Why Culture Change Fails

By David Saxe, BBA, CPA. CA, CBC  – Business Performance Specialist

More than half the companies surveyed by the human capital research firm I4CP had r ecently or are currently undergoing a major cultural change. Yet only 1 in 25 said this change was highly successful. This is not the glowing report we want to hear from companies trying to improve their organizational culture. Anything less than highly successful just won’t do if you want to take your business to the next level.

So what are the top four reasons companies give for determining that a cultural improvement is necessary:

  • Little or no cohesive organizational culture exists to begin with
  • The culture has developed its own characteristics with no direction from the top
  • The need to prepare for anticipated customer or market shifts
  • The desire to re-invent (i.e. disrupt) themselves

All four reasons point to the need for dramatic change in the way organizations add value to their customers. Yet, if the majority of companies in the survey recognize the persuasive need for significant change, why is the success rate so low? Maybe it’s not so much in what they did, but rather in what they didn’t do.

To launch a strategic plan, you must first clearly define what winning will look like.  Then you need to explain why you need to make the change. Next you need to lay out how you will get there. The final step it to define the vision of how everyone will benefit when you successfully achieve the plan.

Transforming culture requires the same process. However, of those undergoing a cultural make-over, only about half those companies engaged in these critical steps:

  • Clear communication about why the cultural change was necessary: 51.4%
  • Clarity from senior leadership on the behavioral changes needed to drive and sustain the desired culture: 53.7%
  • CEO/owner commitment to provide the time and resources for a successful transformation: 52.8%

Yet, as important as these steps are, they are only the beginning. As with a strategic plan, follow-through is just as important, if not more so.

Next Level Business Planning specializes in improving organizational culture.  We have the tools, experience and track record to help your organization create a strong and healthy culture that positively reflects the customer experience your customers are looking for. Don’t hesitate to contact us so we can help you take YOUR business to the “Next Level.”

  David Saxe, BBA, CPA, CA, CBC

  Authorized Partner – The Five Behaviors of a Cohesive Team™

  Certified Ownership Thinking™ Facilitator

  Base-camp Trained EOS™ Implementer

  Business Performance Specialist

David has over 40 years of hands on business experience and is the Chief Coaching Officer at Next Level Business Planning.  The firm provides leadership teams with the tools, training and skills to build high performance, productive teams within their business organizations.  David has a passion for working with leadership teams to help them create a laser-focused vision and provide the tools, training and traction to achieve that vision.   He also helps to create a culture of engagement and accountability to maximize efficiency and profitability by training employees to think and act like owners.  David can be reached at david@nextlevelbusinessplanning.com.