Narrative of a value-based transformation of corporate culture using the example of a medium-sized company
In a constantly changing business world, corporate culture is a critical success factor. It shapes the behavior of employees, the quality of cooperation and ultimately the competitiveness of a company. But what happens if the existing culture no longer meets today’s requirements? In this article, you will find out how we initiated a value-based transformation at a client that drove cultural change with 270 employees within a year and a half. A practical insight into the transformative power of values and collaboration.
Initial situation: A corporate culture in transition
The mechanical engineering company in question, which we will call “Maschcom”, employs almost 300 people at several locations in Germany and one in the Czech Republic. Growth had been stagnating for several years and internal conflicts seemed to be blocking success. Employees seemed demotivated, communication was characterized by mistrust and departmental thinking dominated everyday life. These silos prevented effective collaboration between teams and made communication across different departments and hierarchical levels difficult. Although the company was aware of its challenges, it lacked clear approaches on how to initiate cultural change and improve internal dynamics.
Andreas M., a member of the management team for 5 months, approached us because he had read a blog article on corporate culture and felt that this was the key to some of their problems. He discussed the topic with his colleagues and together they decided that a realignment of the corporate culture should be tackled in order to restore employee motivation, promote innovation and ensure competitiveness. But what exactly should this cultural change look like? And how could employees be involved in this process?
The transformation process: step by step towards cultural change
Changing a corporate culture is a complex undertaking that requires time, patience and, above all, a clear strategy. Our approach was based on a value-based change, focusing on the values of the company and its employees. Values form the basis for the actions and decisions of the people in the company – which is why they are the key to sustainable cultural change.
1. analysis of the existing culture
The first step was to analyze the existing corporate culture. It was important for us to involve all employees in the process. A newly defined culture will only be lived if it is shaped and supported by all colleagues.
After a virtual kick-off, in which the management announced the background to the transformation process and the future strategic direction, everyone in the company received a link to the ValueParty. The ValueParty is an innovative method for quickly gaining an overview of a company’s value landscape.
The resulting value profile answered the following questions:
- Which values are personally important to the people in the company? (the left columns of each color)
- Which values are actually practiced in the company? (the middle pillars of each color)
- What values does the company need in order to be successful in the future? ((the right-hand columns of each color)
The values profile was evaluated in a culture conference with a selection of managers and employee representatives – we call them ambassadors.
The results of this analysis were surprising: although employees perceived themselves as performance-oriented, they did not feel sufficiently valued by the company management. This led to a feeling of demotivation and caused many employees to work “by the book”.
People also felt held back by extensive specifications, process regulations and standards. There was a great need for more flexibility and freedom to make decisions that would enable creative solutions and proactive action.
2. mission statement development: the compass for change
Based on the results of the value discussions, we developed a new mission statement together with the managers and ambassadors in a culture conference that reflected the company’s desired values. A mission statement is the compass that sets the direction in which a company wants to develop. It shows which values should be practiced in the company and serves as a guide for day-to-day work.
The colleagues in our case attached particular importance to the values:
- Transparency: Open and honest communication between all employees.
- Trust: Trust in the skills and decisions of employees.
- Teamwork: cooperation across departmental boundaries and hierarchies.
- Flexibility: Flexible, decentralized decisions by employees based on the specific situation
The results of the analysis and the mission statement were presented to everyone in the company by the ambassadors and discussed in the teams. The colleagues were surprised at how closely the results were aligned with their own feelings and needs.
Management also had its homework to do. Managers should not only support the change, but actively exemplify it. After all, the transformation of a corporate culture always starts with the management, as they are the ones who shape a company’s culture. A lively discussion about how this should be reflected in concrete behavior was held at a management workshop. Not everyone was convinced that the jointly developed mission statement really got to the heart of the matter. There was still some way to go, but this only had a chance because Andreas M. and his colleagues were fully behind the process and were prepared to engage in a close exchange with their managers in order to implement the new culture.
Top management has a decisive role to play in such processes. Only if top management is consistently and unreservedly prepared not only to support the cultural process, but to fully engage in it itself, can a cultural change become fully effective.
3. derive measures: From mission statement to action
Once the new mission statement had been established, concrete measures had to be derived in order to anchor the new values in everyday life. It is not enough to formulate a mission statement – the lived culture must change, and this can only happen through concrete changes in the behavior of employees and managers. In workshops with the various departments, measures were jointly developed to integrate the new values into everyday working life.
Examples of such measures were
- Regular dialog rounds: A number of circles have been set up in which employees from different departments and locations meet regularly to exchange ideas and jointly develop solutions to current challenges.
- Values-based management development: Values-based management training courses were set up in which management dealt with the role management should play in order to actively shape the cultural change and lead their teams in line with the new values.
- Employee surveys: In order to receive regular feedback from employees, a pulse check was introduced in which employees can provide feedback on the corporate culture within one minute every week.
Structural changes were also part of the defined measures. Examples of this:
- Revision of incentives: Many target agreements and associated commission agreements were previously designed to make cooperation between certain departments more difficult. Setting up incentives in such a way that joint results were sought was a mammoth project that was finally tackled in this context.
