How does organizational culture impact the change process?

WalkMe Team
By WalkMe Team
Updated July 23, 2024

Organizational culture significantly impacts change by influencing employee readiness, engagement, and resistance to new initiatives. 

When your team is positive, it’s easier to adapt to change and work together. This smooths out transitions and helps new things succeed.

According to McKinsey, 70% of transformations fail, and 70% of those failures are due to culture-related issues.

According to McKinsey, 70% of transformations fail, and 70% of those failures are due to culture-related issues

If you’re looking to navigate the complexities of organizational change, a thorough grasp of your company’s culture can be your compass. 

But what exactly is organizational culture, and how does it intertwine with the change process?

In this article, we’ll dissect how ingrained cultural elements influence your readiness for change and how they play a pivotal role during change implementation.

Organizational culture vs. organizational change process

Organizational culture is a blend of values, beliefs, and attitudes that shapes the behavior and interactions of team members within a company. 

Think of it as the invisible thread weaving through every conversation, decision, and strategy. It’s intangible, yet its impact is palpable. Your employees’ productivity, morale, and even the success of introduced changes are tethered to it.

Now, let’s shift gears and touch upon the organizational change process. It’s a structured approach that pivots your company from its current state to a desired future state. 

This can encompass anything from a slight modification in a business process to a complete transformation of company structure and identity. 

However, each change, regardless of its magnitude, brings along its unique set of challenges.

Herein lies the crux of our discourse— how the undercurrents of organizational culture impact this journey of transformation.

The intricate relationship between culture and change

Organizational culture is not a static entity. 

It morphs and evolves, influenced heavily by leadership and employee engagement. 

Your leadership team sets the tone for the entire organization. The values, beliefs, and practices you promote create the foundation for your company’s culture.

Employees are not just passive recipients of this culture. They are active participants in shaping it. Every interaction, feedback exchange, and collaboration contributes to the cultural milieu. 

Acknowledging and understanding this dynamic nature is your first step towards leveraging culture during times of change.

Your organizational culture acts as a lens through which employees view and respond to change. 

A culture steeped in innovation and adaptability naturally promotes a higher degree of change readiness. According to Gartner, employees’ ability to navigate competing cultural norms is the single biggest driver of performance in times of transformation.

Employees in such environments are more likely to embrace change, viewing it as an opportunity rather than a threat.

Conversely, you’ll likely encounter resistance in a culture resistant to change, where employees rigidly adhere to traditional values. Employees in such settings are often apprehensive about stepping out of their comfort zones, leading to a lower change readiness.

Taking the pulse of your organizational culture offers insights into potential resistance, enabling you to strategize effectively to enhance acceptance and minimize resistance. 

Your ability to anticipate, understand, and navigate through these cultural nuances amplifies your efficacy in leading organizational change.

How to cultivate a culture conducive to change

How to cultivate a culture conducive to change (1)

How can you foster a culture where change is actively propelled?

The journey starts with understanding that a change-friendly culture is characterized by continuous learning and development. It’s a space where employees are not shackled by the constraints of traditional methods but are encouraged to explore, innovate, and grow. 

Here, change isn’t a sporadic visitor. It’s a constant companion, steering your organization towards evolving horizons of excellence.

So, what steps can you take to foster this culture?

1. Understand the current culture

Start by conducting a thorough assessment of the current organizational culture. 

Use surveys, interviews, and observations to understand the prevailing values, beliefs, and behaviors. 

Identify which elements of the existing culture support change and which ones act as barriers.

2. Focus on learning and development

Enhance and develop training programs to equip employees with the necessary skills to adapt to change. 

Tailor these programs to align with the specific needs and challenges associated with each change initiative. 

The objective is to instill a lifelong learning ethos, where employees are motivated to grow and evolve continually.

3. Promote open communication

Establish clear and open channels of communication. 

This ensures that ideas, feedback, and information can flow freely among all levels of the organization. 

This openness helps to alleviate concerns, dispel rumors, and ensure everyone is informed and aligned with the change objectives.

4. Encourage innovation

Create an environment that rewards creativity and innovation. 

Allow room for experimenting with new ideas and approaches. 

When employees feel safe innovating, it fosters an adaptable culture that is ready to embrace change with an open mind.

5. Lead by example

As a leader, embody the values and behaviors that align with a change-ready culture. 

Your adaptability, positive outlook, and proactive approach to change serve as a model for your team and encourage similar attitudes and behaviors.

6. Involve employees in the change process

Make the change process collaborative. 

Include employees in the planning and implementation phases, valuing their insights and contributions. 

This involvement fosters a sense of ownership and commitment, reducing resistance.

7. Provide support

Acknowledge that change can be challenging. 

Offer resources, tools, and emotional support to help employees navigate through the transition. 

This could include workshops, counseling, and providing platforms for feedback and discussions.

8. Evaluate and adjust

Regularly assess the effectiveness of the change initiatives. 

Utilize feedback and performance metrics to make informed adjustments. 

This ongoing evaluation ensures that the change process aligns with organizational goals and employee well-being.

9. Celebrate successes

Recognize and applaud achievements and milestones during the change process. 

Celebrations foster positivity and motivation, reinforcing the benefits of change and encouraging a positive outlook.

10. Institutionalize change

Ensure that successful changes are embedded into the organizational practices, norms, and values. 

This involves integrating new behaviors, processes, and strategies into everyday operations, ensuring that change is sustained and becomes part of the organizational identity.

The evolution of culture and change

The future of organizational change is undeniably intertwined with the evolving trends in the business landscape. 

Remote work, increasing diversity, and the rapid pace of technological advancements are shaping the very shores upon which organizations are built. 

Your adaptability as a leader and the flexibility of your organizational culture are the sails catching these winds of change.

Remember, each change initiative, each transformation, is an opportunity to refine, evolve, and enhance your organization’s structural and cultural architecture. 

It’s an evolution from a static entity to a dynamic, living organism that grows, adapts, and thrives amidst change.

Every employee and leader is a co-navigator, and their collective intelligence, creativity, and adaptability are your north stars. 

With a culture conducive to change, the horizons of unprecedented success, innovation, and growth are well within your reach.

WalkMe Team
By WalkMe Team
WalkMe pioneered the Digital Adoption Platform (DAP) for organizations to utilize the full potential of their digital assets. Using artificial intelligence, machine learning and contextual guidance, WalkMe adds a dynamic user interface layer to raise the digital literacy of all users.