I recently hosted a workshop on the importance of culture to the success of organisational transformation. A summary of the seminar is reflected below:
Most companies go through transformation projects without sufficient understanding of their goals, landscape and people. Without a strong foundation in these environmental factors, they risk being fatally underprepared. Even many that do prepare, take a largely “structural” approach to organisational change.
Change, however, is not really a project. It is a constant and is ever present. It is also increasingly rapid. How “fit” is your company to weather that?
Another constant in our working life that is often ignored or relegated to some subfunction of HR, is organisational culture.
If structure is the body and blood of an organisation, culture is the head and the neural network. Yet, many organisations are prepared to invest heavily in structural change like new technology, new organisational charts, new offices , mergers and acquisitions, even in internal communications, all without a similar or commensurate investment in their organisation’s culture, its people and its leadership quality. Recent studies have highlighted culture as the number one reason for failure of 83% of mergers and acquisitions whilst other research has shown that it is also the key success differentiator in the vast majority of “transformation projects”.
There are, of course, exceptions. These companies, those who have grasped the importance, are now reaping the benefits and leaving their more monolithic competitors in the dust. They will attract the best people, manage and leverage their knowledge better, increase their productivity and reduce attrition (both in terms of turnover and in terms of despondency).
Regardless of the industry you are in, the evidence base is growing that clearly shows the return on investment of a thorough organisational diagnostic that looks at all aspects of culture in transformation, from risk appetite to change readiness to competitive advantage.
Culture is your collective expression, and it can also be your brand’s calling card. Do not demote it to a set of “people policies” in the human resources department, and a hollow “mission, vision and values” statement that is not lived at every level of your organisation at every moment. It is your best commercial weapon in a rapidly changing world. Get the right people in to review, diagnose and analyse your organisation’s overall strategy and goals, and set your culture and values at the heart of your transformation.
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