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Corporate Culture Change Management

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 Economic Alternatives, 2019, Issue 2, pp. 296-312

Corporate Culture Change Management

Yanica Dimitrova*1 and integration are the mechanisms by which

the organization is adapted to the business
Abstract environment surrounding it, and the more
flexible and dynamic the organization is, the
Corporate culture is a construct of more competitive it is. The above-mentioned
substantial importance to enhancing the requires the existence of an appropriate
competitiveness of the modern business corporate culture directly related to corporate
organization. Corporate culture supports the strategy and structure of the organization.
adaptation of the organization to the dynamic It is necessary to mention the theory of the
business environment requirements that in learning organization (Senge,1990), aimed
turn impose the implementation of changes towards resolving problems, which provide
in corporate strategy and organizational enhancement of its competence (Daft, 2007).
structure. To be sustainable, a modern While examining the organization through the
business organization should adopt the prism of a systemic approach, it is important
idea of change and embody the plans and to strike a balance by which harmony is
policies for development. On the example of sought between opposing influences that
two companies - large and small - realizing come from external and internal organization
business activities in Bulgaria - offers a vision environment. The theory of the organization
for change management of corporate culture. as a complex adaptive system focuses on
Key words: corporate culture, change that the most effective way that organizations
management, competitiveness implement their strategies “on the edge of
JEL: M14 chaos” - i.e - the dynamics between flexibility
Introduction and stability. For maintaining the balance, they
need the implementation of frequent micro

