Organizations must continually evolve to thrive long-term. Consider Netflix and Apple, two companies that rose to prominence and dominated market share through ongoing innovation. Developing a culture of innovation in any organization, however, is easier said than done.
Employee surveys show that many are dissatisfied with the status quo in their organizations and perceive that changing organizational culture is an opportunity for their companies to evolve. In a PwC survey of U.S. employees, 96% said their organizational culture needs “some change.” Approximately half said it requires a “major overhaul.”
Organizational culture refers to the shared beliefs, values and norms among an organization's members. Building a strong organizational culture is a leadership responsibility. Leaders who drive successful culture change initiatives contribute to long-term organizational growth.
This blog post explains how current and prospective leaders can lead effectively through changing organizational culture and how earning a Doctor of Education can help cultivate these leadership skills.
How Does Organizational Culture Impact the Change Process?
Culture is critical to organizational transformations because it can significantly help or hinder the change process. Most change efforts fail because of the organizational culture rather than the change strategy.
Here are a few examples of how organizational culture impacts the change process:
- Organizations with a culture of innovation instill a growth mindset in employees, improving change readiness. Conversely, risk-averse cultures may cause employees to resist change.
- Organizational cultures that foster open communication may implement change more effectively because employees understand and participate in the process. Misinformation and confusion can strike cultures with limited communication, complicating the change process.
- Employees in collaborative cultures feel a sense of ownership in organizational transformations. Without collaboration, they may oppose change because they don’t view themselves as part of the decision-making process.
Building a culture that supports organizational transformations starts from the top down. Organizational leadership creates the foundation for successful change and influences every element of the change process.
At Trek Bicycle Corporation, commonly known as Trek, leaders have demonstrated accountability for the organizational culture. A few years ago, they wanted to revamp company culture to better reflect the mission of changing the world through bicycles—across 6,500 employees in 27 countries.
Trek leaders gathered employee feedback through a survey and analyzed it to understand how they could improve organizational culture. They implemented several culture change initiatives to address employees’ concerns, which helped triple the company’s size and increase profitability.
Trek demonstrated that leaders who improve culture can positively impact organizational growth.
What Defines a Strong Organizational Culture?
Culture is unique to every organization and, therefore, self-defined. Generally, most employees embody the desired values and beliefs in strong organizational cultures.
There are several indicators of strong organizational cultures and of cultures that may benefit from culture change initiatives:
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Indicators of Strong Organizational Culture1 |
Indicators of Weak Organizational Culture2 |
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According to Gallup research, impassioned leadership is one of the five most important drivers of company culture. Leaders who clearly define, communicate and model the desired values and beliefs help create strong organizational cultures capable of accelerating change.
What Are the Steps for Leaders to Transform Organizational Culture?
The steps for transforming organizational culture depend on many factors, such as the company size and scope of desired change. However, the following steps can provide broad guidance on effectively directing culture change initiatives.
Leaders start by assessing the current culture and defining the desired one. They align all employees around their vision, implement an action plan, and continuously monitor progress to ensure successful cultural transformation.
Step 1: Assess
Changing organizational culture begins with understanding the current culture. Leaders must determine how employees perceive the working environment.
What are the values, behaviors and beliefs embedded in the organization's day-to-day activities? Perhaps teams do not share information, resulting in duplicate efforts. Maybe employees are afraid to suggest new ideas.
Leaders can contribute their insights but should also gather wider feedback through surveys or interviews. The findings will help determine which aspects of the culture must shift to support organizational success.
Step 2: Define
Next, leaders decide how the organizational culture should change based on the current state. This step involves defining the values, behaviors and beliefs the new culture will foster. These must align with the organization’s vision, mission, strategy and goals to provide employees a clear sense of direction.
In an organization where employees fear sharing their ideas, leaders may decide to cultivate a culture based on innovation, open communication and collaboration. They may establish formal channels for idea sharing, opportunities to experiment and processes for providing constructive feedback.
Step 3: Align
Gaining alignment ensures that culture change initiatives successfully take shape. In this step, leaders must communicate about the desired changes so that everyone in the organization understands and embraces them. The communications should explain the desired culture, the reasons for shifting to it and the benefits employees can expect to derive from it.
Alignment among leaders and managers is especially important. They gain employees’ trust when they demonstrate and promote the desired changes. Recognizing and rewarding employees who exemplify the new cultural values also supports buy-in.
Step 4: Implement
Leaders must create a step-by-step action plan for changing organizational culture. The plan should describe how the organization will align its systems, processes and policies with the desired culture. This may involve significant overhauls, such as redesigning workflows, adopting new communication channels or changing reporting structures.
Leaders should maintain open communication throughout the change process to keep employees engaged. They should share regular progress updates, celebrate milestones, address concerns and provide training and development.
Step 5: Monitor
Monitoring is the last step in leading through a changing organizational culture. Leaders can use measurement tools to assess shifts in culture. Is the organization moving toward the desired state—and how quickly? Employee surveys, engagement metrics and performance data provide valuable insights.
Typically, organizations see the most substantial gains from culture change initiatives in three to five years. During this time, leaders should demonstrate flexibility, adjusting the implementation plan based on the measurement results.
How Will an EdD from Spalding University Help You Lead through Organizational Transformations?
Earning a Doctor of Education (EdD) is a formal educational pathway to advancing your leadership for effective organizational transformations. What you learn in an EdD program will prepare you to solve real-world organizational issues.
Spalding University offers an online EdD in Leadership designed for current and aspiring leaders working in every discipline. The program focuses on four themes that reflect the role of today’s leaders in navigating organizational change and other challenges:
- Advanced Leadership Concepts in Practice: Evolve your leadership approach by analyzing traditional and modern theory and through personal development. You will learn from doctorally prepared instructors who are also practicing organizational leaders in courses such as Systems Theory and Leadership and Leadership Theories and Academic Writing and Research.
- Global and Cultural Perspectives: Develop a sophisticated awareness and understanding of the cultural differences in local, national and international contexts. You will study topics such as ethical leadership and global leadership.
- Organizational Innovation and Change: Use proven methods and systems thinking to facilitate innovation and influence organizational transformation. Learn how to lead innovative and creative change across organizations and within communities.
- Research-Informed Decision-Making: Discover effective methods for identifying and analyzing organizational issues. Apply research-based best practices and methodologies to support impactful, data-driven decisions, as demonstrated in a final capstone project.
Spalding’s online EdD in Leadership is a collaborative, interdisciplinary and globally conscious program that will prepare you to innovate and create sustainable, transformational change.
Learn to Lead More Strategically and Ethically with an Online EdD in Leadership from Spalding University
Every organization must evolve to thrive, and the success of organizational transformations relies on strong organizational leadership. Earning your EdD in Leadership from Spalding University online will give you a fresh perspective on being a transformative leader. Spalding University online is a home for students of all ages and from all walks of life to come together to earn an advanced degree that will enhance their lives and the lives of others.
Designed for working professionals, Spalding’s accredited online EdD in Leadership program is for students who want to pursue leadership roles in a variety of industries and disciplines. You can earn your terminal degree in just two years while maintaining your current job responsibilities and personal lifestyle.
As a graduate, you will stand out as an exemplary practitioner of ethical organizational leadership, an extraordinary team builder, a systems thinker and a driver of change and innovation in a global economy.
Unlock your full potential and change the world with Spalding. Our online EdD in Leadership will amplify your influence and ability to navigate challenges, drive innovation and lead change. Connect with an enrollment advisor to get started.
