Often a company's strategy (imposed from above) is at odds with the deep-rooted habits of the corporate culture. Organizations underestimate how much the effectiveness of a strategy depends on the corporate culture.
A strategy that is at odds with the corporate culture is doomed to fail. Culture trumps strategy. Always.
Five principles for culture change.
1. link strategy to culture
Managers, CEOs, and team leaders have often struggled with cultural intransigence for years without ever fully focusing on the question: Why do we want to change our culture? They do not clearly link their desired culture to their strategy and business objectives.
It was not uncommon for me to be presented with a whole laundry list of desirable (cultural) characteristics: collaborative, innovative, risk-taking, quality-oriented, and so on. Core values, brand values, all very important. But when it comes to cultural values, it has to resonate with people and match the strategy.
Cultural values should say something about how you would like to behave as a company. In interaction with customer and colleague. And 'working together' is too vague. You can't work with everyone all the time every day, and that cooperation in itself is necessary to achieve something is obvious. In short: the list is often too long and the items too vague to address. On a culture level.
Make it sharp. Choose. Link the set to your goals. And communicate.
2. focus on a few behavioral changes
People don't want change. We prefer not to change our behavior, even in the face of overwhelming evidence that we should. Change is difficult.
Pick your battles.
Where do you start? First, observe the behavior that prevails and imagine how people would act if your company were at its best. Especially if their behavior would support business objectives. Ask executives and managers, 'If we had the corporate culture that we collectively aspire to, what kinds of new behaviors would come with it? And to what extent are they in line with the strategy we have chosen? And what kind of behavior would then disappear? '
3. honor the strengths of the existing culture
It's tempting to dwell on the negative traits of your culture, but every corporate culture is also a product of good intentions. The culture is constantly changing and evolving in unexpected ways. There are good things in that too. If there are relevant (active) behaviors that illustrate that people believe in them, they can still serve the company. Acknowledging the positives of the existing culture will also make major changes feel less top-down imposed.
4. Integrate informal interventions
While promoting new behaviors that make people aware of how they affect the company's strategic performance, formal approaches – such as new rules, practices and processes – must be integrated with informal interactions.
This is really a prerequisite for success. No escape.
In culture interventions, most business leaders prefer the formal, commercial parts and ignore the informal, more emotional side of the organization. So that doesn't work. They adjust authorities, roles, processes and IT systems, but overlook informal mechanisms such as: networks, interest groups, party committees, peer discussions, rituals and 'the corridor'.
5. monitor cultural evolution
Finally, it is essential to measure and track cultural progress at each stage of the desired cultural change. Evaluations should focus on: business performance, new behaviors, milestones (don't forget to celebrate them!) and underlying beliefs. “Measurements” enable executives to recognize setbacks, adjust course where necessary, and collect tangible evidence of improvement.
Culture always exists between people. People are constantly on the move and cause change themselves. Every change has an impact. Culture is a temporary landing place in the midst of changes and systems. The current culture provides tools and information about the meaning that people and teams collectively give to things and events. Analyzing and understanding culture is necessary to initiate positive change. Insight and clarity as the basis for change.
Want to know more about culture, change and leadership? I'll be happy to help you.