Corporate values - an underestimated factor in change management

"Theories of planning reflect an objectivity to the holders of power that seduces them into suppressing participation with its changeable unpredictability." (Lucius Burckhardt). Personally affected by the now second reorganization of his former employer - a medium-sized SME active in the health care sector - the author of this article stumbled upon this quote. In the context of a master thesis on the topic of "Change Management" he processed his experiences.

Corporate values - an underestimated factor in change management

A lot was and is in motion, and there is always talk of "change management", "participation", "corporate values", "living by example", or even the famous "leading by example". Only the practice or the experience of the employees showed the exact opposite of all that was proclaimed and - even worse - exemplified by the top management.

 

So I used my professional situation to combine the practical with the useful and dealt with the question of which concepts of change management need to be applied by managers in order to influence the corporate values of long-term care organisations in a sustainable, positive way.

Introduction and methodology
In order to be able to answer the question about a possible connection, I chose a literature search and looked in the most common databases such as Pub Med, Cochrane Library, ScienceDirect, WISO, EconLit and ERIC for significant studies and articles on the topic, in order to then reduce the studies found to the ten most relevant studies for the research question in a reduction process. Following the literature search, a questionnaire was developed on the basis of the findings and two experts from the field were interviewed on the topic in qualitative interviews.

 

Change management forms the basis of all change. It describes techniques and concepts that deal with the "human" factor and its influence on change, so that the desired changes lead to success (Keuper et al. 2007, p. 11ff.). Despite the knowledge available, most change management projects fail or are not sustainable. Based on this, I made the initial hypothesis in my work that managers do not adequately apply this existing knowledge, the theories, concepts and techniques of change management. The disregard of the theories leads in practice to failed or unsustainable change management projects. If the existing theories, concepts and techniques were applied correctly by managers, the logical consequence would be sustainable results from change management projects and company values that are actually lived.

Results and findings
Managers play a key role in the change processes of companies. The mere restriction of change management projects to a few concepts from the theory of change management is not the success factor when viewed in isolation. In the context of my Master's thesis, I was able to prove that it is the connection between the company values, the corporate culture and a correspondingly congruent leadership that leads to a sustainable implementation success of change management projects.

 

Particularly in change processes, it is the human factor that plays a decisive role in the success or failure of a company with its values, actions, attitudes and ideas (Keuper et al. 2007, p. 11ff.).

 

The culture of a company can be seen as an anthropological metaphor, as a value framework that serves to represent the company in its operating environment and to offer employees a meaningful objective. A change of organizations within the framework of change projects must therefore take place with the inclusion of the applicable cultures, norms and values of a company.

 

Some of the studies analysed address the role of managers in change management. They show that a possible lack of leadership skills among managers can be the cause of failed or unsustainable change projects. Thus, it is mainly the managers who massively influence the company and work culture with their management culture and their understanding of management.

Corporate values: Difference between desire and reality
Corporate values should provide employees with a framework for action and be a reliable point of reference, especially in turbulent times. For this to be the case, it is of absolute importance that the corporate values are clearly defined and primarily lived out by the managers.

 

The experience of the experts interviewed shows that there is often a difference between the postulated and the actually lived corporate values. This difference can trigger great insecurity or even a feeling of fear among employees. This in turn can lead to a failure of change projects or the desired sustainability. In essence, it is a question of a company taking a very targeted look at its values and entering into negotiations with its employees about these values. There should be a process of discovery, a struggle for a uniform interpretation of the postulated values.

 

The experts agree on this point and confirm on the basis of their practical experience that the different interpretations are often due to a lack of communication or an insufficiently honest and in-depth discussion of corporate values. They point out that managers may well be of the opinion that they are acting in the spirit of the postulated values, but the employees interpret something completely different from the leadership behaviour they experience.

 

Based on the findings of my research, it seems clear that factors such as independence, commitment, loyalty, participation, autonomy and acceptance have a positive impact on change projects and their sustainability.

Recommendations for action
The implementation of the postulated corporate values must be guaranteed by the top management through a clear example. In this way, change projects and corporate values are interdependent.

 

"A company's culture can be seen as a framework of values."

 

The following insights and tips for practice result from my work:

 

  • Open and honest discussion of the company's values: The delegation of this "work" to external consultants or marketing companies, without the involvement of the employees, prevents identification with the values.
  • Clear definition of company valuesScholarly research on the subject shows that corporate values are often phrases rather than clearly formulated values. This leaves a great deal of room for interpretation. Who understands what by the postulated values? Corporate values must be defined as clearly as possible, if necessary with examples, and must always be part of the communication culture. Decisions should be made on the basis of the corporate values.
  • Take the premises of change management seriously: It is undisputed today that no change can be implemented without resistance. The question that management or a leader should ask themselves here is how to deal with this resistance. The corporate values should again serve as the basis for dealing with them.
  • Courage for "own" in change management: The statement of the second expert that he has never consciously applied concepts of CM and still came to very positive results shows me that it can be important to have the courage to go one's own way. This can mean to listen more to intuition than to rely on learned theories.
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