The Crucial Role of Cultural Transformation

For transformation to take place, we first need to acknowledge the need for change. So it is encouraging to see that 90% of our survey respondents recognize the need for cultural transformation. Interestingly, around 60% have already defined a target culture, which is a good first step and suggests that their main challenge will be its implementation. At the same time, 40% have yet to work out what their target culture will look like. This number shows that almost half of the industry is in the process of reinventing their cultural DNA.

Admittedly, it is difficult to identify a target culture. So let us briefly define it here: Organizational culture is basically “the way things are done around here”, which differs from company to company. It is a company’s distinctive, individual personality, molded into shape over decades by leadership behaviors and core beliefs. This is why change must be individually tailored to fit each company’s unique purpose and personality, match employees’ beliefs, and be lived and breathed by the top management.

Are we really ready?

So now that leaders are aware of the need for cultural change, how do companies make true change happen? Encouragingly, the majority of top executives are excited about cultural transformation in their own organizations (80% of the respondents). Only nine percent feel worried about it. They consider, however, that middle managers are more uncertain about the changes ahead (11% are neutral). One respondent, for example, speaks of the need to “convince the team that change isn’t a threat but an opportunity”. It is therefore essential to create an open environment where all employees feel free to speak up and be heard, whether they are for or against change.

The inherent positivity expressed in the survey means that leaders should be able to radiate excitement throughout their respective organizations and overcome potential middle management reticence in a positive and inclusive way. Healthy skepticism should be included and viewed as enriching, not prohibitive.