T he modern organization could be

studied as an open system and as a
complex adaptive system (Dimitrova, 2012;
changes that generate significant strategic
changes leading to increased competitive
performance (Brown and Eisenhardt, 1998).
2013). As an open system, it carries on constant The complex theories apply to organizations
interaction with the surrounding business experiencing the impact of changes in the
environment and its survival depends on the external environment that exceed those that
ability to provide adequate „responses“ to occur in the internal environment. In a turbulent
various trends and influences. Differentiation business environment, organizational survival
is under development - not the planned
1 
Yanica Dimitrova is Associate Professor, PhD in the
University of Library Studies and Information Technologies, actions (McKelvey, 1999). Such organizations
Sofia, Bulgaria are characterized by a decentralized and
296 Economic Alternatives, Issue 2, 2019
 Articles
non-hierarchical structure; therefore the and artifacts, according to Schein (1985) -
mechanisms that connect their members are corporate buildings, corporate logo, dress
corporate culture and the related construct of code, corporate jargon, stories, and myths. An
organizational identity, supported by effective interesting assumption is that the changing of
communication practices. Self-organizing corporate culture happens on a subconscious
systems are an alternative to organizational level within elements themselves (not among
management based on control and strict them) that characterize the own corporate
rules. The change in these organizations is culture (Goffee and Jones, 2001).
the driving force. Self-organizing systems The corporate culture and management of
most often occur as a result of organizational the organization are mutually determined. The
learning, adaptation, innovation. corporate culture and communications of the
Organizational learning (Argyris and Schon, organization are also correlated (Dimitrova,
1996) is regarded as a single - loop learning, 2012). Researchers of the organization‘s
related to corporate development, double- culture see it through the prism of three
loop learning - associated with organizational paradigms (Martin, 2002) - integration,
transformation and triple-loop learning, which differentiation, fragmentation; and three
related to the reflection of the beliefs, values, approaches - interpretive, functionalist and
thinking - in how they are connected to the critical.
actions of the members of the organization There are different models to explain and
and their ability to alter the corporate strategy. „visualize“ corporate culture - Schein (1985);
Hatch, (1993), Johnson and Schoeles, (1999);
Literature Review Denison et al. (2006, 2011), many typologies
Corporate culture is a construct essential - Hofstede et al., (1990); Cooke and Lafferty,
for the successful existence of the modern (1989); Cameron and Quinn, (1999), O‘Reilly
business organization. Corporate culture et al, (1991), Ashkenasy et al., (2000), etc.
steers the conduct of members of the (cited in: Dimitrova, 2012).
organization and gives meaning to the The above highlights the diversity of
organizational reality. The corporate culture the construct on corporate culture, its
has a „visible“ and „invisible“ stage; the various manifestations and functions in
second lends itself much more difficult to the organization and its importance to the
change. Less visible and deeper level “refers company’s overall successful existence. Not
to the values that are shared by the people accidentally, corporate culture is defined
of the group and that tend to persist even in brief though comprehensive as „the way
when group membership changes“ (Kotter & of doing things around“ and „social glue“,
Heskett, 1992:4). According to Edgar Schein representing the solder between the members
(1985), on the „invisible“ level of unconscious of the organization.
assumptions (taken-for-granted assumptions), Corporate culture is directly connected with
which determines the perception and the the images which the different stakeholders
relations of the members of the organization, of an organization have of it. Hence corporate
usually subconsciously measurement is culture change affects the corporate image.
defied, though they are essential to the The corporate culture helps improve the
nature of corporate culture adopted by competitive advantages of the organization
the organization. On the “visible” level of (Dimitrova, 2012) and requires competent
corporate culture are manifestations of culture management to secure the opportunity
297
 Articles Corporate Culture Change Management
not only to survive but also to enhance behavior rewards, harmonized with the
organizational performance in the environment changed culture. A mistake by leaders would
in which it operates. The change of corporate be the assumption that a change in corporate
culture, understood as organizational change, culture will automatically lead to a change in
is a critical aspect of the management of a individual behavior (Nadler, Thies and Nadler,
modern organization. The complexity stems 2002), which highlights the importance of
from the fact that corporate culture is a existing organizational trust and plays a
“double face” construct. On one hand, it is vital role in the successful adoption and
oriented towards maintaining the status quo, implementation of change.
which support stability. On the other, it is In the field of organizational studies
enshrined in the trend towards change that a distinction is made between planned,
helps the adaptation of the organization to emerged and contingency occurring
the dynamics of the environment. To retain changes. The planned change is a result of a
its cultural identity, the organization should deliberate approach, targeted to a particular
be changed (Gagliardi, 1986). The change program of the management of change
of the corporate culture is directly related to actions. It is understood as a project of top
