Overhauling Culture: The Secret to Successful Change Initiatives

When a major change initiative runs aground, leaders often blame their company’s culture for pushing it off course. They try to forge ahead by overhauling the culture—a tactic that tends to fizzle, fail, or backfire. Most cultures are too well entrenched to be jettisoned. The secret is to stop fighting your culture—and to work with and within it, until it evolves in the right direction.

The Importance of Aligning Culture and Strategy

Today’s best-performing companies, such as Southwest Airlines, Apple, and the Four Seasons, understand this, say the authors, three consultants from Booz & Company. These organizations follow five principles for making the most of their cultures:

Principles for Working with Culture

1. Match Strategy to Culture

Culture trumps strategy every time, no matter how brilliant the plan, so the two need to be in alignment.

2. Focus on a Few Critical Shifts in Behavior

Wholesale change is hard; choose your battles wisely.

3. Honor the Strengths of the Existing Culture

Every culture is the product of good intentions and has strengths; put them to use.

4. Integrate Formal and Informal Interventions

Don’t just implement new rules and processes; identify “influencers” who can bring other employees along.

5. Measure and Monitor Cultural Evolution

Otherwise you can’t identify backsliding or correct course.

A Case Study: Aetna’s Successful Cultural Transformation

When the leaders of Aetna applied these rules while implementing a new strategy in the early 2000s, they reinvigorated the company’s ailing culture and restored employee pride. That shift was reflected in the business results, as Aetna went from a $300 million loss to a $1.7 billion gain.

Conclusion

By working with and within their culture, rather than trying to change it, leaders can create a more effective and sustainable organization. It’s a key lesson for any leader looking to drive lasting change in their company.

FAQs

Q: Why is it so difficult to change a company’s culture?
A: Because cultures are well-entrenched and have a strong emotional connection to employees, making it difficult to disrupt.

Q: How can I ensure that my company’s culture evolves in the right direction?
A: By aligning your culture with your strategy, focusing on a few critical shifts in behavior, honoring the strengths of your existing culture, integrating formal and informal interventions, and measuring and monitoring cultural evolution.

Q: What are some examples of companies that have successfully transformed their culture?
A: Companies such as Southwest Airlines, Apple, and the Four Seasons have all successfully transformed their cultures to drive business results.