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Today's managers face a key challenge: they have to lead their organisations through far-reaching changes. Cultural transformation is far more than a superficial adjustment. It concerns values, beliefs and behaviours that form the foundation of a company[1][3]. KIROI Step 4 offers a structured approach to this. It shows how managers can not only initiate change processes, but also exemplify them themselves and anchor them sustainably.
Why cultural transformation is essential for leaders
The world of corporate management has changed. Markets have become more volatile and employees expect more than just a salary. They are looking for meaning, appreciation and transparent communication[2]. This is where cultural transformation comes in. It creates the basis for innovation, agility and genuine collaboration[1]. But cultural transformation cannot work without committed leaders.
Managers play a key role in shaping the new culture through their behaviour. They are the role models that teams look to. This is just as true in medium-sized companies as it is in large corporations. A managing director of a personnel service reports: His teams were initially sceptical about new values. It was only when the management level set an authentic example that the employees opened up to the cultural transformation.
The four dimensions of a successful cultural transformation
A genuine cultural transformation touches on four key areas. Firstly, beliefs and values. They form the invisible framework of every organisation. Secondly, the structures and processes. These must support the new values and not sabotage them. Thirdly, the routines and rituals. They make the culture tangible on a daily basis. Fourthly, the people themselves. They must understand why the cultural transformation is necessary and what benefits it brings[3].
This can be seen succinctly in a technology company. The management wanted to establish a culture of personal responsibility. They not only changed words and mission statements. They also adapted decision-making processes. Who was allowed to participate? Everyone who was affected. The result: innovation increased by 30 per cent because people really felt responsible.
KIROI step 4: Bringing culture to life through leadership
The fourth step of the KIROI model focuses on something crucial: the active implementation and anchoring of the new culture. Managers do not just shape it in theory. They make the culture visible and alive in their daily actions[2]. This is much more challenging than writing a mission statement.
Cultural transformation through daily rituals and behaviours
How does this work in practice? A bank branch introduced weekly appreciation sessions. Each person was allowed to praise another person for something specific. At first it seemed artificial. But after three months, communication had changed. People listened to each other. They recognised achievements. The new culture of mutual appreciation was suddenly tangible[2].
An automotive supplier has had similar experiences. Its division managers introduced short team meetings according to a new scheme. Decisions were made jointly instead of being imposed top-down. These daily rituals were the anchor point of the cultural transformation[2]. They kept the awareness of change alive.
Another example comes from the logistics sector. A logistics company wanted to establish a safety culture. Instead of penalties for rule violations, learning sessions were introduced. They spoke openly about mistakes and their causes. That was a radical cultural change. And it worked because leaders lived it every day.
Mission statements and manuals change little without this lived dimension. They are important, but not enough. People learn through observation. They see how a manager deals with criticism. They experience whether values really count or are just decoration.
Cultural transformation: the role of emotional intelligence
An underestimated success factor is the emotional intelligence of managers[2]. It forms the basis for building trust and authentic communication. A project manager in a consulting firm reports: When he learnt to perceive and regulate his own feelings, his team changed. People opened up more. They dared to admit mistakes. The cultural transformation became possible because the manager was emotionally present.
Emotional intelligence also means empathy. This means that managers need to understand what their employees are feeling. Fear of change, for example. Uncertainty about new requirements. Those who recognise this can provide more targeted support. A nursing manager in a hospital used this approach. She held individual discussions with each team member. She asked: What worries you? What do you see as positive? This empathy resulted in individual development plans. The cultural transformation was not something imposed, but something shared.
Fields of action for leaders in cultural transformation
Cultural transformation requires managers to take concrete measures. Four fields of action are central.
1. clarify vision and communicate authentically
Firstly, leaders must develop a clear understanding of which values should be strengthened in the future[2]. This is not a one-off process. It requires reflection and often external support through workshops or cultural assessments[2]. One industrial company took a full four weeks for this step. Teams from different departments discussed: What makes us unique? Which values are non-negotiable for us? This in-depth discussion was valuable. The resulting vision was not abstract, but filled with life.
This is followed by repeated communication. Not once, but many times. A managing director of a service company told us: In the first month, he repeated the new vision in almost every meeting. Some thought he was crazy. But after six months, most employees not only understood the vision. They were able to pass it on themselves. The cultural transformation had taken on a life of its own, so to speak.