the shift of the corporate strategy and to the management and is usually associated with
improvement of the organizational structure. organizational development. The emergent
For the realization of successful change, change is an unpredictable and nonlinear
a significant role is played by the company process of interaction between organization
management. The change is usually viewed as and the surrounding business environment.
a project on top management, but if members The contingency occurring changes are
of the organization do not perceive this idea, considered nonlinear ones generated in the
its implementation is doomed to failure. The process of looking for opportunities to adapt
company’s employees should be involved in the organization to the changes required by
the implementation of change (Cartwright the dynamics of the business environment.
and Cooper, 1993). The communication of the As a result of the examination of contingency
change should be maximally open about the occurring changes the Contingency approach
objectives, stages of implementation and the to change has been developed which, in
future of the employees. The resistance to line with the planned changes, requires the
change is caused by the uncertainty stemming establishment of an implementation plan for
from the threat of deterioration in status, job change and for the respective management
loss or reduction in income. actions. The proposed activities must be
Sometimes it is possible that the change consistent with the circumstances giving rise
be adopted out of fear of sanctions, or in to the need to implement change.
an attempt to put pressure or to manipulate The processual approach to the change
the behavior of employees, for example by is seen as a result of the actions of the
using opinion leaders. Consequently, when empowered in the organization and with the
the change is completed, it is necessary to different policies applied to it, on the one
apply new practices in harmony with it - for hand and, on the other - by continuously
the implementation of various organizational implementing small changes, leading to the
processes, techniques, for selection and occurrence of organizational transformation.
socialization in the organization, career and The implementation of the processual
professional development, organizational approach has required the presence of
298 Economic Alternatives, Issue 2, 2019
 Articles
critical situations in the organization itself / for corporate culture is changed. As we have
example, Parmalat, Tyco, Enron and Arthur already mentioned, corporate culture
Anderson/. and management of the organization are
The scales of the change are different - mutually determined.
from small, so-called incremental, to much yy An established organization decides to
larger transformations. Incremental changes enter new markets and feels the need
reinforce improvements. They constantly to change its strategy, culture, and
develop over time and lead to the generation structure order to increase competitive
of positive things for the organization (Weick advantages.
and Quinn, 1999). This type of changes is yy The next step is when the organization
embodied in the management practices of the decides to change the object of its
organization. They can occur independently activity completely.
in one department or another and they can There is a „mixed“ option - between
possibly take the organization to a new level of incremental change and transformational
competitiveness through the implementation change - punctuated equilibrium. This type
of significant changes. To a large extent this of change occurs after periods of fluctuation
type of changes ensures the sustainability long after the implementation of incremental
of the organization. The above-mentioned changes and brief moments of transformation
requires the existence and appropriate (Brown and Eisenhardt, 1997). In the process
management of corporate culture which in turn of searching the right balance between
implies acceptance of the idea of constant the change as a constant variable and
change, improving creativity and innovation, transformational change the possibility is
which supports the competitiveness of the detected that the organization should achieve
organization of existing and new markets. its business “on the edge of order and chaos”
The change which leads to transformation (Brown and Eisenhardt, 1997), which supports
is defined as „strategic“ and „revolutionary“ increasing its competitive performance
and refers to organizations that encounter through the possibility of realizing innovation,
challenges which redefined corporate culture this option becomes its competitive
and related constructs of corporate and advantage. Eric Abrahamson (2004) coined
organizational identity and corporate image, the term “dynamic stability”, which is the
necessitated by the turbulence of the business simultaneous introduction of incremental and
environment. For such organizations, the idea transformational changes at different levels in
of small, incremental change is not suitable different periods of time.
(Hodges and Gill, 2014). The transformational For successful change implementation
changes required the change at the deepest Beer and Nohria (2000) recommended finding
level of corporate culture - that of underlying a balance between two different approaches
assumptions (Schein, 1985) and total paradigm - Theory E and Theory O. Theory O is directly
shifts (Johnson and Schoeles, 1999). related to corporate culture, promoting
The following types of transformation the development of human capital of the
(Flamholtz and Randle, 2011, cited in Hodges organization and seen as directly linked to the
and Gill, 2014) can be outlined: existing organizational trust and commitment,
yy When an organization moves from the the identification with it and the effectiveness of
phase of entrepreneurship to phase of corporate communication and communication
professional management, we noted that practices of management. Their combination
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 Articles Corporate Culture Change Management
