Transformational Culture vs Cultural Transformation

Are Your Leaders Equipped to Lead The Cultural Transformation You Need in 2025

According to research by McKinsey, 70% of cultural transformation programmes fail!

In a BANI world where organisations are striving for engagement, productivity, innovation and adaptability, most cultural transformation efforts are falling short.

The question isn’t so much whether cultures need to transform, but whether leaders are equipped to lead and sustain a transformational culture!

The Difference Between Culture Transformation and a Transformational Culture?

Culture Transformation refers to the process of changing or shifting from an existing culture (values, behaviours, norms) to a new (better) culture that will deliver against organisational goals. Different things can trigger the need for a culture transformation programme or process, such as new leadership, new ambitious goals, a merger or acquisition, and other macro or micro environmental changes.

A Transformational Culture, on the other hand, refers to the ongoing DNA of an organisation in which people are continuously and consistently inspired to improve and innovate, one in which creativity and personal growth thrive, one in which the values of the organisation are inspired, and role modelled by the behaviours and attitudes of everyone, including and especially by the most senior leaders.

There is of course a strong inter-relationship. A cultural transformation programme is often a step towards creating a transformational culture. For example, an organisation wanting to improve employee engagement and motivation may embark on a cultural transformation to shift from an annual performance appraisal system to one of continuous personal development, ultimately aiming for continuous personal development to be embedded as the norm. But! here is where the culture transformation programme can fail – if the NEW values, norms, behaviours are not continuously and consistently role modelled and executed, the programme is destined to fail.

Why Do Culture Transformation Programmes Fail?

There are many reasons why culture transformation programmes can fail, here we’ve listed the main protagonists:
1. Lack of conviction and commitment from the CEO
2. Overwhelming, complicated programmes that lack clear, measurable goals
3. New behaviours, norms, processes not being consistently role modelled by leaders
4. Top down programmes that ignore employee involvement
5. Failure to effectively manage change
6. Failure to sustain the effort required to shift to a new norm

As we kick off 2025, organisations that invest in developing future-ready leaders – equipped to create and sustain transformational cultures will be the ones to thrive

Transformational cultures demand leaders who have extraordinary levels of self awareness and emotional intelligence, are adaptable & open minded, have exceptional coaching, mentoring and communication skills, and of course are visionary thinkers. No small ask!

At Full Potential, it’s integral to us to empower leaders to build and sustain transformational cultures. Read more about how we can help here: Transformation Strategy – Full Potential Group