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

24 September 2024

Mastering cultural transformation: KIROI step 4 for leaders

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Cultural transformation is a major challenge for many companies. Managers play a key role in complex change processes in particular. The focus here is on the fourth KIROI step, which emphasises the implementation and consolidation of the new culture. Managers support cultural transformation in a targeted manner by making values visible and actively exemplifying behaviours.

Cultural transformation: The role of managers in KIROI step 4

In the fourth step of the KIROI model, managers take on the responsibility of making the cultural transformation tangible in everyday life. This involves not only communication, but also consistent action and the conscious integration of the new values and principles into decision-making processes.

For example, managers use workshops in which they reflect together with their teams on how values affect their daily interactions. In the automotive industry, for example, division managers have introduced short, regular team meetings to dynamically support cultural change. These rituals strengthen awareness of change and promote employee commitment.

Another example is a medium-sized service company where targeted coaching helped managers to better fulfil their role model function. They reported a lasting improvement in the working atmosphere and increased personal responsibility within the team.

The importance of trust, transparency and personal responsibility in cultural transformation

In practice, leaders often find that building trust and transparency are the cornerstones of a successful cultural transformation. Managers support change processes by promoting open communication and empowering employees to take on more responsibility.

For example, IT companies report that regular appreciation sessions based on agile principles improve collaboration. Pharmaceutical companies also rely on transparent decision-making processes, which strengthen the credibility of management and make it easier to work together.

Such measures support the cultural change because they help to ensure that change is perceived as a joint project and that each individual is connected.

Practical tips for leaders on mastering cultural transformation

In order to successfully accompany cultural transformation, it is worth considering the following impulses:

  • Define clear values and link them to the corporate strategy. Managers in the financial sector thus establish common guidelines that can be easily understood in everyday life.
  • Communicate visions regularly and authentically, as is done in international retail companies, in order to strengthen awareness of cultural goals.
  • Iterative, agile approaches enable adjustments to be made during the process. Many technology start-ups use this approach to react flexibly to challenges.
  • Strengthen competences in the area of emotional intelligence. HR departments in manufacturing companies are therefore increasingly focussing on training courses that promote self-reflective skills.

BEST PRACTICE with one customer (name hidden due to NDA contract) The client from the mechanical engineering sector implemented KIROI step 4 through targeted management development. In workshops, the understanding of cultural values was sharpened and concrete behaviours were derived. The implementation was continuously monitored through regular feedback rounds, which made the cultural change visible and tangible throughout the entire company.

Challenges and solutions in real transformation projects

The implementation of cultural transformation is often hampered by old thought patterns and resistance. For example, managers from the healthcare sector report difficulties in breaking down hierarchical thinking and establishing new, participative ways of working.

This shows that continuous coaching and the creation of safe spaces for dialogue are helpful. Digital tools that create transparency and promote collaboration also help.

In retail companies, too, external consultants are brought in to provide new impetus and support internal development movements.

My analysis

The fourth step in the KIROI model is central to making cultural transformation lively and effective. Managers act as important multipliers and role models. They must not only communicate, but also actively exemplify their attitude and align it with the cultural goals.

Practical methods such as workshops, regular team rituals and coaching effectively support this process. The main challenges lie in overcoming old habits and promoting trust and transparency.

A successful cultural transformation strengthens the organisation's adaptability and promotes collegial cooperation. Managers who accompany this process make a decisive contribution to the sustainable development of their organisations.

Further links from the text above:

Cultural transformation - KIROI step 4 for managers [2]

Cultural transformation - 4 steps and 4 networks [1]

Successful cultural transformation for companies [3]

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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