Putting Culture First: Learning How to Leverage Culture Transformation for Competitive Advantage, by Jonathan H. Westover PhD

Abstract: This article explores the strategic importance of organizational culture as a critical driver of competitive advantage, drawing upon the author's extensive consulting experience across diverse industries. It presents a comprehensive framework for cultural transformation, highlighting key phases including assessing existing cultural dynamics, building internal consensus for change, developing structured transformation roadmaps, implementing strategic initiatives that reinforce desired behaviors, and sustaining momentum through continuous evolution. The author emphasizes that successful cultural transformations require deliberate leadership commitment, cross-functional engagement, and the integration of cultural objectives with business strategy. Through illustrative case examples and practical recommendations, the article demonstrates how intentionally shaped organizational cultures can empower employees, strengthen workplace relationships, and enhance performance outcomes. By positioning culture as a strategic asset deserving the same focused attention as traditional business functions, the author provides leaders with actionable insights to leverage culture's transformative potential within their unique organizational contexts.

Episode Transcript

Putting Culture First (00:00):
Learning How to Leverage Culture Transformation for Competitive Advantage Abstract

(00:14):
drawing upon the author's extensive consulting experience across diverse industries.
It presents a comprehensive framework for cultural transformation,
highlighting key phases including assessing existing cultural dynamics,
building internal consensus for change,developing structured transformation roadmaps,

(00:36):
implementing strategic initiatives that reinforce desired behaviors,
and sustaining momentum through continuous evolution.
The author emphasizes that successful cultural transformations require deliberate leadership commitment,
cross-functional engagement,and the integration of cultural objectives with business strategy.

(00:57):
Through illustrative case examples and practical recommendations,
the article demonstrates how intentionally shaped organizational cultures can empower employees,
strengthen workplace relationships,and enhance performance outcomes.
By positioning culture as a strategic asset deserving the same focused attention as traditional business functions,

(01:22):
the author provides leaders with actionable insights to leverage culture's transformative potential within their unique organizational contexts.
Over my career,one of the topics I have been most passionate about is culture—particularly how an organization's culture can be intentionally shaped and evolved over time to empower workers,

(01:42):
strengthen relationships,enhance performance and drive competitive advantage.
Having worked with numerous companies across various industries throughout my career,
I have seen firsthand how culture ultimately serves as either an enabler or inhibitor of organizational success.
Today we will explore key learnings on assessing culture,

(02:05):
making the case for transformation,embarking on the change journey and sustaining new cultural norms—all with the goal of helping leaders better leverage the untapped power of culture in their own unique contexts.
Let's dive in.
Recognizing the Need for Culture Change The first critical step in any culture transformation effort is rightly diagnosing your existing culture and understanding how it may need to evolve given shifting strategic priorities,

(02:33):
market dynamics or performance challenges.
More often than not,leaders underestimate just how much their day-to-day behaviors,
unwritten rules and implicit expectations collectively shape the experiences and behaviors of employees (Schein,
2017).
They also tend to overlook cultural misalignments until key metrics start declining or rising employee turnover becomes too difficult to ignore.

(03:01):
As a consultant,I have found it invaluable to conduct confidential employee surveys and one-on-one interviews at the outset of an engagement in order to uncover any "undiscussables" within the existing culture and identify barriers to desired changes.
Some common pain points that routinely emerge include siloed ways of working,

(03:22):
misplaced reward systems,lack of accountability,insufficient collaboration and risk aversion.
My job is then to help interpret these sentiments,
surface any cultural norms hindering progress and present a candid but constructive view of reality back to leadership.
This feedback can be difficult for some executives to hear at first.

(03:45):
But in my experience,leaders who are truly committed to driving transformational change welcome the transparency and view it as an opportunity to address root causes,
not symptoms.
They understand the status quo will only sustain mediocrity and that competitive advantage lies in continually evolving one's culture to match strategic priorities (Kotter,

(04:08):
2012).
When assessing their own situation,leaders would be wise to solicit candid input from multiple perspectives and avoid making assumptions about cultural fit or misfit based solely on surface-level indicators.
Making the Case for Culture Transformation Internally Once the need and opportunity for culture change has been clearly established,

(04:30):
leaders must skillfully make the case for transformation to key internal stakeholders.
This involves more than just presenting a list of problems—it requires painting a compelling vision for what is possible and inspiring others to help drive progress.
Through my work facilitating change management strategies,

(04:50):
I have found it useful for leaders to engage stakeholders in envisioning how their day-to-day experiences could be more positive and impactful given shifts in cultural norms.
For example,focusing discussions on how empowered decision-making,
increased knowledge sharing or improved collaboration could better equip teams to solve problems,

(05:12):
pursue new opportunities and seamlessly work across functions.
Translating high-level aspirations into tangible impacts keeps the "why" of change front and center.
Leaders must also be prepared to address any fears or uncertainties that change inevitably surfaces by clearly outlining how the transformation effort will be led,

(05:33):
when/how people will provide input,and assurances that necessary support mechanisms will be in place.
For example,emphasizing that line managers will undergo extensive change management coaching to effectively guide their teams through transitions.
With strategic communication and involvement of key influencers,

(05:54):
leaders can build momentum and gain commitment to the journey ahead from those whose buy-in is mission critical (Kotter and Cohen,
2002).
Developing a Culture Transformation Roadmap Once internal alignment has been achieved,
organizations must work to develop a well-defined roadmap to guide the change effort.

