For many organisations, cultural transformation is a challenge that they need to tackle with great care. The fourth step is particularly important in the KIROI model, as the focus here is on sustainably anchoring the changes in the organisation. Decision-makers are faced with the task of permanently establishing new ways of thinking and behavioural patterns and making the change tangible. Cultural transformation accompanies managers on this path and supports them in setting impulses that go beyond mere structural changes.
Cultural transformation: institutionalisation as the key to success
The fourth step of the KIROI approach is primarily about anchoring the change. It is not enough to implement measures in the short term; framework conditions must be created that integrate cultural change into everyday life. Companies from a wide range of industries report that this is often achieved by adapting structures and processes. For example, a production company from the automotive industry has sustainably improved cross-team collaboration through new communication channels and an improved feedback system. A medium-sized technology company had similar experiences, adapting its appraisal and reward systems to the new values. A large service company also demonstrated the importance of continuous support for a lively cultural transformation through leadership initiatives and regular training sessions.
BEST PRACTICE with one customer (name hidden due to NDA contract) In the fourth step, a cultural compass was introduced at an international financial services provider. This supports employees in making daily decisions in line with the new values. Accompanying coaching helped to make the change visible and comprehensible. The result: the cultural change became tangible at all levels and continues to accompany everyday working life.
Practical tips for decision-makers on mastering cultural transformation
To ensure that the cultural transformation is successful in the long term, those responsible should pay attention to the following aspects:
- The involvement of all hierarchical levels is essential. For example, a manufacturer of consumer goods can ensure that each level understands what behavioural changes are expected by cascading cultural objectives.
- Continuous feedback is essential. The experience of a healthcare company shows how resistance can be identified and addressed at an early stage. This increases acceptance and enables adjustments to be made in the transformation process.
- Small interventions, so-called culture hacks, support the reinforcement of desired behaviours. Software companies, for example, use such impulses to keep cultural changes alive, for example through playful challenges or impulse lectures.
The contribution of managers to cultural transformation
Decision-makers play a central role when it comes to successfully supporting cultural transformation. Managers are not only role models, but also active drivers of change. A company from the service sector illustrates how visible leadership and continuous training programmes promote cultural change. Decision-makers should therefore have the courage to promote open communication and exemplify new values themselves.
Examples such as Bosch show how a traditional corporate culture can be reorganised through courageous leadership: Processes were streamlined, new speeds of innovation were made possible and at the same time a trusting cooperation was established. Netflix provided similar impetus with its culture of freedom and responsibility, which places great emphasis on personal responsibility and trust. Both companies clearly illustrate that cultural transformation must be deeply rooted in corporate management in order to have a lasting effect.
Cultural adaptations in various industries
The implementation of cultural transformation depends heavily on the industry; however, patterns can be recognised across industries. In the healthcare sector, for example, the focus is often on increasing openness and the willingness to provide feedback in order to empower patients and employees alike. Technology companies are increasingly focussing on agile methods and collaborative teamwork to improve their ability to innovate. And in the financial sector, the focus is often on establishing transparency and ethical guidelines in order to strengthen trust both internally and externally.
The various examples show that cultural transformation must always be a customised process. Standard solutions are rarely sufficient, as every organisation has different values, histories and challenges. Decision-makers are therefore well advised to understand cultural transformation as an accompanied, iterative process in which adjustments are made on an ongoing basis and employees are actively involved.
My analysis
The cultural transformation as part of KIROI step 4 clearly shows that sustainable change is more than a one-off change. Decision-makers must not only initiate change, but above all consolidate and institutionalise it. Without sustainable anchoring, there is a risk of falling back into old patterns. The practical examples from various industries illustrate the importance of leadership, continuous support and adaptive structures. Cultural transformation is not a sure-fire success, but a complex process that requires patience, clear strategies and participation. Decision-makers who approach this step with foresight give their company the chance to position itself successfully and sustainably in the long term.
Further links from the text above:
Successful cultural transformation for companies [1]
Mastering cultural transformation: KIROI step 4 put to the test [4]
Corporate culture: Top 3 examples of strong organisations [2]
Cultural transformation - 4 steps and 4 networks [3]
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