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

26 January 2025

Mastering cultural transformation: KIROI step 4 for leaders

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Today, cultural transformation is an essential lever for sustainably strengthening companies in a dynamically changing world. The fourth step in the KIROI model is a key phase for leaders in particular: they are required to actively support cultural change and take responsibility for long-term change. In this article, you will learn how managers can successfully master cultural transformation - with practical examples and concrete impulses.

Understanding and shaping cultural transformation

The term cultural transformation describes a far-reaching process in which values, beliefs and behaviours are systematically developed within an organisation. It is not about superficial adjustments, but about sustainable changes that enable better adaptation to today's challenges, such as digitalisation or new forms of work. Managers are at the centre of this, as they must act as role models and drivers of change. Only by actively living the desired culture can credible impetus and acceptance be created among employees.

In sectors such as manufacturing SMEs, for example, innovative management teams support cultural transformation by enabling greater transparency and promoting agile working methods. In the service sector, clients often report that trust and open communication are essential in order to break down existing silo structures. An international IT company, on the other hand, uses cultural transformation to anchor an innovation-driven mindset and retain talent in the long term.

KIROI step 4: Actively lead cultural transformation

The fourth step in the KIROI process particularly emphasises the role of leaders: managers should keep the new culture alive together with their teams. This means that they make the change visible, promote feedback processes and consistently demand change. They not only provide support, but also ensure that the defined values and behaviours become tangible on a daily basis.

An example from the healthcare sector shows how a clinic manager supported the cultural transformation through regular workshops and personal discussions. In this way, reservations about new work processes were quickly addressed and a collegial culture of error was established. In turn, a retail company achieved a high level of employee motivation through transparent communication of the transformation progress. Another example is provided by an educational organisation in which managers act as cultural mediators. They promote dialogue between generations and create space for learning.

Best practice: Cultural transformation with KIROI Step 4

BEST PRACTICE with one customer (name hidden due to NDA contract) The management level of an innovative technology group used step 4 of the KIROI model to anchor the new culture through targeted coaching and structured feedback cycles. Employees were more closely involved in decision-making processes and managers acted as cultural role models. The change led to a measurable increase in innovative strength and employee satisfaction.

Practical tips for leaders on cultural transformation

The following measures are recommended to successfully support cultural transformation:

  • Clear communication: Communicate the status of the change regularly and explain the purpose behind it.
  • Act as a role model: Live the new values authentically to create credibility.
  • Promote a feedback culture: Encourage teams to openly discuss progress and obstacles.
  • Make successes visible: Celebrate milestones and recognise individual commitment.
  • Maintain flexibility: Adapt the action plans iteratively to new findings and needs.

In the automotive industry, managers report that creating safe learning spaces significantly reduces resistance. In the consulting environment, cultural change processes are particularly successful when employees are allowed to play an active role in shaping them. An energy supplier was able to noticeably increase the response and appreciation that are central pillars of a new culture through regular team events and management seminars.

Cultural transformation as a competitive advantage

Creating a vibrant corporate culture is not just an internal concern. Companies that consistently implement cultural transformation benefit from greater adaptability and innovative capacity. New talent feels more attracted and employee loyalty improves. Cultural change thus becomes a sustainable driver of corporate success.

For managers in particular, they are the driving force and guide in the complex process of cultural transformation. Their ability to shape change and bring people along with them is often decisive for success. It is worth investing continuously in your own development in order to keep pace with the dynamics of change.

My analysis

Cultural transformation is a multi-layered process that is largely characterised by the commitment of managers. The fourth step in the KIROI model illustrates how leaders can act as active shapers of their cultural environment. By setting an authentic example, communicating clearly and providing targeted feedback, they can anchor the change in the long term. Practical examples from various industries show that flexible and participative approaches are particularly promising. It is becoming increasingly important for companies to strategically support cultural transformation, as this is the only way to master the challenges of the future.

Further links from the text above:

The path to successful cultural transformation
Managers as a catalyst for co-creative transformation
Cultural transformation - 4 steps and 4 networks
Cultural change: 6 effective steps to change corporate culture
Corporate transformation: culture, processes & AI
Culture & leadership development
Conscious cultural transformation
Cultural transformation: tasks of the management
Cultural transformation - definition and procedure
Mastering cultural transformation: KIROI step 4 for managers

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