Due to the retirements of the KLH consulting company's founder-managers, Bri, a long-time employee has recently been promoted to CEO. KLH is an IT consultancy that specializes in installing and servicing computerized network systems for small-to-medium size businesses, but KLH has recently experienced declining sales, missed deadlines, increasing costs, and the departures of many fellow long-term employees. What steps could Bri take to change a culture that is out of step with the company's strategy?

Question

What will be an ideal response?

Answer 1

The place for Bri to begin a major remodeling of KLH's corporate culture is by identifying those facets of the current culture that are conducive to good strategy execution and those that are not. The next step for Bri involves specifying what actions, behaviors, and work practices should be prominent in the "new" culture. The third step is to talk openly about the problems of the present culture and discuss how new behaviors will improve company performance. The final step involves selling remaining KLH personnel and/or recruiting new personnel who are in sync with the need for new-style behaviors and work practices. Doing so involves making a compelling case for culture change, which can be accomplished by: (1) citing reasons the current strategy has to be modified and why new strategic initiatives are being undertaken; (2) citing why and how certain behavioral norms and work practices in the current culture pose obstacles to good execution of new strategic initiatives; (3) explaining why new behaviors and work practices have important roles in the new culture and will produce better results; and (4) following up quickly with forceful, high-profile actions that are both substantive and symbolic.