What are the risks and rewards of implementing culture change initiatives?

1 Risk 1: Resistance

One of the most common and challenging risks of culture change is resistance from the people who are affected by it. Resistance can take various forms, such as denial, anger, sabotage, or withdrawal, and can stem from different sources, such as fear of the unknown, loss of identity, lack of trust, or perceived injustice. Resistance can undermine the effectiveness and sustainability of culture change initiatives, as well as create conflict and stress among the stakeholders. To overcome resistance, change managers need to communicate the vision, purpose, and benefits of culture change clearly and consistently, involve and empower the people in the process, address their concerns and needs, and provide feedback and recognition.

2 Risk 2: Inconsistency

Another risk of culture change is inconsistency between the espoused and enacted values, beliefs, norms, and behaviors of the organization. Inconsistency can occur when the culture change initiatives are not aligned with the strategy, structure, systems, and processes of the organization, or when the leaders and managers do not model and reinforce the desired culture. Inconsistency can create confusion, frustration, and cynicism among the employees and stakeholders, as well as damage the reputation and credibility of the organization. To avoid inconsistency, change managers need to ensure that the culture change initiatives are coherent and integrated with the other aspects of the organization, and that the leaders and managers demonstrate and support the new culture.

3 Reward 1: Performance

One of the main rewards of culture change is improved performance of the organization. Performance can be measured by various indicators, such as productivity, quality, innovation, customer satisfaction, employee engagement, or profitability. Culture change can enhance performance by creating a shared vision and direction, fostering a positive and collaborative work environment, encouraging learning and adaptation, and motivating and rewarding excellence. To achieve performance, change managers need to define and monitor the expected outcomes and impacts of culture change, and to align the incentives and rewards with the new culture.

4 Reward 2: Differentiation

Another reward of culture change is differentiation of the organization from its competitors. Differentiation can be achieved by developing a unique and distinctive culture that reflects the values, beliefs, norms, and behaviors of the organization, and that appeals to the customers, employees, and stakeholders. Culture change can enable differentiation by enhancing the identity and image of the organization, creating a competitive advantage and a loyal fan base, and attracting and retaining talent and resources. To realize differentiation, change managers need to communicate and promote the new culture internally and externally, and to leverage the strengths and opportunities of the organization.

5 Reward 3: Transformation

A final reward of culture change is transformation of the organization and its environment. Transformation can be understood as a radical and lasting change that affects the core and essence of the organization, and that influences and shapes the industry, society, and world. Culture change can facilitate transformation by inspiring and empowering the people to pursue a higher purpose and vision, by fostering innovation and creativity, and by generating positive and sustainable value and impact. To accomplish transformation, change managers need to cultivate and nurture a culture of change, and to engage and collaborate with the stakeholders and partners.