is difficult because Theory E focuses on the Web serves as an instrument for corporate
„hard“ factors, Theory O – on the „soft“ factors culture diagnostics through:
finding the balance requires serious skills to Situation analysis, which answers the
competently manage change and managing question of what is the current status of the
the changed organization. The successful organization. The cultural network provides
implementation of change in the context an understanding of the basic assumptions
of the balance between the two theories and beliefs around which the essence of the
ensures the sustainability of the competitive organization is shaped.
advantage of the organization. The successful Policy and strategy making of the
implementation of change in the context of organization which displays direction
the balance between the two theories ensures development. It reveals how underlying
the durability of the competitive position of the assumptions and the beliefs support the
organization. The organization must be flexible strategy when the conditions for realization of
towards the adoption and implementation of change are in place.
change – it should be future-oriented to the Organizational Implications, which is
provided business opportunities for creativity associated with the need to change specific
and innovation, removing various restrictions values related to organizational change and
- hierarchical, communication, physical, to the preservation of others.
managing change through people involved
Change Management is focused on
in thereof. Changing the corporate culture
organizational parameters that must be
purposes make it more receptive to the idea
changed in order to implement strategic
of ​​change, change as an integral part of the
change.
essence of the organization.
For the purpose of this research we will Monitoring and Evaluation.
introduce two models of the corporate culture Heracleous’ study on the realization of
change:
organizational change identifies four basic
Model of Heracleous (2001) parameters that must be available for the
successful implementation of change:
Heracleous, 2001 (cited in Alvesson &
yy Active management of organizational
Svenningson, 2007) built his model based
change through effective leadership
on the Cultural Web model (Johnson and
through the implementation of the clear
Schoeles,1999) and ideas of the model of Schein
communication program, meetings,
(1985) associated with the understanding
interviews with employees to understand
of corporate culture as construed by deep
their attitudes to the switch and the
underlying assumptions reflected in values
introduction of the new corporate culture.
and beliefs and manifested through artifacts.
The notion of Heracleous (2001) for the yy Empowering target groups for which
realization of lasting organizational change the change is intended that are to be
is related to the disclosure of underlying included in the planning process.
assumptions and their expression through yy Implementation of communication that
the artifacts of organization (defined as sub- helps the clear understanding of efforts
systems): symbols and power structures, to change.
communications, control systems, stories, yy Creating opportunities to acquire new
myths, routine duties. The model Cultural skills.
300 Economic Alternatives, Issue 2, 2019
 Articles
Another model for realizing the change Accelerators:
of corporate culture and its relationship with
organizational change is John Kotter’s model. 1. Creating a sense of urgency to ‘Big
opportunity’;
The Model of John Kotter (2012) 2. Establishing and promoting the
John Kotter (2012) builds upon its Eight development of Guiding Coalition;
Stage Process for Creating Major Change 3. Creating a vision for change and strategic
(1996), emphasizing the fact that hierarchical initiatives that helps to achieve the “Big
nature and the new “network” nature of most opportunity”.
organizations jointly initiated the idea of 4. Communicating the vision and change
major changes and implemented them. Kotter to create a group of volunteers for its
believes that the hierarchical nature of the introduction - the sense of urgency is the
organization supports evolutionary change cornerstone around which the strategic
expressed in the gradual development of rationality and the real emotional possibility
the core business, and the “network” is are constructed.
driven by the ideas of the members of the 5. Promote the achievement of the vision
company with creative thinking that was and support the implementation of the
trying to implement innovative approaches action by removing barriers and encouraging
to bringing the organization to a new level of “networking”.
competitiveness. In unison with the above said,
Professor Kotter introduced five principles 6. Create (and celebrate) of the
and eight “accelerators”. achievements in a short period.
7. Sustain acceleration - there is no denial
Principles: of the pursuit of the vision, it is important to
1. People can generate a change that is not remember that through attempted to realize
necessarily derived from a known focus, i.e., the learning organization, and never stating
it requires a shift in perspective. It is needed the successful conclusion too early.
the presence of more “change agents”. 8. Need to institutionalization of the
2. The members of the organization can strategic changes in the corporate culture.
adopt new attitudes and not be obliged to
implement change. Method
3. The actions to be “dictated” by reason In the example of Beer and Nohria
and emotion, not only by reason. (2000), the author of the article developed
4. Much more significant emphasis the methodology for presenting the
should be put on leadership rather than multidimensional aspects of change in the
management. context of the quest for the balance between
5. Inspiring collaboration between the Theory E and Theory O. The methodology has
hierarchies and “networking”, the only been applied relevant to the current empirical
accent of increasing emphasis on hierarchy. study.

