Why progressive companies fall and how we can do better

Atlassian was once the darling of Australia’s tech industry. A workplace icon. Celebrated for its values of openness, collaboration, and “no bullshit” culture.

It won “Best Place to Work” accolades multiple years in a row. It modelled remote-first innovation before most knew what that meant. (If you don’t, look it up.) Atlassian was known for being generous, investing in mental health, and sharing playbooks that promote psychological safety.

And yet, behind closed doors, it became, according to some former employees, “the most toxic workplace I’ve ever experienced.” Honestly, hearing this broke my heart a little.

Factionalism. Inner circles. Unchecked influence and abuse of power. Behaviour that is not aligned with Atlassian’s values. This is what knocked this well-respected organisation off its perch.

A co-founder quietly pitched a joint exit to try to reset a broken power dynamic, for the good of the company. However, he departed on his own, leaving the company to continue deteriorating.

So how does a company with all the right values on paper get here?

Power doesn’t disappear in progressive spaces. It just hides.

Many of us working in leadership and organisational culture are familiar with the signs. Founder mythologies. Emotional intelligence without power intelligence. Good intentions masking systemic privilege. This can be hard to see from the top and takes courage to face the impact.

Progressive cultures often rely on trust and shared values, but these can become a smokescreen when the distribution of power goes unexamined. Understandably, power and privilege are taboo. Think about who benefits and what unintended consequences creep in.

At Atlassian, two visionary co-CEOs led together for over 20 years. But when their relationship soured, there weren’t robust systems in place to hold that tension well.

Informal power gathered around one leader. A tight circle of influence emerged. Dissidents were sidelined. Privilege went unexamined.

Power didn’t corrupt those at the top; the breakdown of role as co-CEOs and unequal influence went unquestioned. The culture was geared toward psychological safety but without an appreciation of power dynamics and being skilled at addressing unhealthy use of power, mechanisms for psychological safety fail.

You can’t values-and-virtue your way out of toxic dynamics if your structures don’t evolve as the circumstances change. Power didn’t corrupt, it went unquestioned.

Culture isn’t what’s written on the wall, it’s what power protects.

I work with leaders and boards navigating complex change, often in purpose-driven and community-based organisations. What I see again and again is this:

• Power thrives in ambiguity if it’s not named and shared.
• Privilege, left unexamined, will shape decision-making behind the scenes.
• Culture doesn’t erode because we stop caring; it’s because we stop paying attention to who has influence and how it’s used.

Atlassian offers a cautionary tale.

But also a turning point.

What if, instead of avoiding the discomfort of power, we welcomed it in?

What if boards and founders built in rituals of reflection and redistribution, not just accountability metrics and training that attempt to address deeply embedded behaviours?

What if we stopped assuming that good people with good values would automatically create good systems? Understanding the role and impact of power and privilege is a crucial component of this puzzle. It’s about shared responsibility and leadership at every level.

This is the leadership shift I care about.

I believe we can cultivate more emotionally intelligent leaders, power-aware, system-literate, privilege-conscious leadership cultures.

Cultures where it’s safe to speak up, not just on safe topics.

Where founders can be challenged and accountability is modelled with humility.

Where psychological safety and governance work in tandem.

Ultimately, our ability to build cultures of care depends on our willingness to understand power and privilege and learn to use them effectively.

This can sound daunting, yet until we face these challenges, the cycle will continue.

I’d love to hear from others working at the intersection of culture, power, and leadership:

🌀 What do you see as the warning signs when a culture is quietly breaking down?

🕸️ What’s needed to build resilient, relational, power-sharing organisations?

🌐 How do we go beyond well-intended inclusion initiatives and face the impact of our relationships to power and privilege?

Let’s make this part of the conversation to build a better future. Let’s learn from what went wrong at Atlassian to explore what’s possible when we lead well.