Digital transformation: Managers must master cultural change!

Digital transformation: Managers must master cultural change!

The first volume of the “Digital Transformation & Innovation” publication series was published on April 7, 2025. The title of the book is “Leadership for Digital Transformation – Navigating the Journey”. This work, published by Springer Nature on January 25, 2025, offers in-depth insights into strategic leadership approaches that are crucial for companies in the digital age. Books are sold exclusively in cash and in the library of the Siemens Villa, Monday to Friday between 8 a.m. and 7 p.m., as card payments are not accepted.

The publication series is published by the BSP-Institute for Digital Transformation and Innovation (IDTI), under the direction of Kristina Bodrožić-Brnić, Prof. Dr. Volker Schulte and Prof. Dr. Thomas Thiessen. Various BSP lecturers contributed to the book, contributing their expertise to support companies on their journey to digital transformation. Further information on the content is available on Springer's website: springer.com.

Strategic relevance of digital transformation

Digital transformation is now a central topic in the agendas of many companies. However, some fundamental elements are not yet clearly defined. It turns out that digital transformation is not just a technological change. Rather, it requires a comprehensive consideration of a company's internal and external factors. For example, Alessandro Braga, CIO of Talent Garden, identifies six pillars that include both internal aspects such as people, processes and technology as well as external aspects such as customer relationships and product offerings.

The so-called “Digital Transformation Pyramid” includes three essential levels: strategy, execution and technology. Effective digital transformation programs must address at least two of these levels. Since strategy is crucial, it is emphasized that there should not be a separate “Digital Strategy”. Companies are required to evaluate the possibilities and impact of technology-enabled business models and ensure that execution is critical to transformation success.

Furthermore, discussions around digital transformation make it clear that continuous review and adaptation is required. Change management plays an essential role in increasing employee acceptance and commitment. The willingness of top management to embrace new technologies and innovations is essential.

Cultural transformation as the key to success

Changes in the status quo represent a challenge for many companies. An important aspect of successful transformation is the adaptability of managers. Professor Charles O’Reilly from the Stanford Graduate School of Business emphasizes that corporate culture plays a crucial role in the success of a transformation. The organizational realignment therefore includes central elements such as structure, culture and operations of a company.

Corporate culture can be defined by three core principles: values, norms and behavior. A vivid example is General Motors, where misconduct led to serious problems. Following the appointment of CEO Mary Barra, corporate behaviors were changed to redefine norms. To be successful in change, O’Reilly recommends the LEASH model, which includes leadership actions, employee involvement, customized reward systems, and the use of symbols to promote culture. Another example is Asahi Glass Company, where CEO Takuya Shimamura implemented the LEASH model to promote innovation and reduce resistance.

In today's companies it is clear that cultural transformation requires systematic changes in behaviors, norms and values ​​in order to successfully achieve corporate goals in the context of digital transformation. The willingness to change is therefore not just a question of technical implementation, but also a crucial cultural process.