(06:15):
In my experience,the most effective culture transformations are those built upon solid research combined with consultative input from cross-functional leaders.
A piecemeal or "fly-by-night" approach almost certainly sets efforts up to fail or fizzle out.

Some of the key elements I advise including in a robust culture transformation roadmap include (06:32):
Strategic alignment - Articulate clear linkages between envisioned cultural shifts and overall business strategy/priorities Change vision - Craft a vivid description of the desired future state culture and how daily work will be different Diagnostic assessment - Leverage cultural audits,

(06:56):
employee surveys to set baseline and identify current inhibitors Leadership development plan - Outline how leaders will evolve mindsets and model new behaviors Communications strategy - Determine ongoing content and cadence to socialize updates and wins Change initiatives - Detail flagship projects that reinforce new cultural ways of working Metrics and assessments - Establish KPIs to measure cultural shifts and solicit ongoing feedback Sustainability plan - Discuss how achievements will be sustained and culture continually evolved With clarity on goals,

(07:31):
timeline,resources required and change management approaches,
organizations are set up to proactively guide cultural evolution in a strategic yet adaptive manner.
Importantly,success relies on translating high-level plans into practical actions on a consistent,
organization-wide basis.

(07:51):
Implementing Culture Change Through Strategic Initiatives In my experience,
one of the most impactful ways organizations drive cultural transformation is by carefully designing cross-functional initiatives that are front and center of the business yet uniquely reinforce desired ways of working.
These "lighthouse projects" serve to embed new norms into day-to-day activities while simultaneously producing tangible business results.

(08:18):
For example,one tech company I partnered with aimed to shift from siloed teams to more collaborative ways of innovating.
Leaders launched an ongoing "Ideas Challenge" where employees voted weekly on promising concepts that then received rapid prototyping support.
This encouraged boundary-spanning discussions,idea-sharing across levels and a focus on continually solving customer pain points.

(08:43):
The initiative yielded a consistent stream of commercially viable opportunities that strengthened bonds between previously disconnected groups.
Similarly,a manufacturing client wanted to evolve from a risk-averse culture to one that embraced prudent experimentation.
Leaders launched an "Innovation Gym" program giving teams dedicated funding and support to test hypotheses,

(09:08):
take smart risks and openly discuss lessons learned together.
This initiative not only produced incremental improvements but cultivated an environment where failure could be turned into future success—a huge mindset shift.
In each case,leaders ensured initiatives were widely socialized,
resonated strategically and could organically spread new ways of collaborating,

(09:33):
decision-making and problem-solving across divisions over time.
Measuring business outcomes alongside cultural KPIs helped sustain backing and proved the power of alignment.
Sustaining Momentum Through Continuous Evolution While achieving desired cultural shifts is an important milestone,
the work is never truly complete.

(09:55):
Competitive advantage depends on continually refining and evolving one's culture to stay ahead of industry changes.
Sustaining transformational gains takes focused effort to anchor innovations,
address complacency and reinvest in evolving the organization.
In my experience, leading organizations take a few strategic steps.

(10:18):
First,successful cultural elements and learnings from initiatives become embedded into core HR processes like performance management,
recruiting and learning & development.
This anchors innovations into DNA.
Regular “stay interviews” also surface what’s working well and opportunities to strengthen connections between strategy and culture over time (Berry,

(10:42):
2013).
Leaders must also reinvigorate focus on cultural metrics to avoid complacency and identify where mindsets require “top-ups” through initiatives,
leadership town halls or external training/coaching.
Culture transformations are journeys, not destinations.

(11:03):
Finally,allocating funding to continually prototype and test new innovations keeps the organization and culture in a state of positive evolution.
Overall,sustaining momentum relies on integrating continuous feedback loops,
embedding enhancements broadly and reinvesting in cultural evolution as strategically as other business functions.

(11:26):
By viewing culture as a competitive differentiator,
organizations can stay ahead of shifting market needs year after year.
Conclusion In today's fast-paced,disruptive business environment,
culture increasingly determines an organization's ability to adapt,
collaborate,solve problems creatively,retain top talent and seize new opportunities faster than competitors.

(11:53):
While challenging,leaders who make a true commitment to understanding cultural barriers,
crafting a compelling vision of change,and strategically guiding a multi-year transformation stand to gain tremendous competitive advantages.
Through leveraging cultural assessments,change management best practices,
cross-functional initiatives,ongoing feedback and sustained investment,

(12:17):
organizations can thoughtfully shape workplace experiences and behaviors in a way that organically enhances business outcomes.
Culture,once viewed as a "soft" topic,deserves focused attention equal to product development,
marketing or finance.
I hope the frameworks and examples shared provide a practical starting point for leaders embarking on their own culture journeys.

(12:43):
The rewards of putting culture first are well worth the effort.