16.Align Your Change Strategy with Your Organization’s Culture: A Pathway to Sustainable Success

To understand organizational culture, envision yourself as a tourist (employee) in a new country (organization). As you step into this vibrant workplace, you encounter its unique values, traditions, and ways of doing things. Sometimes, you effortlessly find your place; other times, it feels like navigating an unfamiliar land. This journey illustrates how culture can powerfully influence your performance, whether uplifting or challenging. In essence, organizational culture embodies the values, attitudes, beliefs, and behaviours that shape a company’s work environment.

Culture is often the secret ingredient that propels a company above the competition. Yet, do we fully recognize its vital role in implementing meaningful change, whether on a company-wide scale or an individual journey?

Why is it essential to align your change strategy with your organizational culture?

A McKinsey study reveals that approximately 70% of transformation initiatives fail, with a significant portion of these failures attributed to cultural issues. Research from Harvard highlights that a primary reason change management strategies fail is the mismatch between a company’s culture and strategy. By understanding organizational culture, leaders can identify obstacles and leverage their strengths during change.

If a change initiative does not align with the organization’s existing culture, it faces significant challenges. Employees may only accept the change if they believe the organization’s commitment to supporting it in the long term. This lack of trust can serve as a barrier to success. Therefore, it is essential to realistically assess your organization’s culture and develop change management strategies based on that understanding.

The Power of Culture in Driving Change 

When used effectively, an organization’s culture’s strengths can significantly ease the implementation of change initiatives, such as digital transformation or new processes. A culture-driven approach allows employees to relate to changes quickly and reduces resistance.

To better understand culture, we can refer to the “Iceberg Model of Culture,” created by Edward T. Hall. Like an iceberg, much of a company’s culture exists beneath the surface. What is visible above the water—such as mission statements and strategies—is relatively easy to comprehend. However, below the surface lie norms, relationships, and unspoken rules that are more challenging to identify. These hidden elements often have the most significant impact on how changes are received.

**Organizational Cultural, It’s Assessment: Why It’s Vital**

A recent study found that 68% of executive teams assess their company culture to embrace the new normal of virtual and hybrid work environments. As organizations navigate rapid changes in their working methods, understanding culture’s visible and invisible elements becomes essential for leaders. There needs to be a right or wrong culture; it is crucial to discover how well it supports the transformative changes you wish to implement.

One powerful tool for this journey is the Organizational Culture Assessment Instrument (OCAI), grounded in the Competing Values Framework (CVF). This framework illuminates organizational culture by categorizing it into four major types:

1. **Collaborative or Clan Culture** – People-oriented
2. **Creative or Adhocracy Culture** – Innovation-oriented
3. **Controlled or Hierarchy Culture** – Process-oriented
4. **Competitive or Market Culture** – Achievement-oriented

These categories reveal deeper insights when analyzed through the lenses of internal-external orientation and stability-flexibility.

– **Internal orientation** highlights organizations focused on nurturing internal development, where collaboration is key.
– **External orientation** thrives on being market-driven, paying attention to the latest trends, customer preferences, and competitor benchmarking, leading to action plans inspired by the external environment.

Both attributes are vital for success, yet typically, one emerges as dominant based on the prevailing culture.

**Flexibility** champions adaptability to ever-changing circumstances, recognizing the invaluable role of people, while **stability** prioritizes structures, procedures, and plans that guide and control through these vital elements. Understanding your organization’s cultural leaning empowers you to craft a change strategy that resonates.

The OCAI evaluates these dimensions and examines organizational culture through the following six aspects:

1. Dominant characteristics
2. Leadership style
3. Employee management
4. Organizational glue
5. Strategic emphases
6. Success criteria

**Factors That Drive Change Success**

To achieve successful change, identify any cultural barriers within your organization. Understanding what works and what doesn’t empowers you to create a strategy that engages stakeholders, fosters clear communication, and equips employees with the necessary training to adapt.

Consider L’Oréal. They have nurtured a culture of innovation, enabling them to transition to a “Digital First” company successfully. This shift has empowered them to be agile and responsive to consumers’ evolving demands. How can you cultivate a similar environment in your organization? What cultural elements might be holding you back? These vital questions deserve your attention as you plan for change.

**Final Thoughts**

Organizational culture is a powerful force in the success of any change initiative. Understanding and aligning with your company’s culture will pave the way for a smoother, more successful transformation. Whether rolling out new technology or redefining team dynamics, remember the profound impact of culture in shaping your organization’s bright future.