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

8 November 2024

Mastering cultural transformation: KIROI step 4 for managers

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Cultural transformation is a decisive step for many companies in order to remain competitive in the long term and to be able to react to constant market changes. Managers in particular are in demand during this phase, as they play a key role in guiding and steering change as role models and shapers. This article focuses on KIROI step 4, which specifically supports managers in effectively mastering cultural transformation.

Cultural transformation: Why managers need to accompany change

Cultural transformation involves a profound change in values, norms and behaviour within the company. Managers play a central role because they have to set a good example and credibly exemplify the new culture. Decisive impetus, trust and orientation are created primarily through their leadership skills. In this way, they promote an atmosphere in which open communication and collaboration are possible and innovations can flourish.

An example from the automotive industry shows how important leadership is when it comes to cultural change: there, an agile and adaptive team language was established through the consistent role model function of managers, which made processes much faster and more efficient. In medium-sized companies in the mechanical engineering industry, companies reported significantly better employee retention because managers deliberately allowed room for further development and a culture of error. Managers in the IT sector also supported the cultural change with targeted team coaching sessions by strengthening collaborative values and reducing hierarchies.

KIROI step 4: Position managers as cultural drivers

The fourth step in the KIROI process requires managers to see themselves as active drivers of cultural transformation. This involves empowering them through individual coaching and team processes to remove obstacles and lead in a value-orientated manner. Freedom of action and navigation through uncertainties thus become realistically controllable.

In the energy sector, for example, managers were specifically trained to promote open feedback and a constructive error culture. This significantly increased the ability to innovate. Another example from the healthcare sector shows how systematic team coaching helped to reduce leadership barriers and restore trust among colleagues. In a service company, managers succeed in bringing the desired culture to life by acting as role models and engaging in continuous dialogue.

BEST PRACTICE with one customer (name hidden due to NDA contract) In a medium-sized technology group, step 4 was used to coach a management team intensively in dealing with new agile methods and value-orientated communication. As a result, the teams showed a significant increase in initiative and personal responsibility, which significantly advanced the cultural change.

Practical tips for managers on cultural transformation

There are a number of tried and tested approaches and methods that can help managers successfully support cultural transformation:

  • Actively organise communication: Managers should provide transparent information about the goals and intermediate stages of change and create open feedback channels.
  • Act as a role model consistently: Exemplify values and desired behaviour in order to create credibility and inspire employees.
  • Use team coaching: Joint reflections and exercises ensure mutual understanding and strengthen cohesion.
  • Establish rituals and new habits: Regular meetings and recognising progress can set new cultural anchors.
  • Continuous further training: Managers should systematically expand their skills in dialogue-based leadership, conflict resolution and agile thinking.

The financial sector also shows how important it is to actively address all employees in order to sustainably anchor cultural transformation. In the construction industry, regular workshops lead to greater identification with the new values, while agile coaches form an important link between strategy and implementation in IT start-ups.

Recognising and supporting challenges

Cultural transformation is not a quick process. Typical challenges include resistance to change, uncertainty within the team and underlying fears. Managers should therefore listen empathetically and create access to motivation. Looking at systemic interrelationships helps to better understand processes and behavioural patterns and to make targeted changes. Exercises for self-reflection and openness to feedback have a supportive effect.

An example from the logistics sector illustrates how frustration can arise when processes remain unchanged despite cultural work. Here, readjustments were made by managers taking responsibility for finding solutions to obstacles. In the retail sector, successes were also deliberately made visible in order to create a positive dynamic. In the pharmaceutical industry, it was found that even small adjustments in daily communication had a major impact on the working atmosphere.

My analysis

Cultural transformation is an integrative, multi-layered process that is significantly shaped by managers. KIROI Step 4 ensures that they understand and actively fulfil their role as cultural drivers. Managers can thus accompany challenging phases, strengthen teams and bring about lasting change in the corporate culture. Companies that tackle this change strategically and support their managers effectively not only increase their innovative strength, but also the satisfaction and loyalty of their employees.

Further links from the text above:

Successful cultural transformation for companies

Corporate transformation: culture, processes & AI

Cultural change in companies: Your path to the future

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic Artificial intelligence here.

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#BigData #compliance #Data intelligence #Ethical guidelines 1TP5ManagersBalance 1TP5InnovationThroughMindfulness #KIROIStep4 #Cultural transformation #artificial intelligence #Sustainability #SmartData 1TP5Corporate culture #Chains of responsibility #ChangeShapes

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