- Restructuring: In order to support the value of teamwork, some organizational units were restructured and the teams were put together in such a way that they represented the entire value chain from the customer’s perspective. This greatly promoted cross-functional collaboration, as the team boundaries that previously inevitably arose in the process with functionally homogeneous teams were eliminated.
All of these measures actually led to trust between employees and managers, trust between teams, functions and locations being strengthened and open communication being promoted.
The influence of the ValueParty: making values visible
The ValueParty played a central role in the entire process. As an analysis tool for corporate culture, it makes it possible to make the value landscape of a company transparent, map it and thus make it possible to discuss how well the lived culture matches the desired culture and the culture needed (to overcome challenges). The ValueParty serves as a tool to stimulate deeper conversations about values and actively involve employees in change.
The values of the ValueParty describe different cultures that are assigned to the so-called Graves memes, a model developed by Clare W. Graves that divides human values into categories. These values range from power and empire-building (red), adherence to rules and duty (blue), performance and competition (orange), teamwork and community (green) and an agile culture (yellow) through to sustainability (turquoise). In the workshops with our client, we found that many employees were striving for more flexibility and personal responsibility (yellow), while the company placed too much emphasis on control and hierarchy (blue). This discrepancy was a major reason for the existing tensions in the company.
By using the ValueParty, we were able to make these differences visible and create the basis for an open dialog in which employees felt that they were taken seriously. Regular use of the tool made it possible to continuously measure and adapt the progress of change.
Results: A new culture of togetherness
The transformation that the company underwent was impressive. After a year and a half of intensive work on the corporate culture, a clear change could be observed. Employees were more motivated, worked more closely together and took on more responsibility. The reduction of hierarchies and the emergence of an open communication culture were particularly noteworthy.
Some concrete results of the cultural change were:
- Cross-departmental collaboration: Employees who had previously only communicated within their departments began to work across departments and find innovative solutions together.
- Trusting leadership: Managers showed more trust in the abilities of their teams and promoted a culture of personal responsibility.
- Improved motivation: Employees felt more valued in their work as a result of the change and identified more strongly with the company’s goals.
One of the greatest successes was the improvement in internal communication. The regular dialog rounds and cultural conferences led to employees talking more openly about problems and looking for solutions together. The previously rigid structures were replaced by more agile and dynamic collaboration.
Corporate culture and long-term success
A successful corporate culture is more than just a collection of values – it is the foundation on which the long-term success of a company rests. Studies such as the Gallup Engagement Indexrepeatedly show that companies with a strong corporate culture are more productive and innovative and are less likely to struggle with staff turnover and shortages. In our case, the cultural change not only led to higher employee motivation, but also to improved customer focus and more sustainable business success.
The new corporate values such as transparency, trust and teamwork helped the company to react more flexibly to market requirements and respond more quickly to customer wishes. However, the change was not a one-off process – even after the completion of the one-and-a-half-year phase, the corporate culture remains a living issue that is regularly reflected upon and adapted in workshops and meetings. A permanently installed transformation team continuously ensures that the corporate culture is constantly put to the test, that the pulse checks are evaluated and that measures continue to be taken to shape the culture to suit the people and the future challenges of the company.
Frequently asked questions about corporate culture and changing values
1 What is corporate culture? Corporate culture describes the shared values, beliefs and behaviors that shape the daily actions of employees. It is defined by rules, rituals and interactions with one another and plays a key role in determining how the company is perceived both internally and externally.
2 How do you change the corporate culture? Successful cultural change always begins with an honest analysis of the existing culture. All employees should be involved in the process to ensure that there is broad-based support for the change. A clear mission statement, which serves as a guide, and regular measures such as dialog rounds and feedback loops are needed to anchor the change.
Read more about shaping cultural change here >>>
3. how long does a cultural change take? Cultural change is a long-term process that usually takes several years. While the first visible successes can be noticeable after just a few months, it usually takes three to five years to fundamentally change a company’s culture.
4 Which values are important in today’s working world? If we assume a VUCA world, values such as teamwork, trust, transparency and flexibility are crucial in order to be successful in the fast-moving world of work. In particular, companies that rely on agile working methods need a culture that promotes personal responsibility and creative solutions. But a ValueParty values profile can show you whether this is the right culture for your company.
5 What is the ValueParty and how does it work? On the one hand, the ValueParty is a tool that you can use either in the form of a card game or an app to determine the value profile of your team or company and derive the necessary steps for a value-based transformation. On the other hand, the term stands for the 10 steps of the value-based transformation itself, which help you to live the culture that motivates you and helps you to master future challenges.
Conclusion: value-based change as a success factor
Corporate culture is one of the most important levers for ensuring the long-term success of a company. Value-based change makes it possible to change a company’s culture sustainably and adapt it to current challenges. The case described here shows how a clear, structured approach and the involvement of all employees can lead to successful change. In this case, values such as teamwork, trust and openness were the key to a modern, agile corporate culture that not only increased employee motivation but also strengthened the company’s competitiveness.
If you also have the feeling that your company could benefit from a cultural change, please get in touch. We will accompany you on your way to a new, successful corporate culture!