The Link Between Change Management & Culture Change
Change is a constant in the modern workplace, whether it's adopting new technologies, restructuring teams, or launching new initiatives. But despite the varied nature of these changes, one thing remains constant: every successful change management effort is, at its core, a culture change.
Why Change Management is Always Culture Change
Culture is the invisible force that shapes how people think, feel, and behave in an organization. It's the set of shared values, beliefs, and practices that guide how work gets done. When you introduce any form of change—be it a new process, a different leadership style, or a shift in strategic direction—you are, by necessity, asking people to adjust their behavior and mindsets. This means you are asking them to change their culture.
Cultural Intelligence (CQ), the ability to relate to and work effectively across cultures, becomes crucial in this context. Organizations with high CQ are better equipped to navigate the complexities of culture change because they can recognize, respect, and adapt to diverse perspectives and behaviors.
The Role of Cultural Intelligence in Culture Change
Cultural Intelligence involves four key components:
CQ Drive: The motivation to learn and adapt in diverse settings.
CQ Knowledge: Understanding cultural differences and their impact on work.
CQ Strategy: The ability to plan for multicultural interactions.
CQ Action: The capability to adapt behavior to different cultural contexts.
Research has shown that organizations with higher levels of CQ are more successful in managing change. A study by Ang et al. (2007) found that CQ is a strong predictor of successful intercultural negotiations and leadership effectiveness. Similarly, a report by the Cultural Intelligence Center highlights that companies with high CQ are more likely to innovate and outperform competitors.
In the context of change management, CQ allows leaders to anticipate and address the cultural barriers that often derail change initiatives. It equips them with the tools to engage employees from diverse backgrounds, fostering a sense of inclusion and belonging that is critical for sustaining change.
A Personal Story
One of the most powerful examples of culture change comes from a client of Thriving Culture. The client, a large global nonprofit organization, was struggling with a significant shift in leadership and a new strategic direction that required the integration of multiple, diverse teams. The challenge was not just logistical but deeply cultural—each team brought its own set of values, communication styles, and working norms.
The organization’s leadership initially approached this change as a purely structural problem. They focused on merging systems and processes but overlooked the underlying cultural dynamics. As a result, resistance grew, morale plummeted, and the change initiative stalled.
Dr. Otaola introduced the concept of Cultural Intelligence to the leadership team, emphasizing that for the change to take hold, they needed to understand and address the cultural differences that were causing friction. Through a series of workshops, coaching sessions and facilitated collaborative conversations, the leaders learned to recognize and respect the diverse perspectives within their teams. They developed strategies to bridge cultural gaps, fostering an environment of trust and collaboration.
One pivotal moment came when a leader shared a story during a workshop about how her team, composed largely of employees from different cultural backgrounds, had struggled to communicate effectively during a critical project. Through the CQ training, she realized that what she had initially perceived as resistance was actually a difference in cultural communication styles. With this new understanding, she was able to adjust her approach, leading to a breakthrough in team collaboration.
This cultural shift didn’t happen overnight, but as the organization’s leaders continued to apply CQ principles, they began to see a transformation. The teams started working together more cohesively, and the change initiative gained the momentum it needed to succeed. This experience not only reinforced the importance of CQ in change management but also demonstrated how a deep understanding of culture can turn a struggling initiative into a success story.
What Board Members Should Know About Culture Change
Board members play a crucial role in steering an organization through change. While their responsibilities often focus on governance, oversight, and strategy, understanding the impact of culture on change initiatives is essential. Here’s what board members need to know:
Culture Change is a Strategic Imperative: Board members should recognize that culture is not a "soft" issue but a critical factor in the success of any change initiative. A misaligned culture can derail even the most well-planned strategies.
Ask the Right Questions: During board meetings, ensure that cultural considerations are on the agenda. Ask questions like: How will this change affect our organizational culture? What cultural barriers might we face? How are we planning to engage employees in this change?
