Most managers are familiar with the problem: a new strategy is announced, processes are optimised and yet little happens. The reason often lies in a lack of cultural transformation. Superficial adjustments are not enough to bring about sustainable change. Instead, managers must actively shape and exemplify the far-reaching changes in values, beliefs and behaviour. KIROI Step 4 offers a proven model for this. It positions managers as central shapers of cultural transformation and shows how they can authentically anchor change[8].
What is cultural transformation and why is it crucial?
Cultural transformation is far more than just a buzzword in management guides. It is a systematic process. Organisations consciously and purposefully change their corporate culture[1], which involves far-reaching changes. They affect values, beliefs and behaviour[1]. These elements shape how employees work together. They also determine how the organisation presents itself to the outside world.
A sentence by management pioneer Peter Drucker summarises this succinctly: Culture eats strategy for breakfast.[7] This means that without a cultural foundation, even the best strategies will fail. Successful cultural transformation therefore leads to greater employee loyalty and increased resilience.[2] Companies that actively shape cultural transformation adapt more quickly to market changes.
The distinction between change management and cultural transformation
Many managers confuse cultural transformation with classic change management. This is a common mistake. Change management focuses on structural changes[3] and involves new processes, new systems and new procedures. Cultural transformation, on the other hand, goes deeper[3] and deals with fundamental beliefs and attitudes. These influence how people work and interact with each other.
Practical examples make this clear. A company introduces a new CRM system (change management). This is not the same as a cultural transformation towards customer-orientated thinking in all areas. A retail company reorganises its branch structure (change management). This is fundamentally different from the cultural transformation towards agile decision-making processes. A manufacturing company digitalises its production processes (change management). This is different from a cultural transformation towards a corporate culture that is open to innovation.
Cultural transformation is the perfect basis for structural innovation. It prepares the ground. New processes and systems can then successfully build on it[3].
KIROI step 4 as the central pivotal point
The KIROI model offers a structured path to successful cultural transformation. The fourth step plays a central role here[8], where managers become active change ambassadors. They not only shape the change in theory, but also experience it themselves.
KIROI step 4 is characterised by the active involvement of managers as change ambassadors[8]. The cultural transformation then no longer becomes an abstract concept, but a lived reality. Managers receive impulses. These help them to force changes in behaviour. Structures are influenced in such a way that the new culture is embedded in work processes and systems[8].
Managers as role models for cultural transformation
One thing is certain: employees look at their managers. They observe exactly what leaders actually do and not just what they say. This is particularly important in a cultural transformation. Managers must actively exemplify the new values and behaviours[6] An individual coaching session with each manager has proven its worth. In doing so, leaders recognise which values they can best act as a role model for[6]. They reduce these that stand in their way of implementing other elements[6].
A team coaching process provides additional support for managers. In this way, they become role models for the desired interaction with one another[6]. It shows other parts of the organisation what the new culture actually looks like. It becomes an inspiration for the entire organisation.
BEST PRACTICE with one customer (name hidden due to NDA contract)A manufacturing company with around 300 employees wanted to transform from a hierarchical to an agile culture. The management started with individual coaching sessions for the 15 middle-level managers. Each manager worked out their personal role in the transformation process. The first results became apparent after three months: Teams reported more personal responsibility. Decisions were made more quickly. The new behaviours were then cascaded throughout the entire organisation in two waves. Employees experienced the change as authentic and became ambassadors of the new culture themselves.
The four pillars of successful cultural transformation through leaders
1. expansion of awareness and new behaviours
Cultural transformation first requires awareness. Managers must understand why the change is necessary[6] and have a clear view of the objectives. Then they can demonstrate new behaviours authentically. Examples can help here. A bank switches from product sales to customer advice. Managers must first understand for themselves why this change makes economic sense. They then advise their customers differently. They listen more. They understand real needs. This change is quickly recognised and imitated by teams.
