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Most companies today recognise that strategies remain ineffective without a profound cultural transformation. Superficial measures are not enough. It is about the foundation itself. Values, beliefs and behaviours must change sustainably. This is precisely where the KIROI approach comes in. The fourth step of this proven method supports decision-makers in the decisive phase of cultural transformation. Not as a solution to all problems, but as structured support in shaping a sustainable organisational culture[1][3].
Why cultural transformation is essential for decision-makers
The management level bears the main responsibility for successful cultural transformation. Not because they alone create the culture, but because they set the framework conditions. They define which values are practised. They decide on structures and processes. They communicate the direction. And they embody through their own behaviour whether change is meant seriously or remains just a slogan[1].
Companies such as Microsoft clearly demonstrate this. Under new management, the culture changed from „know-it-all“ to „learn-it-all“. This was not a campaign. It was a practised attitude on the part of the managers, who themselves exemplify openness, feedback and continuous learning.[2] Such transformations do not come about from above. They come about through leading by example and consistent action.
The role of managers in cultural transformation
Decision-makers need to understand: They are not the change-makers, but the enablers. Their task is to create space and clarity. What values will count in the future? How should we work together? Which behaviours do we encourage and which not?[1]
At Zappos, the innovative online shoe retailer, founder Tony Hsieh did just that. He placed corporate culture at the centre of all decisions. This led to flat hierarchies, holistic decision-making models and a legendary customer focus. The result: exceptional employee retention and customer loyalty.[2] This success story shows that cultural transformation pays off when it is consciously organised by management.
Bosch also recognised this need. The company was very conservative for a long time. Group CEO Volkmar Denner understood that this rigid culture cost speed and jeopardised competitiveness. A targeted cultural change has been underway for the past five years. With success: Bosch now works in a more agile way and is a co-developer of cutting-edge technologies such as the self-driving car[8].
Cultural transformation through the KIROI approach: the fourth step explained
KIROI step 4 deals with anchoring and stabilising the cultural transformation. After the preparatory phases, it is now about taking action. Real behavioural change. Transforming new values into lived reality[11].
Implementation: From strategy to living culture
A successful cultural transformation follows a clear pattern. The first step is to analyse the status quo. Where do we stand today? Which values are actually lived? Which ones are only postulated? This honest stocktaking is fundamental[11].
An example: At a financial services provider with 500 employees, the analysis showed that „team spirit“ was preached as a value, but was not practised in reality. The departments worked in isolation. There was hardly any cross-departmental collaboration. The company recognised this: This is where cultural transformation needs to start. Not with new organisational charts, but with new behaviours.
The fourth step of the KIROI approach then brings concrete measures. Regular dialogue rounds are established. Managers carry out cascading orientation programmes. Teams regularly discuss how they can implement the new values in their day-to-day work[11].
At the same time, structures and processes are being adapted. New communication channels are created. Decision-making structures are decentralised where necessary. Performance indicators are aligned with the new values. All of this together creates a consistent system in which cultural transformation becomes the norm rather than a campaign[1].
Practical examples of successful cultural transformation in business
Netflix: freedom and trust as a driver of cultural transformation
Netflix has built a culture based on radical transparency and trust. Employees are given freedom and responsibility to a degree that seems unusual to many. But this is precisely what has created a highly motivated, high-performing organisation. The learning effect for other companies: Cultural transformation does not mean increasing control, but cultivating trust. Decentralised decision-making can massively increase creativity and productivity[2].
The cultural change at Netflix was deliberate. It began with a clear statement from the management: We trust our employees. This message permeated all levels. Meetings were reduced. Personal responsibility was encouraged. Autonomy was rewarded. The result: a company that innovates and acts quickly.
Otto Group: Cultural change 4.0 and digital transformation
The Otto Group recognised early on that digital transformation requires cultural transformation. Under the motto „Cultural Change 4.0", the company focussed on transparency, willingness to learn, rapid feedback and leadership at eye level. This was not just an HR initiative. It was a strategic realignment of the entire company[6].
