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CULTURE AND CHANGE
Why Culture Matters and How It Makes Change Stick

Cultural Outlook

84%
believe culture is
critical to business
success

60%
think culture is more
important than strategy
or operating model

ONLY

51%

35%

think a major overhaul
is currently needed in
their culture

think their company’s
culture is effectively
managed

Who’s driving the change?

Who IS in charge of
culture change?

Who SHOULD
BE responsible
for culture
change?

59% 14%
claim the CEO
and other top
leaders are
currently
responsible for
change

43% 42%
say CEO and
other top
leaders

say all
employees

Why doesn’t change last?
Top
reasons
employees
resist
change:

say all
employees are
currently
responsible for
change

Top barriers
to change:

Are skeptical
due to past
failed change
efforts

Competing
priorities
create change
fatigue

Systems,
processes,
and incentives
do not support
change

Do not feel
involved in the
change
process

Do not
understand
reasons for
change

48%
agree – critical
capabilities are not in
place to sustain
change

Creating sustainable change

67%

Focus on a
critical few
behaviors with
the most
cultural impact

ONLY

54%

think that “change
programs” have a
positive impact

Sustaining
change:

of organizations are
capable of
sustainable
change

Expand change
capabilities
beyond leadership
and
communication
alignment

Activate
informal levers,
such as peer
networks and
storytelling

Global Snapshot
How various regions view culture and their ability to create lasting change

CRITICALITY

IMPORTANCE

SUSTAINABILITY

How critical is culture to
business success?

How important is culture in
relation to strategy and
operating model?

Are your changes
sustainable?

North AMERICA

CENTRAL AMERICA

Middle East and Africa

87%
61%
56%

88%
58%
70%

82%
55%
40%

Critical
Most Important
Sustainable Change

Critical
Most Important
Sustainable Change

Critical
Most Important
Sustainable Change

Geographies
Significant response
levels from many
regions:

44%
23%
17%
7%
5%
4%

North America
Europe
Asia/Australia/S. Pacific
Middle East/Africa
South America
Central America

SOUTH AMERICA
84%
57%
60%

Asia, South Pacific, and Australia
84%
66%
60%

Critical
Most Important
Sustainable Change

Europe
79%
57%
40%

Critical
Most Important
Sustainable Change

Critical
Most Important
Sustainable Change

Survey Demographics

2,200+ 53%

Corporate Title

respondents

Company Size
72%

worked in companies
that had 0-10,000
employees

Industry
15%

34%

Retail

Other

of respondents were
management level or
above

12%

Consumer

C-Suite level

17%

15%

Director level

24%

Manager level

8%

12%

28%

Large 10,000+

Engineering

7% 9%

Energy

Healthcare

Finance

Find out more here:
www.booz.com/cultureandchange
Copyright 2013 Booz & Company Inc. All rights reserved.

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Infographic: Why Culture Matters and How It Makes Change Stick

  • 1. CULTURE AND CHANGE Why Culture Matters and How It Makes Change Stick Cultural Outlook 84% believe culture is critical to business success 60% think culture is more important than strategy or operating model ONLY 51% 35% think a major overhaul is currently needed in their culture think their company’s culture is effectively managed Who’s driving the change? Who IS in charge of culture change? Who SHOULD BE responsible for culture change? 59% 14% claim the CEO and other top leaders are currently responsible for change 43% 42% say CEO and other top leaders say all employees Why doesn’t change last? Top reasons employees resist change: say all employees are currently responsible for change Top barriers to change: Are skeptical due to past failed change efforts Competing priorities create change fatigue Systems, processes, and incentives do not support change Do not feel involved in the change process Do not understand reasons for change 48% agree – critical capabilities are not in place to sustain change Creating sustainable change 67% Focus on a critical few behaviors with the most cultural impact ONLY 54% think that “change programs” have a positive impact Sustaining change: of organizations are capable of sustainable change Expand change capabilities beyond leadership and communication alignment Activate informal levers, such as peer networks and storytelling Global Snapshot How various regions view culture and their ability to create lasting change CRITICALITY IMPORTANCE SUSTAINABILITY How critical is culture to business success? How important is culture in relation to strategy and operating model? Are your changes sustainable? North AMERICA CENTRAL AMERICA Middle East and Africa 87% 61% 56% 88% 58% 70% 82% 55% 40% Critical Most Important Sustainable Change Critical Most Important Sustainable Change Critical Most Important Sustainable Change Geographies Significant response levels from many regions: 44% 23% 17% 7% 5% 4% North America Europe Asia/Australia/S. Pacific Middle East/Africa South America Central America SOUTH AMERICA 84% 57% 60% Asia, South Pacific, and Australia 84% 66% 60% Critical Most Important Sustainable Change Europe 79% 57% 40% Critical Most Important Sustainable Change Critical Most Important Sustainable Change Survey Demographics 2,200+ 53% Corporate Title respondents Company Size 72% worked in companies that had 0-10,000 employees Industry 15% 34% Retail Other of respondents were management level or above 12% Consumer C-Suite level 17% 15% Director level 24% Manager level 8% 12% 28% Large 10,000+ Engineering 7% 9% Energy Healthcare Finance Find out more here: www.booz.com/cultureandchange Copyright 2013 Booz & Company Inc. All rights reserved.