Drivers of Corporate Culture Change: 6 Most Common to Get Right

Are You Facing Any of These Drivers of Corporate Culture Change?
Beyond changes in corporate strategy, most organizations that need to shift their culture are reacting to one or more common drivers of cultural change. Because strategy flows through people and culture to be executed effectively, shifts in leadership, business circumstances, or organizational priorities often necessitate a rethinking of how work gets done.

Any organization struggling to consistently execute strategy should take a hard look at its culture. While most could benefit from increased productivity, a distinctive competitive advantage, and smoother operations, many have yet to treat culture as a strategic lever.

Ask yourself: Have you assessed whether your organizational culture is aligned with your strategy?

Common Drivers of Corporate Culture Change

1. Change in Leadership
   A recent technology client hired a new CEO to replace the founder and drive higher growth. While the founder prioritized internal systems and efficiency, the new CEO’s strategy required an external focus on markets, customers, and competitors. Leadership misalignment often ripples through culture, increasing churn, frustration, and disengagement.
2. Mergers and Acquisitions
   A high-tech company struggled to execute company-wide strategies after multiple acquisitions. Conflicting approaches to market leadership, decision making, and customer intimacy highlighted a misaligned culture. Are your divisions, teams, and functions rowing in the same direction?
3. Sudden or Unexpected Downturn
   A healthcare client discovered that a siloed culture hindered cross-selling and up-selling initiatives. Their fragmented culture and performance management systems had to be realigned to support collaboration and new growth priorities.
4. Brain Drain
   A technology client faced rising attrition among top talent in key roles. They realized that their cultural approach to innovation and employee engagement had to change to retain critical people and achieve strategic targets.
5. Exponential Growth
   A professional services firm growing 30% annually for three years needed a cultural shift toward more standardized practices to maintain efficiency and continue profitable growth.
6. System, Process, and Business Practice Changes
   A financial services client implemented a new ERP system, dramatically changing workflows for employees and customers. While the technology supported the strategy, culture and change readiness lagged behind, creating adoption challenges.

The Bottom Line
Be alert to these drivers of corporate culture change — they often signal or create cultural misalignment. When they occur, resist the temptation to move straight from strategy design to action planning. Take the time to ensure that how work gets done (the “how”) is fully aligned with your strategic goals (the “what”). Addressing culture proactively dramatically increases your likelihood of successful strategy execution.

To learn more about how to handle drivers of corporate culture change, download A Purposeful and Aligned Organizational Culture – Your DNA for Success