The corporate culture is the foundation on which long-term success is built and encompasses the values, norms and behaviours that shape the company's day-to-day activities. The CEO plays a central role by acting as a role model, setting the direction and initiating necessary changes.
Ways to successfully change corporate culture: The art of leadership
A strong corporate culture is not just a ‘nice-to-have’, but an essential component of any successful organisation. The CEO plays an essential role as the architect of this change.
To initiate an effective transformation, the CEO should first carry out a comprehensive cultural diagnosis. This can be done through surveys, workshops or conversations with employees to get a realistic picture of what is working and what is not.
The next step is to develop a clear cultural vision that is in line with the corporate strategy. The company values should be clearly defined and communicated. As a role model, the CEO should exemplify the desired behaviours - e.g. through openness in communication or respect towards employees.
All employees should also be actively involved in the process of cultural change. The CEO should create opportunities for employees to contribute their ideas, e.g. through open forums to discuss changes. It is also crucial to communicate that mistakes are learning opportunities. This encourages an atmosphere in which risks can be taken.
Authenticity is essential: if CEOs are inconsistent between their words and actions, this undermines their trust. They should therefore be aware of the values they want to embody and consistently reflect these in their behaviour.
Cultural change does not happen overnight. It requires patience and perseverance. Regular feedback loops help to monitor progress and make adjustments where necessary.
Step-by-step guide
1. Carry out a cultural diagnosis: Identify strengths and weaknesses of the current culture through surveys, workshops and discussions with employees
2. Develop a cultural vision: Formulate a clear vision in line with the corporate strategy, define and communicate corporate values
3. Strengthen the CEO's role model function: Actively model desired behaviours, demonstrate openness in communication and respect towards employees
4. Actively involve employees: Create opportunities for employees to contribute their ideas, encourage commitment and strengthen identification with change
5. Use mistakes as learning opportunities: Create an atmosphere where there is no fear of taking risks, publicly recognise and share learning moments
6. Regular communication and feedback: regularly communicate and monitor successes and progress, set up feedback loops
7. Show patience and adaptability: Set realistic timeframes for cultural change, be willing to adapt measures if necessary
Inspiring cultural change from practice
Satya Nadella (Microsoft)
Satya Nadella initiated a significant cultural change at Microsoft after becoming CEO in 2014. He recognised the stagnant ‘know-it-all’ mentality and instead promoted a ‘growth mindset’ culture that emphasises continuous learning. Through open communication structures and interdisciplinary collaboration, he created space for honest feedback on challenges and successes. These changes not only increased employee motivation, but also led to more innovation in Microsoft products.
Howard Schultz (Starbucks)
Howard Schultz not only established Starbucks as a coffee house brand, but also shaped a unique corporate culture. He placed employees (‘partners’) at the centre of the company's strategy and introduced programmes such as healthcare for part-time employees and training opportunities to encourage engagement. Schultz emphasised empathy in leadership, especially in times of crisis, through proactive communication about social issues. These approaches made Starbucks an attractive employer and strengthened both customer loyalty and employee retention.
Key role of the CEO
The CEO is the architect of the corporate culture, which is crucial for the long-term success of a company. A strong culture, characterised by clear values, promotes the performance of the organisation. To initiate cultural change, the CEO should analyse the existing culture, obtain honest feedback from employees and develop a clear cultural vision. Through authentic behaviour, the CEO can act as a source of inspiration and anchor the desired values in the company. The company's success ultimately depends on its ability to establish and continuously adapt a positive corporate culture.
How does your role as CEO influence the corporate culture? What measures do you plan to take to bring about positive change?