Seven Distinctions between Cultural Change and Cultural Transformation

Change is constant.

Competitors come and go changing the competitive landscape.

Products and services are created and evolve.

If you don't like change, you're going to like irrelevance even less

General Eric Shinseki, Chief of Staff, U. S. Army

The one thing that is a constant in business is adaptation.  Adapt or crash...

Adaptation must be constant.  Corporate cultures adapt or their business models fail to thrive or fail altogether.  Cultural change is often forced due to some "external" economic impact - creating short and long-term employee engagement costs.  Cultural Transformation is a long-term "process" where the buy-in of employee team members plays a role.

The question is - "Are we talking about Cultural Change or Cultural Transformation?"  Is chnage forced or transformed through employee team member engagement?

From my research and experience, the differences between Cultural Change and Cultural Transformation may be described in the following "dimensions":

1. Internal or Externally-Driven - In other words is the culture transition through force, evolution, or constant gentle pressure? The more management or economic "force" required to make the corporate culture transition, the more likely the culture transition is Cultural Change. If employee team members are more "willing" - they will proactively listen to leadership and take part in the Cultural Transformation.
2. Duration of Culture Transition - The amount of time that a culture transition occurs depends upon the stimulae that are encouraging or forcing that adaptation. If economic forces or new management are forcing a culture transition within a short time frame, it is Cultural Change. The longer the period of time of culture transition, the more likely it is Cultural Transformation.
3. Belief - The lower the "belief level" in the organization's mission, vision, and guiding values, the more likely the culture transition is Cultural Change. The higher the "belief", the more likely the culture transition is internally-driven Cultural Transformation that comes as a result of employee team member engagement and active involvement. Therefore it is important to have employee team members who have the ability to believe in the mission, vision, and guiding values.
4. Learning Organization - The more an organization is committed to training and developing their talent and future leaders, the better equipped employee team members will be to making long-term Cultural Transformation a reality. Organizations that invest in training and development from a "reactionary" perspective in order to address "problem areas" reactively will be more likely to force corporate culture transition through short-term-oriented Cultural Change.
5. Low / No Transparency - If the corporate culture does not foster transparency and candor the result will be missed opportunity to create long-term Cultural Transformation.
6. Performance-based Compensation - If compensation is not directly tied to performance, "force" will be required in order to create lasting change. The result is Cultural Change.
7. Job Fit - The lower the overall "Job Fit" - the more likely "force" will become necessary in order to create the desired corporate culture transition. The more force - the more likely the culture transition is Cultural Change. Better Job Fit means employee team members are able to focus on doing what they need to do to get the job done and create the desired future through Cultural Transformation.

Cultural Change is the result of external forces from management and/or competitive threats. 

Cultural Transformation comes as a result of constant gentle pressure that is internally-motivated rather than externally-originated.

Cultural Transformation creates better-lasting, long-term results.

Questions?  866-988-RAIN (7246)

Now Go Maximize Possibility