While a strong culture can be a significant asset by improving employee commitment and reducing ambiguity, it can also become aliabilityunder certain conditions. One of the most critical liabilities occurswhen a strong organizational culture limits diversity within the organization. Because a strong culture pressures employees to conform to accepted values and behaviors, it can create a "mismatch" for people who bring different perspectives or backgrounds.

Strong cultures often act as a barrier to change because they lead to institutionalization, where behaviors are followed blindly without question. This can be particularly damaging during mergers or acquisitions, where two conflicting strong cultures may fail to integrate. Furthermore, when the shared values do not align with the organization's effectiveness in a changing environment, the culture becomes a "barrier to diversity" and a "barrier to change". Management must therefore balance the benefits of a cohesive culture with the need for diverse viewpoints that prevent "groupthink" and allow the organization to remain adaptable.