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

6 October 2024

Mastering cultural transformation: KIROI step 4 for decision-makers

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Cultural transformation is a key factor in the sustainable development of organisations. Many decision-makers are faced with the challenge of successfully accompanying this complex change process. KIROI Step 4 offers important impulses and recommendations for action to systematically master cultural transformation and initiate effective long-term changes.

Cultural transformation: key aspects for decision-makers

Cultural transformation involves far more than superficial adjustments. It aims to profoundly change values, beliefs and behaviours. Decision-makers must therefore pay particular attention to ensuring that these changes are supported by the entire organisation. Only then will the new culture come to life and the transformation process succeed in the long term. It is helpful to divide the cultural transformation into clearly structured steps and actively involve everyone involved.

An example from the automotive industry shows how a traditional company established new agile working methods under close management and was thus able to react more quickly to market requirements. In this case, the cultural promotion was aimed at giving the teams more personal responsibility and avoiding unnecessary planning phases - similar to Bosch. The management ensured trust and commitment from all employees through transparent communication.

The importance of a value-based transformation can also be seen in mechanical engineering: a medium-sized company with around 300 employees had long struggled with silo-like departmental thinking and demotivation. A targeted cultural transformation significantly improved internal communication. Employees felt more involved, which noticeably optimised collaboration.

Finally, an example from the IT sector illustrates how the integration of agile principles can establish a more open and innovation-promoting culture. There, an awareness of cooperation and faster learning was created step by step, which favours new products and services.

KIROI step 4: Successful implementation of cultural transformation

The fourth step in the KIROI model is the implementation and stabilisation of the cultural transformation. Here it is important to embed the previously defined values and behaviours in everyday life. Decision-makers should consider the following aspects:

  • Transparent communication: Open dialogue creates understanding and strengthens trust.
  • Management development: Managers exemplify the desired culture and support employees through targeted development.
  • Participation: Actively involve employees in change processes so that they take responsibility.

A practical example from the logistics sector shows how a company supported the transformation through targeted management training and regular feedback cycles. Employees often report that this support gives them confidence in dealing with change and increases motivation.

Another use case is an international service company that was able to significantly increase its innovative strength by establishing cross-functional teams and agile working methods. The cultural transformation was actively driven forward by the management and accompanied by continuous performance measurement.

KIROI Step 4 also helped to make the new culture measurable in the media industry. Employee surveys and benchmarks were used to make cultural development transparent. This enabled targeted measures to be adapted and successes to be visualised.

BEST PRACTICE with one customer (name hidden due to NDA contract)

BEST PRACTICE with one customer (name hidden due to NDA contract) showed how important continuous support is during cultural transformation. Accompanying coaching provided managers with technical and emotional support in critical phases of their change. This helped to overcome resistance and significantly increased acceptance of new values. The teams reported that the open dialogue and reflection during the coaching process helped to break down barriers and develop effective solutions together.

Practical tips for decision-makers in cultural change

In order for cultural transformation to succeed, managers should consider the following impulses:

  • Start with an in-depth analysis of the current corporate culture to uncover blind spots.
  • Formulate clear values linked to the corporate strategy that guide behaviour and cooperation.
  • Use transparent communication channels at all levels to make changes understandable.
  • Encourage respectful dialogue between employees and managers to increase motivation and commitment.
  • Embed learning processes and reflection formats to ensure that cultural change is sustainable.

These recommendations are practical and help to address common challenges in cultural change, such as resistance or communication deficits.

My analysis

Cultural transformation is a demanding process that requires a clear concept, targeted implementation and continuous support. KIROI Step 4 provides valuable guidance for decision-makers who do not want to leave cultural change to chance. Examples from different industries make it clear that it is important to anchor new values and actively involve everyone involved. This is the only way to create agile, innovative and sustainable organisations.

Further links from the text above:

Successful cultural transformation for companies [1]

Corporate culture: Top 3 examples of strong organisations [2]

Cultural transformation - 4 steps and 4 networks [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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#Agility #BigData #ChangeManagement #compliance #Data intelligence #Ethical guidelines 1TP5Management development 1TP5InnovationThroughMindfulness #Cultural transformation #artificial intelligence #Sustainability #SmartData 1TP5Corporate culture #Chains of responsibility

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