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

8 August 2024

Mastering cultural change: Step 4 to success with KIROI

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Today, cultural change is a key lever for companies that want to face new challenges and grow sustainably. Many organisations are realising that traditional approaches alone are not enough. Instead, a structured process is needed that systematically changes values, behaviours and beliefs. Cultural change is not achieved through superficial measures, but through a far-reaching transformation that involves managers, employees and processes in equal measure.

Cultural change: why it is necessary

Companies today face complex challenges. Market changes, new technologies and increasing expectations of collaboration require a flexible and open corporate culture. Cultural change supports organisations in becoming more agile and promoting innovation. Clients often report that they come to us with issues such as a lack of communication, a lack of motivation or resistance to change.

A practical example: A medium-sized mechanical engineering company was experiencing stagnating innovation rates and internal conflicts. Through targeted cultural change, the managers were able to introduce new communication formats and involve the team more closely. The result was a noticeable improvement in collaboration and an increase in creative solutions.

Another example: a global consumer goods manufacturer introduced regular feedback rounds and workshops. This created an open feedback culture that strengthened trust and increased employee loyalty. A service company also benefited by providing managers with targeted coaching and developing shared values.

Cultural change with KIROI Step 4

KIROI Step 4 is a proven approach for systematically driving cultural change. It relies on the active role of managers as role models and multipliers. They are not just implementers, but shapers of the new culture. Targeted measures such as coaching, workshops and regular reflection help to anchor new values and behaviours.

An example: In a large service company, KIROI Step 4 was used to strengthen managers as drivers of cultural change. The combination of individual support and collective reflection led to greater acceptance of the new leadership principles. Employees reported greater transparency and stronger identification with the company's goals.

Another example: A global consumer goods manufacturer only really began its transformation when the management team learnt to communicate constructive feedback openly. This led to a noticeable culture of trust and greater commitment. A medium-sized mechanical engineering company also benefited by establishing regular team meetings and feedback sessions.

Cultural change: practical steps

A clear plan is recommended for successful cultural change. First, the existing culture should be analysed. This includes surveys, interviews and the observation of work processes. A „target culture“ is then defined, which describes the desired values and behaviours.

Managers should act as role models and reflect on their own blind spots. Regular communication rounds and open meeting formats promote transparency and participation. New spaces and formats, such as retrospectives or check-ins/check-outs at team meetings, facilitate change in everyday life.

One example: A service company introduced regular retrospectives to review the progress of the cultural change. Employees were able to provide feedback and develop solutions together. Another example: a global consumer goods manufacturer established „sponsors“ for the new culture who were directly linked to management. A medium-sized mechanical engineering company also benefited by making successes visible and boosting motivation.

My analysis

Cultural change is a complex process that requires time and continuous support. KIROI Step 4 shows how managers can act as active shapers and role models. The combination of individual support, collective reflection and new communication formats supports the sustainable anchoring of the desired culture. Companies that take this approach often report increased employee motivation and improved competitiveness.

Further links from the text above:

Successful cultural transformation for companies

KIROI step 4: Drive cultural transformation forward in a targeted manner

Cultural change: 6 effective steps to change corporate culture

Mastering organisational culture change: KIROI step 4 unveiled

Cultural change in companies: Your path to the future

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