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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

26 September 2024

KIROI step 4: Cultural change as a success factor

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Cultural change is a key success factor when companies face new challenges. Many clients come to us because they feel that old structures no longer fit. They report stagnating processes, a lack of innovative strength or increasing resistance within the team. Cultural change helps to lay the foundations for sustainable development. It is not a one-off act, but a continuous process that enables far-reaching changes in thinking and behaviour.

Why cultural change is so important

Cultural change often begins with a clear vision. Companies need to understand why they want to change. It is often about becoming more flexible, reacting more quickly to market changes or reaching new target groups. Without a common direction, any change remains superficial.

Many organisations are finding that traditional approaches are no longer effective. They rely on new technologies, but the way of working remains the same. This leads to frustration and declining motivation. Cultural change helps to close this gap. It creates the conditions for new methods to really be put into practice.

Practical examples show how important this is. A medium-sized company from the automotive industry wanted to become more agile. It introduced Scrum methods, but the employees remained sceptical. It was only when managers actively demonstrated new behaviours that the mood changed. The cultural change became a success factor.

Another example: A family business in the healthcare sector recognised that it needed more transparency. It introduced regular feedback rounds and opened up communication. The cultural change led to more trust and faster decisions.

A third example: an IT company wanted to promote more innovation. It created spaces for creative ideas and encouraged employees to take risks. The cultural change made the company more attractive to young talent.

Cultural change as a success factor

Cultural change is not a side effect, but a key success factor. It influences how people work together, how decisions are made and how conflicts are resolved. Companies that accompany cultural change in a targeted manner often report greater motivation, higher productivity and stronger customer loyalty.

An example: A logistics company wanted to improve its service quality. It focussed on a culture of appreciation and regular feedback. The cultural change led to a measurable increase in customer satisfaction.

Another example: A financial services provider recognised that its managers had too little time for employees. It introduced regular coaching sessions and encouraged open communication. The cultural change strengthened team spirit and reduced staff turnover.

A third example: A craft business wanted to become more sustainable. It created common goals and invited employees to play an active role in shaping them. The cultural change made the company a pioneer in the region.

How cultural change succeeds

Cultural change does not happen overnight. It takes time, patience and a clear strategy. Important steps include analysing the current culture, defining a desired culture and developing specific measures. Managers must act as role models and actively involve employees.

An example: A mechanical engineering company wanted to encourage more personal responsibility. It introduced regular workshops and created new reward systems. The cultural change became a success factor for innovative strength.

Another example: A service company wanted to create more transparency. It used digital tools to agree objectives and carried out regular employee surveys. The cultural change strengthened trust and cooperation.

A third example: A retail company wanted to react more quickly to market changes. It created agile teams and promoted a culture of experimentation. The cultural change made the company more competitive.

BEST PRACTICE with one customer (name hidden due to NDA contract) A medium-sized medical technology company wanted to increase its innovative strength. It introduced regular feedback rounds and created spaces for creative ideas. Managers became role models and invited employees to actively participate. The cultural change led to a measurable increase in productivity and higher employee loyalty. Employees reported greater motivation and a stronger sense of team spirit. The cultural change became a success factor for the company.

My analysis

Cultural change is a decisive success factor for sustainable development. It creates the conditions for companies to remain flexible and innovative. The examples show that cultural change is not only possible, but also effective. With the right support and strategy, it can be achieved step by step.

Further links from the text above:

Cultural change: 6 effective steps to change corporate culture

5 factors for cultural change in the company

Cultural change in companies: Your path to the future

Study on corporate culture: impact on corporate success

Corporate culture - definition and steps for cultural change

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic Artificial intelligence here.

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#compliance #Ethical guidelines #InnovationInCompany #Cultural change #Sustainability #Team development 1TP5Corporate culture #Chains of responsibility #Change process

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