The brand as a enabler of cultural change
The shortage of skilled labour in Switzerland is reaching new highs and there is no easing in sight. Companies are looking for quick solutions to this existential problem. But efficient recruiting alone is not enough. Employee recruitment is only one side of the coin. High staff turnover causes immense costs and untapped potential. Contradictions between promise and experience and a lack of appreciation drive employees to change jobs. As philosopher and management consultant Reinhard K. Sprenger says: “People join companies, but they leave managers”. A corporate culture based on clear values and a credible promise is crucial for success.
“You can’t do culture”
We are often confronted with this statement in our work as brand consultants. What is more correct and important is: “Culture does not happen overnight”. Companies need to understand that it is a long-term process that requires commitment from top management. The rapid technological development and the many social crises of recent years do not make these processes any easier: people are tired (change fatigue) and are worried that they will not be able to maintain their productivity levels. A higher proportion of hybrid work is also making it more difficult to maintain loyalty to the corporate culture. According to the Forrester Report 2023, 40% of European employees will be working from home at least some of the time in 2024.
The brand as a catalyst
A framework is needed in which culture can unfold. As a guiding star, the brand can set clear goals for cultural change and help to anchor the topic in top management in the long term. Without a shared understanding of the future, a clear path to a strong culture cannot be created. It is essential to take an honest and systematic look at the corporate identity in order to understand what motivates employees and to derive a differentiating employer promise from this. If the employer brand is understood as the inner core of the brand identity, it is possible to create preference externally and identification internally. (Read more about our rules for successful employer branding here).
Four steps for successful cultural change
There are many models of cultural change in the literature and different approaches may be helpful depending on the organization and the initial situation. Nevertheless, according to a survey (Gartner, 2023) of HR managers worldwide, 47% do not know how to achieve the desired culture. We have identified four steps that pave the way for successful cultural change:
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- 1. Understanding reality: With our Heads Brand ProfilingTM analytical approach, we capture the perspectives of different stakeholder groups in the company in an analytically sound manner. Although employees and management often share a common vision, they assess the current situation differently and therefore set different priorities. The comparison of internal and external views as well as the actual and target images is an essential “reality check” to understand which emotions and actions can be used to strengthen the corporate culture.
- 2. Show the direction: In order to motivate and mobilize people for change, a sense of urgency must be created. It must be clear why and how the culture should change. Vision and purpose succinctly communicate the future viability of the company. They form the basis for breaking down the contribution of individual employees to achieving the company’s goals. Motivation and commitment come from an understanding of one’s own effectiveness.
- 3. Set rules: In addition to defining the “playing field” (vision and purpose), “rules of the game” are needed to ensure that behavior is not arbitrary and based on assumptions. Clear values and operating principles are the expression of the desired culture. They show how to behave in a way that is consistent with the culture. It is only through this orientation framework that culture can develop and identification can occure.
Case: Heads developed a global employer branding campaign for the Comet Group that focuses on a special mindset as an asset – the motto: “We are curious. Are you?”. The success of the positioning stands and falls with the promotion of curiosity in the corporate culture. For this reason, the core values were complemented by practical principles, including understanding the customer’s perspective by asking questions and listening; creating an environment where people can discover, try out and learn; and showing an honest interest in other perspectives. Read more about the Comet Employer Branding campaign here.
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- 4. Establish routines: Values and rules only become a living culture when they become habits and routines.
Cultural change is not a sprint and cannot be artificially accelerated. Systematically structured culture programs are an effective tool for developing goal-oriented routines and supporting employees in establishing them.
Case: In 2014, AMAG started a transformation process to become more customer-focused. In order to embed the new corporate strategy in the company’s culture, it had to be communicated to the entire workforce in a simple way. Heads developed the “WE SURPRISE” culture program with the goal of empowering employees with simple tips and processes to positively surprise customers on a daily basis.
Read more about AMAG’s customer initiative here.
- 4. Establish routines: Values and rules only become a living culture when they become habits and routines.
In a nutshell
A positive corporate culture is created when ….
- companies understand how stakeholders see reality;
- succeed in setting a clear direction so that everyone understands their contribution to the company’s success;
- values-based rules provide a framework for orientation and
- routines and habits are developed through long-term programs.
The brand serves as a guiding star that creates identity and decisively paves the way for cultural change. At the heart of a positive corporate culture is the strengthening of interpersonal relationships, appreciation and trust. This leads to satisfied and motivated employees – a decisive factor in the fight against the shortage of skilled workers.