The result speaks for itself. The Group has significantly increased its online sales year after year. Not despite the cultural transformation, but because of it. The new values enabled faster decisions, better collaboration and greater innovative strength. Otto shows that cultural transformation is not an end in itself. It is a strategic success factor.
BEST PRACTICE with one customer (name hidden due to NDA contract)An international industrial company with 270 employees carried out a value-based transformation over a year and a half. The focus was on cross-departmental collaboration. Regular dialogue rounds were established in which employees developed solutions across locations. Values-based management training sensitised management to their role in the cultural change. The result: trust between departments increased measurably. Internal communication became more transparent. Employees reported greater appreciation and stronger identification with corporate goals. The cultural transformation created the basis for agile working methods, which could then be easily implemented.
Implementing value-based transformation in practice
What do these successful companies have in common? They understand cultural transformation as a systematic process, not as an event. They involve the entire organisation. They measure progress regularly. And they adapt when necessary[4].
Implementation follows tried and tested patterns. First comes the diagnosis. What culture do we have? Which one do we need? Where are the gaps? Then comes the cascade. The management level leads the way. They show through their own behaviour that the change is serious. This is followed by middle management and finally all employees[11].
The four key areas of cultural transformation
Strategic reorientation as a basis
Cultural transformation begins with a clear strategy. What is the new direction? What values should apply in future? What behaviours do we want to promote? The management must first answer these questions for themselves. Only then can they communicate this direction[1].
Structural changes support cultural transformation
Culture does not only live in minds. It also lives in structures. That is why processes, systems and routines need to be adapted in parallel with cultural change. If we propagate „agility“ as a value, but all decisions have to go through five committees, then it won't work. Structure and culture must go together[1].
Personnel development as a success factor in cultural transformation
People need to be developed for the new culture. That doesn't just mean training. It means coaching, mentoring and regular feedback. Managers should be specifically supported in living out the new values. Employees need clear guidance on what success in the new culture looks like[3].
Technological innovation as a catalyst
Technology and culture influence each other. New tools can enable new ways of working. Better collaboration becomes easier when the right platform is in place. But technology alone does not create cultural transformation. It supports it if the cultural readiness is there[3].
Overcoming common challenges in cultural transformation
Recognising and transforming resistance
Cultural transformation often provokes resistance. This is normal and understandable. People like security and familiarity. New culture means uncertainty at first. Good cultural transformation consultants take this resistance seriously. They see it as an important signal. They seek dialogue instead of confrontation. They explain the why again and again. They give people time to adapt[9].
Ensure consistency between speech and action
Nothing harms cultural transformation more than lack of credibility. If management preaches new values but displays old patterns of behaviour, then the entire initiative loses momentum. This is why the role model function of management is so important. They must live and demonstrate the new values on a daily basis[2].
An industrial group tried to create a culture of openness. But in the first meetings following this initiative, nobody listened to the employees. The managers continued to talk in the same old way. The employees recognised immediately that this was not genuine. The cultural transformation lost credibility. Therefore: authenticity is non-negotiable.
Be patient and measure success
Cultural transformation takes time. It's not a matter of weeks or months. It takes years. The first phase can be quick: Creating awareness, communicating the vision. But then comes the long phase of relearning. Habits really have to change. That takes patience[4].
At the same time, progress should be measured. Regular pulse checks show how the transformation is going. Where is it working well? Where is it stuck? This data helps with adaptation. Cultural transformation is not a fixed programme. It develops iteratively with the organisation[4].
KIROI step 4: Concrete tools for decision-makers
Dialogue formats as a driver of cultural transformation
Cultural transformation comes about through dialogue. Not in speeches from above. That's why successful companies establish regular dialogue rounds. Circles, cultural conferences, team discussions in which real questions are asked: How do we deal with the new values? What helps, what hinders? How can we become different together?[4]
These dialogues achieve three things at the same time: they make culture visible. They give people a voice. And they create commitment. Those who help shape the new culture are more likely to support it[4].
Leadership development as an anchor point
KIROI step 4 relies heavily on
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