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

18 October 2024

Mastering cultural transformation: KIROI step 4 for managers

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Today, cultural transformation is crucial for organisations that want to remain competitive in the long term. Managers are faced with the task of actively shaping values, behaviours and collaboration in order to create momentum for sustainable change. The KIROI model offers a structured framework for this that is tailored to the needs of the digital working world. The focus is on step 4, which specifically places responsibility on managers and shows how transformation can become a concrete success.

Understanding and shaping cultural transformation

Cultural transformation means breaking through existing patterns and establishing a new, sustainable culture. This process affects all levels of an organisation - from top management to the teams. It starts with the question of how previous behaviour is hindering success and what new values are needed to promote innovation, agility and collaboration[3]. There are numerous examples in SMEs in particular where rigid hierarchies, a lack of transparency or a lack of networking block innovation potential.

Managers often want to transfer more responsibility to teams, strengthen digital skills and embed agile methods. Questions about trust, communication and appreciation are typical, as these factors are crucial to the success of a cultural transformation[4]. However, real change can only succeed if the focus is not only on processes, but also on people. Transformation coaching helps companies to organise these processes individually and in line with their needs.

Examples from practice

In a mechanical engineering company, the management wanted to promote greater collaboration across departmental boundaries. Targeted coaching and the development of internal change agents helped to establish an open feedback culture that accelerated innovation.

A bank focused on cultural transformation in order to keep pace with digitalisation. Managers took part in workshops on agile leadership, creating space for experimentation and a culture of error.

In the automotive industry, a company introduced structured value dialogues to strengthen values such as respect and resilience. The teams worked together to develop new guiding principles that became visible in everyday working life.

KIROI step 4: Managers as initiators

The fourth step of the KIROI model focuses specifically on managers. They are crucial to the success of cultural transformation because they are role models, shapers and multipliers at the same time. Studies show this: When managers themselves take responsibility, a nucleus of the new culture is created that radiates to other areas[1]. It is important that they not only demonstrate how new values are lived in theory, but also in concrete behaviour. This requires a willingness to reflect, openness and the courage to give up old habits.

The focus is on integrating the new cultural elements into personal behaviour, decision-making and the company's processes. This means that managers should regularly take part in coaching sessions and further training to strengthen their role as role models. Individual coaching sessions help to clarify personal values and recognise blind spots. Team coaching sessions support the entire management team in developing a common understanding of the desired way of working together[1]. In just a few months, a group is created that is a model of the new culture and serves as inspiration for others.

Operational measures for success

Managers should actively involve their employees in the change process and regularly obtain feedback. Appreciative communication and honest dialogue are key to building trust and reducing resistance[4]. HR processes such as personnel selection, remuneration and promotion should be adapted to the new values so that they support the desired change[1]. It is important to note that the integration of new cultural elements only works in conjunction with awareness-raising, behavioural change and structural adjustments.

BEST PRACTICE with one customer (name hidden due to NDA contract) At an international logistics company, the cultural transformation was accompanied by the management team introducing monthly tours of the sites. They gave feedback, asked for suggestions for improvement and provided impetus for collaboration. The regular presence and genuine listening led to a noticeable change in the way we work together and to greater identification with the company. The open communication was perceived as a positive signal throughout the company, which accelerated the change process and significantly increased employee motivation. Transruption coaching supported the managers in actively shaping this new role and anchoring the changes sustainably.

Further impulses for practice

Managers can train multipliers in a cascade to pass on their knowledge to the teams. The principle of „those who teach, learn the most“ ensures that new content remains alive and that change competence in the company increases[1]. It is also advisable to carry out regular status reviews in order to visualise successes and recognise the need for adjustments at an early stage.

Another example: an industrial group specifically focussed on interdisciplinary project teams to drive innovation. The managers promoted exchange and knowledge transfer by creating formal and informal communication channels.

In the service sector, rituals such as the weekly town hall meeting were introduced to increase transparency and strengthen the „sense of unity“. This gave the teams regular opportunities to provide feedback and contribute their perspectives.

Opportunities and challenges of cultural transformation

A successful cultural transformation offers numerous opportunities: it increases adaptability, promotes innovation and enhances employees' identification with the company. At the same time, the process remains challenging because it requires time and patience[2]. Even if the first results are often visible after a few months, real change usually takes several years to become firmly established throughout the entire organisation[3].

Clients often report insecurities and resistance because old patterns are difficult to break. In traditional companies in particular, it is important to celebrate small successes and communicate success stories in order to maintain motivation. For managers, this means remaining consistent on the one hand, but also reacting flexibly to new developments on the other.

My analysis

Cultural transformation is not an abstract concept, but a living, continuous process that must be supported by everyone. Managers play a central role in this because they set an example of change and provide the impetus for sustainable change[1]. Transruption coaching provides companies with targeted support during this step by creating spaces for reflection, teaching methods and supporting learning processes. Experience shows: Those who see cultural transformation as a joint task create the basis for real change. The integration of new values, structures and behaviours remains one of the most important tasks for managers who want to make their organisations fit for the future.

Further links from the text above:

Cultural transformation - 4 steps and 4 networks - AGITANO

Conscious cultural transformation - Conscious Leadership Academy

The path to successful cultural transformation - andconsorten

Cultural transformation in the company - Dr Andrea Maria Bokler

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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