How important is Culture in transforming business models?
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“We are more efficient in processes, more autonomous and closer to each other, we are more collaborative. Before there was a culture of the CEO making all the decisions, today I can go on vacation and the team works alone. They collaborate a lot with each other. Before I had to give them the ideas, now they come together and come up with ideas, solutions.”


Andrés Hecht – General Manager Perú - Taco Bell


77% of the participants believe that the transformation of the business model will necessarily involve a change in the organizational culture, and 84% believe that culture is of great importance as a driver or an obstacle to the transformation of the business model. Based on this data, we can say that there is a consensus that culture can be both a strength and a weakness.


Furthermore, 73% think that organizational culture will have a very significant impact on the organization’s leaders, significantly modifying their behavior, thus confirming the importance of alignment between culture and leadership.


When we talk about this “new leadership,” and according to McKinsey3, which puts at the center of the transformation not only culture, but also the statement of purpose that “satisfies people’s need to feel that they belong and are part of something bigger than themselves,” we understand why leaders in this new environment must pay special attention to building and transmitting this sense of purpose.


From these reflections, we link to the key characteristics that project participants consider essential in an appropriate culture to accelerate or consolidate transformation, in order of importance:


1. Agility;
2. Collaboration and Teamwork;
3. Innovation;
4. Flexibility.


Finally, if we previously cited the “Ability to attract, retain and develop talent” among the key organizational capabilities to succeed in their transformation to new business models, recent studies show that for a growing percentage of executives, culture is a top priority when evaluating a potential job change. We are even starting to see more and more candidates requesting a “Cultural Fit Analysis” before deciding whether or not to join an organization. Our ATHENA tool allows us to assess the fit between the candidate’s drivers and those of the organization, their boss, and their peers.


“Demand for results, focus on what can be achieved rather than on effort. According to our climate survey, employees are looking for flexibility and space for each other: more empathy”.


Irina Catta Preta – Head of Talent & Culture Brazil - Raízen


What are the differences in the cultural transformation per region?

The process of change is more advanced
Greater need to achieve cultural change
The cultural change still needs work

IBERIA

37% of the respondents believe there is alignment between culture and objectives goals or if you are on the verge of achieving it.


Another 37% believe that the necessary culture is still far from being achieved.


25% agree that although their organizations have worked to make some changes in culture, there is still some way to go.

MEXICO

For 24% of participants, there is total alignment between culture and strategic objectives in their organizations.


27% believe that although some changes are still needed, the culture is still necessary.


On the other hand, 31% agree that they are halfway to reaching the necessary culture, which still needs work.


Finally, 7% believe that there is a total misalignment between the culture and the objectives of the organization’s goals.

LATIN AMERICA

68% of participants in this region opine that their organizations require certain changes in their cultures in order to act as a leverage to achieve their goals.


20% believe that there are still necessary major changes needed and that they are far from having the continuity required to drive business change.


Finally, for 11%, their organizations already have the necessary aligned with their objectives.

BRAZIL

76% believe that it is still necessary to make changes.


For 18%, the organizations are far from having the culture in place.


Only 5% believe that their companies already have the culture in place to achieve strategic goals.

The process of change is more advanced

IBERIA

37% of the respondents believe there is alignment between culture and objectives goals or if you are on the verge of achieving it.


Another 37% believe that the necessary culture is still far from being achieved.


25% agree that although their organizations have worked to do some changes in culture, there is still some way to go.

MEXICO

For 24% of participants, there is total alignment between culture and strategic objectives in their organizations.


27% believe that although some changes are still needed, the culture is still necessary.


On the other hand, 31% agree that they are halfway to reaching the necessary culture, which still needs work.


Finally, 7% believe that there is a total misalignment between the culture and the objectives of the organization’s goals.

Greater need to achieve cultural change

LATIN AMERICA

68% of participants in this region opine that their organizations require certain changes in their cultures in order to act as a leverage to achieve their goals.


20% believe that there are still necessary major changes needed and that they are far from having the continuity required to drive business change.


Finally, for 11%, their organizations already have the necessary aligned with their objectives.

The cultural change still needs work.

BRAZIL

76% believe that it is still necessary to make changes.


For 18%, the organizations are far from having the culture in place.


Only 5% believe that their companies already have the culture in place to achieve strategic goals.

“Organizational culture can have a positive impact. And it will depend largely on the commitment of the head of the organization (Executive Team) and the adoption of the ability - objective of adaptation / transformation.”


José Manuel López – Human Resources Vice President México – Grupo Axo

What are the differences in cultural change by industry?

If we analyze the industry responses, it is clear that some are much more advanced than others in the evolution of their culture as a lever to achieve the strategic objectives and the transformation of their business models. Possibly more recently formed companies, which are not “heirs” to a series of cultural evolutions, are closer to having this culture “right” than those that have tried to transform their culture continuously, and often unsuccessfully, in recent years.

TECHNOLOGY

Strongest in cultural alignment. 62% agree that their company has the culture in place and has made the fewest changes necessary to achieve strategic goals.

RETAIL & CONSUMER

Farthest in achieving cultural transformation. For 40% of the participants, there is some alignment between the organization’s culture and strategic goals. However, changes are still needed. But 19% are of the opinion that there is a total misalignment between culture and objectives in their organizations.

AGRICULTURE

Long way to go. Traditional sectors are working more slowly in the transformation process. 37% feel that their company does not have the culture it should have and that there is still a long way to go to align it with the strategic goals. Only 5% believe that they have the right culture.

EDUCATION

Long way to go. Can be considered a more traditional sector. Almost 100% of respondents in this sector feel that their organizations still need to work on cultural change in order to achieve their strategic goals.

FINANCIAL SERVICES, LIFE SCIENCES, AND MANUFACTURING

Are well oriented. On average, 67% agree that while there is still work to be done, important changes have been achieved in the culture of their organizations, allowing them to chart a good course toward achieving their goals.