Cultural transformation is a crucial process that helps companies to systematically and purposefully change their corporate culture. This change is crucial in order to remain competitive in a rapidly changing world and ensure long-term success. Advancing digitalisation and agile transformations are challenging organisations to realign their cultures to foster innovation and collaboration[2].
Why is cultural transformation important?
Companies that fail to adapt their culture risk being left behind in a dynamic market environment. A successful cultural transformation not only promotes adaptability, but also strengthens employee engagement and work performance[2]. Values and behaviours that are lived in the organisation are crucial for the long-term balance between organisational and interpersonal activities[2].
Analysing the current culture
The process of cultural transformation begins with analysing the current culture. This involves conducting a corporate culture audit to understand the existing values and behaviours[2]. This step is crucial in order to define the goals and values that should be closely linked to the company's strategic objectives[2].
BEST PRACTICE with one customer (name hidden due to NDA contract)A company from the technology sector carried out a comprehensive audit to understand its existing values and behaviours. This helped to set clear goals for the cultural transformation and actively involve employees in the process.
Implementation of the new culture
The implementation of the new culture requires the active involvement of managers and employees. They must understand the goals and value of the change and actively participate in it[2]. Good communication is the key to successful cultural transformation, as it promotes trust and cooperation within the team[5].
Cultural transformation in practice
An important aspect of cultural transformation is the adaptation of HR processes such as the selection of employees, remuneration and performance evaluation systems as well as promotion criteria[1]. These processes must be realigned in order to promote the desired values and competences within the company.
BEST PRACTICE with one customer (name hidden due to NDA contract)A company from the financial sector adapted its remuneration systems to focus more on teamwork and innovation. This led to a significant increase in employee satisfaction and innovation potential.
Managers as role models
Managers play a central role in cultural transformation. They must act as role models and actively exemplify the new values and behaviours[1]. Through individual and team coaching, managers can further develop their skills and reduce barriers that stand in the way of implementing the new culture[1].
BEST PRACTICE with one customer (name hidden due to NDA contract)A company in the healthcare sector implemented a comprehensive coaching programme for managers. This helped to establish a culture of open communication and respect, which had a positive impact on patient care.
Continuous customisation
A cultural transformation is not a one-off process, but requires continuous adjustments and reviews. Companies must be prepared to constantly reflect on and adapt their culture in order to meet changing market conditions[4].
My analysis
Overall, cultural transformation is a crucial step for companies to be successful in the long term. By actively involving managers and employees and continuously adapting the corporate culture, organisations can increase their competitiveness and adapt to changing market conditions.
Further links from the text above:
For more information on cultural transformation, you can consult the following sources:
– Cultural transformation - 4 steps and 4 networks
– Mastering cultural transformation: KIROI step 4 to success
– Conscious cultural transformation
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