A service company wants to switch from strict rule-orientation to more flexibility. Managers first have to be aware of this. They do not immediately consult the rules when problems arise. Instead, they ask for solutions. They encourage creativity. They also tolerate mistakes as learning opportunities. This new behaviour becomes the new norm.
2. adapt structures and processes
Cultural transformation without structural adaptation remains stuck. Managers must therefore also change structures in parallel with new behaviours[6]. This involves the following questions: Which structures and processes do we want to change? How do we anchor the culture better?[6] A consulting firm promotes collaboration across departmental boundaries. This requires new processes: Project teams from different departments. Joint key performance indicators instead of isolated targets. Regular cross-departmental meetings. The structure then supports the new culture.
An industrial company wants to innovate faster. The old structure with several authorisation levels slows down innovation. The managers create a new structure: faster decision-making processes. Small, self-organised teams. Regular sprint meetings instead of long planning cycles. The new processes enable the desired cultural change.
3. regular dialogue and reflection
Cultural transformation is not a sprint, but a marathon. This is why it requires regular reflection[6] Managers should continuously discuss the following questions with their teams: Which values are we already living by? What do we still find difficult? How can we change this?[6] This open dialogue is crucial. It shows that the cultural transformation is serious.
A technology company with the goal of creating a fault-tolerant culture introduces monthly reflection sessions. Teams discuss openly: Where were we able to make mistakes and learn from them? Where was there still a fear of making mistakes? This transparency accelerates the cultural transformation considerably. Employees see that the management is serious.
4. skills development and training
Cultural transformation often requires new skills. Managers must therefore launch training activities[6] to help employees develop new skills. These are necessary in order to implement the values. A company strives for more agility. This requires improved communication skills, for example. Employees learn to give feedback more quickly. They train to make decisions in uncertain situations. They practise dealing constructively with contradiction. These skills are central to an agile culture.
An administrative organisation wants to be closer to its citizens. Employees must learn to actively recognise customer needs. They need training in empathy and communication. They practise replacing standard answers with individualised solutions. This training directly supports the planned cultural transformation.
BEST PRACTICE with one customer (name hidden due to NDA contract)A retail company with 150 shops wanted to switch from cost leadership to customer service excellence. KIROI step 4 was implemented here in a structured way. First, we coached the 25 store managers individually. They recognised which new behaviours were necessary. We then provided intensive support to four pilot branches. These became the nucleus of the new culture. After six months, all four branches showed significantly higher customer satisfaction. The model was then cascaded. Other branches followed the best practices. After twelve months, customer orientation had become noticeably anchored in the entire branch organisation. Sales increased by seven per cent.
Practical implementation steps for managers
Step 1: Personal preparation and self-reflection
Every cultural transformation begins with self-reflection on the part of managers. What are my personal values? What behaviours would I like to change? Where could I go further? This inner dialogue is fundamental. It enables genuine role modelling. Only when managers transform themselves can they take others with them.
Step 2: Take your own team with you
After the personal preparation, the next step is for your own team. Managers invite their team to shape the cultural transformation together. They share their thoughts. They ask for the perspectives of others. They create space for questions and concerns. An open team coaching process helps here. The team becomes the nucleus of the new culture in its own area.
Step 3: Cascading in width
Once the new culture has stabilised in its own area, cascading follows. Managers support their teams in passing on the new behaviour. A proven model: those who teach, learn the most[6] Managers in the company carry out cascading orientation programmes for other managers. In this way, the new culture spreads organically through the organisation.
Step 4: Demonstrate visible successes
Cultural transformation also needs success stories. Managers should regularly report on progress. They show where new behaviours are already leading to better results. They recognise employees who embody the new culture. This motivates others to become active as well.
Frequent challenges in cultural transformation
Managers often report the following difficulties with cultural transformation:
Resistance from the workforce: Some employees cling to old behaviours. They do not recognise the need for cultural transformation. It helps to involve these people in the dialogue. You ask about their concerns. Explain why the cultural transformation makes economic sense. With patience and empathy, a lot of resistance can be overcome.
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