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

5 October 2024

Mastering cultural transformation: KIROI step 4 for decision-makers

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Today, cultural transformation is a challenge that many organisations want to master in order to remain competitive in the long term. In the fourth step of the KIROI model for decision-makers in particular, the focus is on actively supporting and effectively shaping change. Cultural transformation therefore involves not only adapting structures, but also a profound change in values, behaviour and beliefs that supports sustainable success.

Cultural transformation as a strategic lever for managers

Managers are indispensable shapers and role models in the process of cultural transformation. They assume responsibility by exemplifying and visualising the desired cultural values. In manufacturing companies, for example, innovative teams show how culture can be adapted to new market requirements through transparent communication and agile working methods. These impulses create an atmosphere that promotes cooperation and trust.

In the service sector, many managers report that opening up communication breaks down old silo structures and thus supports cultural transformation in the long term. At an international IT service provider, the culture was deliberately transformed in order to promote innovation and retain talent in the long term. This resulted in a mindset that emphasises continuous learning and personal responsibility.

Companies from the SME sector use the fourth KIROI step to support management teams in actively managing change. This is not about pure compliance or guidelines, but about impulses and support that enable cultural development in an authentic and credible way.

BEST PRACTICE with one customer (name hidden due to NDA contract)

In a medium-sized mechanical engineering company with around 300 employees, a change from a rigid culture characterised by departmental thinking was initiated as part of the cultural transformation. The managers received intensive coaching in KIROI step 4 in order to grow into new agile leadership principles themselves as role models. This resulted in significantly improved communication structures and greater motivation, which visibly supported the cultural change.

Practical impulses for decision-makers in cultural change

The fourth step in the KIROI process focuses on active shaping by managers. Here are some tips on how decision-makers can support cultural transformation:

  • Set an example: Managers should make the desired values authentically visible, for example through transparency and open communication.
  • Create spaces for dialogue: Regular, participative formats promote dialogue between management and employees as well as the joint development of the culture.
  • Distribute responsibility: Managers strengthen teams by encouraging them to work independently and giving them the freedom to make decisions.
  • Actively obtain feedback: An open feedback culture supports the adaptation and continuous development of cultural processes.
  • Moderate the willingness to change: Decision-makers accompany and support different reactions to change in order to take up resistance at an early stage and utilise it constructively.

Practical examples show that decision-makers who take these impulses to heart accompany the cultural change as a sustainable process and thus ensure the success of their organisation.

Cultural transformation and the momentum for sustainable change

Successful cultural transformation is not the result of short-term actions. Decision-makers must understand change as a continuous process. This means that cultural transformation must be carefully planned but flexibly implemented. Impetus and support from managers are key to maintaining positive dynamics.

Companies such as Bosch show how a gradual opening up of the corporate culture and the skipping of previously obstructive processes can create competitive advantages. At Bosch, for example, the change in culture led to faster development of innovations such as safety radars for electric vehicles.

Managers in the IT sector are also increasingly focussing on cultural transformation in order to deeply embed agile ways of thinking and working. The emphasis on trust and self-organisation supports employee loyalty and innovative strength, particularly in international companies.

BEST PRACTICE with one customer (name hidden due to NDA contract)

An international IT company used cultural transformation to change from a hierarchical to an open, innovation-promoting culture. The managers in the fourth KIROI step played a key role in this by taking responsibility themselves and actively integrating the cultural change into the daily work process. In this way, trust was promoted and talent could be retained in the company in the long term.

My analysis

Cultural transformation is a complex but important management task for decision-makers. The fourth step of the KIROI model offers practical guidance for actively supporting change. Managers play a decisive role in ensuring that values are not only defined, but also lived and developed. Examples from a wide range of industries show that transparent communication, the promotion of personal responsibility and the creation of trust are important cornerstones. This makes it possible to anchor cultural transformation as a permanent success factor.

Further links from the text above:

Successful cultural transformation for companies
Corporate culture: Top 3 examples of strong organisations
Cultural transformation - 4 steps and 4 networks
Mastering cultural transformation: KIROI step 4 for leaders
4 companies with successfully implemented cultural change

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#ChangeManagement #compliance #Ethical guidelines 1TP5ManagersBalance #KIROI model #Cultural transformation #Sustainability 1TP5Corporate culture #Chains of responsibility

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