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