matter most to Gen Z.
In this rapidly evolving world, organizations that prioritize and evolve their culture in tandem with the expectations of the workforce will be the ones that thrive, adapt, and innovate. Ignore the white elephant at your own risk—because it’s certainly not ignoring you.