Keys That Drive Successful Cultural Transformation

In an era where technology dominates the workplace, you either culturally adapt to changing times—or you get left behind. Cultural transformation and digital transformation go hand in hand when developing a framework for advancing the productivity and reach of your business. Too often, business leaders will push for digital growth without understanding the importance of backing it with cultural transformation. Unfortunately, this series of events can lead to frustration, lack of communication, and overall negative performance. Having a strong corporate culture helps retain employees, boost productivity, and attract top tier talent. The new digital revolution must first be led by cultural transformation with HR as a key facilitator. 

“It is tough when markets change, and the people within your company don’t.” - Harvard Business Review 

The Importance of Cultural Transformation 

We live in a world where we are constantly meeting new people and exchanging ideas. With this, comes the necessity of accepting others’ culture and opinions. Cultural transformation is the process in which a shift in ideology occurs, either in an individual, a team, or even a whole organization. It is important because to maximize the value we bring to a community; we must recognize our piece as a part of the bigger pie. Cultural transformation is an essential tool for all businesses to move forward in the working world. 

This past week I had the pleasure of sitting down with Max Shkud, Head of Learning at Microsoft Silicon Valley. He walked me through understanding the basics of cultural transformation within a workplace, how to set yourself up for success in HR, as well as some thoughts about the coronavirus and opportunities for people working towards creating cultural change in the workplace. I am excited to share with you his tips and tricks and hopefully challenge you to think critically about your role in the organization moving forward. 

The Digital Movement Revolution

With changing times, the majority of the emerging world is pushing to become more technologically literate. Technology, more than anything, is a tool that can be used to foundationally set up your business, making it adaptable, easier to communicate within, and even easier to participate in international exchanges. The move to digital infrastructure is necessary to do business in the modern world. This need is rooted in human resources and stems up through the rest of the business. 

Understanding the Bigger Picture 

One of the key components in working towards a better corporate culture is to understand the overall objective and mission of the company. When you can put the company’s needs above yours, you become a better team player. You and fellow peers can set aside personal objectives and focus on the bigger goal. Max talks about how for years the “business side” and “HR side” of a company have been seen as two different sides. To move forward and be truly transformed, all aspects of a business must come together and understand their position in the bigger picture. 

For years, “business side” and “HR side” of a company have been seen as two different sides. To move forward and be truly transformed, all aspects of a business must come together and understand their position in the bigger picture. - Max Shkud, Head of Learning at Microsoft Silicon Valley.

Examples of Cultural Shifts

Culture is dictated by a set strategic direction established by leadership within an organization. This is why it is so important that every single tier of the corporate structure can understand their role within the business, as well as what the objectives or goals of the business at large are. Max references the example of leadership at Microsoft where initially under Bill Gates and then later Steve Balmer, the culture of the company was completely different. He emphasizes the importance of social awareness—what might have worked for businesses ten or even five years ago may no longer be relevant. It is important to stay informed about cultural norms and find ways to implement them into your organization. 

Strategies for Transformation

The best way to integrate processes for cultural transformation within a workplace is by designing a specific strategy that is tailored to your business. Digital transformation and cultural transformation are by no means a “one size fits all.” Each company, and even divisions within an organization, must develop its strategy for digital integration.

One potential strategy for brainstorming what this looks like is having members from a company sit down and discuss what their priorities and objectives are

Follow this up by asking why these priorities mean so much to them. Are you able to find common ground between employees? Use this to structure how you want developmental digital change to be executed within your organization. 

Another potential way to gain a better understanding of where people within your corporation stand is by sending out a survey

In the survey, including questions about the company, questions about what employees think their role within the company is, and potential places where employees think there can be an improvement. In the analysis of the survey, you will most likely find common trends or patterns due to miscommunication. This can be a useful tool to refer to when assigning tasks. It can also help determine what values and culture the people within an organization seek. Use this to evaluate strengths and weaknesses in your corporate culture.  

Having a small focus group can be an additional way to evaluate some of the same metrics

Following this, create a cross-functional task force that is assigned to facilitate cultural transformation. In this task force include representatives from HR, leadership, and all parts of the organization. Having a diverse group of people will help break out from the “one size fits all” model. 

Cultural transformation occurs both in and outside the office. To effectively transform you not only have to re-educate your employees but also your partners and other stakeholders. While creating structures and processes is crucial, so is the people's side. Get to know your organization's stakeholders (employees and partners alike) on a deeper level. Getting their buy-in is an important step in reaching your cultural and digital transformation goals.

A great way to get better insights into your organization's culture is through the eyes of your customer

More and more, customers want to buy from companies they believe are innovators. Customers often will be able to provide an unbiased viewpoint on how your innovation efforts (or lack thereof are being perceived). The customer's perception will help you not only improve your innovation and transformation processes but will help you better understand how to communicate your progress publicly.

Resolving Cultural Conflict 

Reconciling cultural differences is often about “ego” as Max puts it. Often, when there is a cultural conflict it has very little to do with the actual culture itself but rather a clash of people who want to be right. In addressing how to move forward from situations like this, once again remember the bigger picture and the strategic direction of the company. When we learn to put our egos behind us, we face a more productive and reasonable conversation, which is always beneficial to all parties involved in the long run. 

Summary: Importance of Cultural Transformation

To wrap it all up, whether an organization is as large as Microsoft or as small as just a start-up with a few people, cultural and digital transformation play an important role in driving success. Using strategies to digitize and culturally adapt to your business will help you move forward and outplay competitors. It all starts with being aware and understanding your underlying purpose within an organization.

If your company is interested in a workshop to learn the culture for disruptive innovation and agility, reach out to us here. Best of luck and keep us updated @10XInnovationLab with your journey!