Support the CEO and Leadership Team: Culture change starts at the top. Board members must ensure that the CEO and leadership team have the support, resources, and mandate to drive culture change. This includes backing efforts to invest in Cultural Intelligence development for leaders.
Monitor Culture Metrics: Just as the board tracks financial performance, it should also monitor cultural health. This includes reviewing employee engagement surveys, turnover rates, and other indicators of cultural alignment with organizational goals.
Champion Diversity and Inclusion: A diverse and inclusive culture is more adaptable and resilient. Board members should advocate for diversity and inclusion initiatives as part of the broader culture change strategy, ensuring the organization is equipped to thrive in a multicultural world.
Understand the Long-Term Commitment: Culture change is not a quick fix. Board members need to understand that it requires ongoing effort, patience, and persistence. It’s a long-term commitment that may take years to fully realize.
Align Culture with Risk Management: Board members are responsible for overseeing risk. A misaligned culture can pose significant risks to the organization, from compliance failures to reputational damage. Ensuring that the culture aligns with the organization’s risk management strategy is crucial.
Be Prepared to Adapt: The business environment is constantly evolving, and so too must the organization’s culture. Board members should be open to adapting their approach as new challenges and opportunities arise.
Set the Tone for Accountability: Board members should hold the leadership team accountable for culture change outcomes. This means setting clear expectations, tracking progress, and ensuring that cultural considerations are integrated into all major decisions.
Communicate the Importance of Culture: Board members have a platform to influence stakeholders across the organization. Use this influence to communicate the importance of culture and its role in achieving the organization’s mission and vision.
Ten Best Practices for Culture Change
Start with Leadership: Culture change begins at the top. Leaders must model the behaviors and values they want to see in the organization.
Communicate Clearly and Often: Transparent communication is vital. Employees need to understand the "why" behind the change and how it aligns with the organization’s mission and values.
Engage Employees at All Levels: Involve employees in the change process. This not only empowers them but also provides valuable insights into potential challenges and solutions.
Align Policies and Practices: Ensure that all policies, procedures, and reward systems reinforce the desired culture change.
Foster Trust: Trust is the foundation of a healthy culture. Build trust by being consistent, reliable, and transparent in your actions and decisions.
Provide Training and Development: Equip employees with the skills and knowledge they need to thrive in the new culture. This might include cultural intelligence training, leadership development, or technical skills training.
Measure and Monitor Progress: Regularly assess how the culture change is progressing. Use surveys, focus groups, and other tools to gather feedback and make adjustments as needed.
Celebrate Small Wins: Recognize and reward progress, no matter how small. Celebrating wins helps to build momentum and reinforce the desired changes.
Be Patient and Persistent: Culture change takes time. Be patient but persistent, and don’t be discouraged by setbacks.
Adapt and Evolve: Culture is not static. Be prepared to adapt and evolve your approach as the organization grows and changes.
The Connection Between Culture Change and Workplace Trust
Trust is both a precursor to and a result of successful culture change. According to a study by the Edelman Trust Barometer, employees who trust their leaders are more likely to embrace change and contribute to a positive workplace culture. Conversely, a lack of trust can lead to resistance, disengagement, and ultimately, the failure of change initiatives.
Building trust during culture change involves consistent communication, demonstrating empathy, and delivering on promises. When employees trust that their leaders have their best interests at heart, they are more likely to support and actively participate in the change process.
Let’s Do This Together
Culture change is a complex and challenging process, but it is essential for any successful change management initiative. By understanding the deep connection between culture and change, and by leveraging Cultural Intelligence, you can create a resilient, adaptive, and high-performing organization.
If you’re ready to embark on a culture change journey or need support with your change management efforts, Thriving Culture is here to help. Our team of experts specializes in guiding organizations through the complexities of culture change, using proven frameworks and research-backed strategies. Contact us today to learn how we can collaborate to transform your organization and achieve lasting success.