2. make behavioural expectations clear
Values are sometimes too abstract. A value such as „customer focus“ can mean many things. That's why leaders need to concretise it: What does this mean in concrete terms in everyday life? One retail company did this with scenarios. They showed: A customer calls and is frustrated. What do we do? We listen instead of brushing them off. We look for solutions, not excuses. These concrete behavioural expectations made the cultural transformation tangible.
One financial services provider opted for a different format. It had managers and employees work together to determine which behaviours reflected the new values. This bottom-up method meant that people did not perceive the expectations as imposed. They were co-authors of their own cultural transformation.
3. reorganising structures and processes
Words alone are not enough. When the new culture demands agility, but the decision-making processes are hierarchical and slow, words and reality collide[1]. One media company experienced this. They propagated personal responsibility, but every decision had to be authorised one level higher. That was counterproductive. They changed the processes: Whoever had an idea was allowed to test it and decide quickly. After that, the cultural transformation suddenly made sense.
A craft business took a similar approach. It wanted a culture of continuous improvement. But its structures only allowed suggestions for improvement on a quarterly basis. Instead, it installed a system in which every employee could submit an idea every month and receive rapid feedback. The cultural transformation was measurable: the number of suggestions for improvement increased six-fold.
4. use agile practices
Cultural transformation is not a project with a clear beginning and end[2]. It is an iterative process. Leaders should therefore apply agile principles. This means: fast cycles, frequent feedback, continuous adaptation. One IT company introduced monthly reflection sessions. The team asked themselves: What works well in the new culture? What do we need to adapt? This open approach to cultural transformation made them resilient and lively.
Understanding and overcoming resistance
Every cultural transformation encounters resistance. That is normal. People cling to the familiar. Change means uncertainty. Intelligent leaders do not treat this resistance as an opponent, but as information[14].
An insurance company demonstrated this. They wanted to establish a culture of error. This provoked resistance: Older managers feared a loss of control. Younger managers were sceptical as to whether this was really meant seriously. Instead of ignoring the resistance, the management level asked: What is behind this? They listened. They modified the approach. This did not make the cultural transformation weaker, but stronger, because it addressed real concerns.
Coaching as a catalyst for cultural transformation
Cultural transformation does not succeed on its own. Managers need support. This is where coaching comes into play. It helps leaders to redefine their role. It strengthens their ability to take others with them[2].
BEST PRACTICE with a customer (name hidden due to NDA contract): A medium-sized service provider worked with us on its cultural transformation. The managers underwent an intensive coaching programme. They experienced for themselves what it is like to build trust and let go of control. At the same time, they reflected on their leadership styles. The first results were evident after six months: The working atmosphere improved measurably, employee loyalty increased and the sickness rate fell. The cultural transformation was driven from within, not imposed from outside. The coaching was the hinge that connected managers with their own development goals.
Individual and team coaching
Two coaching formats are particularly effective. Firstly, individual coaching. Here, a manager reflects on their strengths and areas for development[1]. They recognise the values for which they can act as a good role model. A head of a department in a publishing house benefited from this: During coaching, he became aware that although he verbalises responsibility, he quickly unconsciously controls it again when making decisions. He was able to work with this realisation in a targeted manner. His cultural transformation was more authentic.
Secondly, team coaching. Here, coaches support the management team in establishing a new culture together[1]. They work on mutual trust. They clarify how they can model the desired behaviours as a team. A management team from a housing company had this experience: during team coaching, they realised that conflicts between them were sabotaging the downward cultural transformation. Once they had clarified their relationships, the culture of the entire company became noticeably more open.
Building the nucleus of cultural transformation
A tried and tested approach is gradual implementation. You start with the management team and create a nucleus in which the new culture is modelled[1]. This nucleus then serves as inspiration for other parts of the company.
A large logistics group utilised this approach. They selected a pilot team with whom they worked intensively on cultural transformation. After a few months, this team became a role model. Other teams wanted similar processes. The cultural transformation spread organically, so to speak. This was much more effective than a top-down approach.
Measuring and adapting cultural transformation
How do you know whether cultural transformation is working? You need benchmarks. Regular measurement is essential. Many companies use employee surveys. They receive
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