This is the first full video of the 4tC rubric – DECODING CHANGE – where we talk about the “Business Value of Cultural Change”.
View the video interview transcript below.
Question: Who is Pedro Valido and what is his role?
Answer: My name is Pedro Valido, I work as a strategist and business developer at the Change of 4TC.
Question: What is the business value of cultural change according to Pedro?
Answer: The business value of cultural change is significant. If you don’t have the right culture then the execution of your strategy will have several issues and probably will not get the best results that you want in terms of implementing your strategy. Companies with the right culture have a much higher return to shareholders, about 60 percent higher, signifying that culture has a real business value.
Question: What are the visible effects of a cultural change on the operational side of a business?
Answer: On the operational side, several things happen in terms of the business value of cultural change. You’re going to have a better strategy execution, there’s less absenteeism, there’s more retention and therefore whatever you are doing in day-to-day will have a much better flow in terms of how things are progressing.
Question: How does a high-performing culture impact a company’s adaptability and productivity?
Answer: Companies with higher-performing cultures are easier to adapt to the market, especially in a rapidly changing world. There is increased productivity due to higher engagement and workplace satisfaction. The individuals in these companies will gain more knowledge and skills, leading to greater leadership, and these individuals are more marketable in the job market.
Question: How does a company’s culture influence its attractiveness to potential employees and customers?
Answer: If a company has a positive culture, it will be known for this because everything that they do will have an inspiration behind it to attract people. Customers feel the change even from a chemical point of view. They feel the passion behind the company and the interest the company’s representatives have in solving customer problems. This improves the customer experience for existing customers and attracts new customers.
Question: What is the impact of a positive culture on business results?
Answer: A positive culture has a significant impact on business results. It can lead to a high return to shareholders and an increase in business results, potentially by 5 to 10 percent.
Question: What happens if you work in a culture that is not the right one?
Answer: If you work in a culture that is not the right one, people may not feel engaged, which can affect the results of the company’s performance. This can lead to issues in strategy execution and lower returns to shareholders.
Question: What is the connection between culture and strategy, according to Peter Drucker?
Answer: Peter Drucker used to say, “The culture eats strategy for breakfast, and sometimes even lunch and dinner.” This means that if you don’t have the right culture, the execution of your strategy will have several issues, and probably will not get the best results that you want in terms of implementing your strategy.
Question: How does a high-performing culture contribute to employee retention?
Answer: A high-performing culture contributes to employee retention as people in the right culture are more engaged, they’re more willing to come to work. Because they are engaged and enjoy working in these environments, there’s going to be an improved attraction of people who want to work in this company.
Question: How does a positive culture affect a company’s sales and customer relations?
Answer: A positive culture can greatly improve a company’s sales and customer relations. Customers feel that the people who are in front of the customer are interested in solving customer problems. This not only improves the customer experience for existing customers but also in terms of new customers, they’ll be attracted by this because they will see a company where they feel comfortable giving their business to.
