The shift to remote work, combined with regulations and restrictions, has fundamentally transformed the workplace in just a year. While technological advancements have kept pace, what’s happening to corporate culture? Andreas Kaufmann, who has been driving organizational development at PAWLIK since 2001, offers his insights.

For those who don’t regularly think about corporate culture, how would you define it?

In simple terms, it’s about what makes employees tick and the shared beliefs they hold. Strategy tells us what we aim to achieve, and organizational structures outline the processes to get there. But it’s the culture that breathes life into it all – it’s what makes the strategy take off. Many people dismiss corporate culture as “fluff” or a feel-good initiative, but that’s a misconception. A strong corporate culture directly contributes to profitability.

How long have you been working on cultural transformation, and what has changed over time?

I’ve been advising companies on cultural transformation for more than 20 years. My early work was in France, where I collaborated with international clients. Initially, our focus was on national cultures, but we soon realized that differences in corporate cultures within a single country often outweigh those between nations.

Can you elaborate on that?

We’ve worked on mergers &amp, uch as those involving Volvo and Renault Trucks, and discovered that the cultural differences between Sweden and France were smaller than the differences between companies within the same country – or even between departments within the same organization. Through this, we realized that structure, people, and strategy cannot function effectively without a cohesive, unifying culture. To paraphrase Peter Drucker: “Culture eats strategy for breakfast and organization for lunch.”

How important is cultural transformation to clients today? Has demand changed?

It has skyrocketed in our country, especially during the pandemic. All the key elements – strategy, organization, culture, and leadership – now need to be aligned more than ever.

What challenges are companies facing?

The challenges are diverse, but one major issue is the growing sensitivity around employees’ sense of belonging. For example, new hires who come into the office only once a week often know their colleagues only through virtual meetings. It’s difficult to foster a sense of connection or convey culture as a unifying force under these circumstances.

If you were to step in now, what would you recommend?

First, I would measure the relevant criteria. We’ve developed tools to assess factors like risk appetite, which is especially critical in times like these. Having data creates a solid foundation for meaningful discussions. Vague statements like “We need to be more open to risk” don’t cut it – the management team will just roll their eyes and say, “We’ve already read that in Harvard Business Review.”

The second big recommendation is: “Make it a C-Level priority.” Start at the top! This isn’t something you can delegate to an HR manager or a small project team. Without buy-in and active support from the executive leadership, these efforts are likely to fail.

Any additional recommendations?

The third is “Scaling” – incorporating this into the process early on to ensure a broad and lasting impact. You need to create a “sandbox” where teams can experiment and learn from their mistakes without fear. For example, hosting a “challenge night” where employees openly share and reflect on mistakes can be a powerful tool.

Many employees tend to cling to tradition, especially in uncertain times.

And that’s perfectly valid. Transformation doesn’t mean disregarding the past. It’s about acknowledging and respecting the old ways – recognizing that the previous culture had its purpose and value. The key is to identify which beliefs remain relevant today, which were right for their time but no longer apply, and which need to evolve. The challenge lies in making these shifts understandable and tangible. Only then can you create a genuine “sense of urgency,” the sense that “We need this change, let’s make it happen!” From there, it’s about applying the right tools to guide the process.

What role do managers play in cultural transformation, and what skills do they need?

Leadership is crucial, but it’s not the sole driver of cultural transformation – culture goes beyond just leadership. Managers must be willing to let go and allow their teams to experiment, even when they suspect something might not work. This can feel counterintuitive for managers, whose job has traditionally been to ensure everything runs smoothly. Watching someone make mistakes can be uncomfortable, but it’s a necessary part of fostering change. In addition to enabling experimentation, managers need to lead by example and embody the culture they want to instill.

What about employees who are naturally inclined toward change?

Many companies focus on engaging the “First Movers,” – those most eager to embrace change – assuming others will follow their lead. While this approach has its merits, there’s a risk that the First Movers may move too quickly and be dismissed by others as outliers or mavericks. I believe it’s more effective to support the “First Followers.” The “First Mover” are key for initiating and communicating change, but the “First Followers” drive its broader acceptance and adoption.

What role will cultural transformation play in the future, and what new challenges are on the horizon?

It will become more difficult to create identities, but these are very important.Its importance will only grow. The nature of work is changing, and organizations will need to adapt accordingly. One of the biggest challenges ahead will be fostering a sense of identity in increasingly fragmented work environments – where employees may work asynchronously, across multiple teams, with flat hierarchies and minimal affiliation. Creating a shared sense of identity will become harder, but it’s absolutely essential