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

4 January 2025

Mastering cultural transformation: KIROI step 4 put to the test

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The Cultural transformation poses major challenges for companies, especially in the fourth step of an established process. In practice, it is clear how important it is to organise this phase carefully. This is because it is here that it is decided how the previously established measures will be sustainably anchored in everyday life. A successful cultural transformation not only harmonises values and behaviour, but also strengthens innovation and employee loyalty.

Cultural transformation: Focus on step 4

The fourth step of a typical cultural transformation process focuses on institutionalising the changes. This phase ensures that new ways of thinking and behavioural patterns become part of the corporate culture not just temporarily, but permanently. In practice, there are various important starting points for this.

It is therefore essential to review existing structures and processes and adapt them if necessary. A production company in the automotive industry reported that the integration of new communication channels and feedback systems has significantly strengthened cross-team collaboration. At the same time, a medium-sized technology company was able to achieve a stronger focus on shared values by adapting its appraisal and reward systems. Finally, a large corporation from the service sector also signalled the extent to which cultural transformation is already firmly established through visible leadership initiatives and continuous training programmes.

BEST PRACTICE with one customer (name hidden due to NDA contract) In the fourth step, an international financial services provider created a framework that makes cultural changes visible in day-to-day decisions. This was achieved through accompanying coaching and the introduction of a cultural compass that supports employees in navigating change and thus accompanies the transformation in the long term.

Practical implementation and challenges

A frequently reported issue in cultural transformations is the consistent integration of all hierarchical levels. A manufacturer of consumer goods has therefore introduced a cascading of cultural objectives. In this way, employees at all levels understand what behavioural changes are expected. Another example from the healthcare sector shows how important it is to recognise and tackle resistance at an early stage through continuous feedback and reflection. After all, cultural transformation is rarely a straightforward process, but requires patience and adaptability.

Furthermore, companies from the software industry report that the use of so-called culture hacks - small interventions to reinforce desired behaviours - can provide impetus to keep change alive. Fault tolerance and a willingness to learn are important success factors in modern teams.

Accompanying cultural transformation: Reliable support is key

The support of specialised coaching proves to be a great advantage in this step. Transruption coaching supports companies in driving their cultural projects forward methodically and with empathy. For example, an energy supplier was able to get different departments on board through regular workshops and open dialogue formats. An NGO also reported how external support helped to overcome communication barriers and develop a common language for the transformation. At the same time, a wholesaler reported that continuous coaching motivates managers to act as authentic role models for the new culture.

Sustainable impulses are more important than quick results. The focus is on understanding cultural transformation as a process that is constantly being developed and adapted. In this way, companies avoid the risk of measures falling back into old patterns.

Tips for successful implementation on the path to cultural transformation

In order to master cultural transformation in the fourth step, the following tried and tested actions are recommended:

  • Clear definition and communication of the new standards of behaviour at all levels.
  • Integration of cultural objectives into processes such as performance appraisals and promotions.
  • Strengthening managers as credible role models in times of change.
  • Regular support through coaching to reflect and anchor progress.
  • Encouraging open feedback and error-friendliness in order to stimulate learning processes.
  • Targeted use of culture-specific actions (culture hacks) to support desired behaviours.

Companies that implement these practices often report increased employee satisfaction and a stronger culture of innovation.

My analysis

Cultural transformation remains a complex process that requires careful planning and constant support. In the fourth step, the challenge is to permanently anchor the new and thus keep the change alive. Practical examples from a wide range of industries show that adapting structures, setting a clear example of values and accompanying coaching can support change. Cultural transformation is therefore less of a one-off project and more of a continuous development process that requires long-term impetus.

Further links from the text above:

Evaluation of methods for cultural transformation - OPUS

The path to successful cultural transformation - andconsorten

Corporate culture in practice | springerprofessional.de

How do I make cultural change measures a success?

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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