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 Articles Corporate Culture Change Management

Table.1. (Corporate Culture Scope of Change in the context of Theory E+Theory O)

Corporate Culture Theory E Theory O Theory E + Theory O
Change Scopes

Companies must be oriented The change encompasses

Organizational Strategy, structure, financial toward perception and the strategy, the structure, the
scope indicators realization of changes; training in corporate culture and the resulting
the context of change. consequences.

Apply strategies related to Priority for the companies must be

marketing mix management, Integrated marketing successful branding of different
Market scope competitiveness, entry into communication strategies markets and increased competitive
new markets performance.
Companies should encourage the
Organizational learning,
Innovation scope Planning, product/service, creation of new business models,
knowledge management, R&D,
manufacturing ambidextrous organization; adopt
open innovation and manage an innovation culture.
They need to dealing with
uncertainty and ambiguity.
Reduce resistance to change; They need the realization of
Communication ROI of communication to persist and encouragement communication audits; enhance
scope programs of the involvement of members security; increase trust.
of the organization in the
implementation of the change.

Corporate culture diagnostics tools

Monitoring and Clear accountability for Measuring and reporting the -The Balanced Scorecard (Kaplan
measurement financial performance; impact of change on key and Norton); Sink and Tuttle
scope growth indicators stakeholders. (1989), etc.

(Source: Author, adapted from Beer and Nohria, 2000)

With a view to “visualizing” changing work, the examination of samples of physical
the corporate culture in an organizational artifacts – sharp details and elements of their
environment, two case studies of real production, conversations with employees
companies – a large and small one – will were also used. The survey was conducted in
be presented that realize their business the period 2015-2017.
activity in Bulgaria. The study for the small company - VB
For large Company X, in-depth interviews Studio Ltd. - is based on a communication
were conducted, with open questions,
audit, three in-depth interviews, and open-
with representatives of top management
ended interviews with co-managers and
of the company - executive director, head
of human resources, and head of the PR employees, based on the model of Johnson
department. The survey is complemented and Schoeles (1999) company culture
by a review of documents and internal diagnostics and was conducted between
editions of the company, its website, and 2014 and 2018. The used method is content
media publications - online and printed. The analysis of the publications from and to the
method of direct observation, the nature of VB studio - on their website, their presence
302 Economic Alternatives, Issue 2, 2019
 Articles
in social media, official announcements, All processes are now integrated into the
comments from clients and partners. system of total quality management, product
The case study method is best suited safety, an environmental management system
to the particular research because there is for health and safety, thereby increasing
qualitative research. the Company‘s competitiveness in both the
The first company Company “X“1 SA is domestic and international market.
foreign-owned, and we are looking at the
Structure of governance:
change that occurs after its acquisition.
VB Studio Ltd. is a small company with Company “X” SA has a two-tier
Bulgarian ownership. Characteristic of it management system. It is a public company
is that it is outlived successfully transition and strictly obey the rules of good corporate
from entrepreneurial period to the period of governance - strictly and consistently apply
professional management and now faces the the principles to guarantee and protect the
need to implement change, with the goal of rights of shareholders and their equality.
entering new foreign markets to enhance the Account the rights and interests of all
overall competitive performance. company stakeholders - It must be timely
and accurate information about the financial
Company “X” SA results, ownership, and management when
necessary. The management of the company
Current state and history of the complies with the legislation and implements
company effective management control over activity.
The manufacturer for glass packaging Corporate culture
Company “X” SA is one of the 20 largest
public companies represented on the The Goals of the company are:
Bulgarian Stock Exchange, and one of the
100 largest companies in Bulgaria. Company The improvement is an essential aspiration
“X” SA is a member of the Group”Z” and a of company members. Its main commitment
leading manufacturer of high- quality glass is:
packaging both in Bulgaria and the Balkan yy The supply of high-quality glass packaging
Peninsula. The company operates through a to customers in Bulgaria and abroad;-
certified system for quality management. Competent and proactive response to
In 1997, „ Group X“ SA - Greece took a the market trends;
strategic decision to invest in the production yy Staff motivation through care, training,
of glass packaging in Bulgaria through improving the working environment and
participation in the privatization of two ensure the adequate system for internal
Bulgarian glass plants - in Sofia and Plovdiv. communication of the company;
In 2004 The Group purchased the plant in yy Honest partnerships with customers and
Novi Pazar that produces glass products for suppliers, concern for consumers, which
the household. requires maintaining sufficient contact
The company‘s development can be with them;
traced through the introduction of new yy Ensuring environmental behavior by the
improvements with a focus on ensuring company and by appropriate investments;-
sustainable production quality. Compliance with national and
international legislation related to the
1 
It is a fictive name. activities, and any other requirements
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 Articles Corporate Culture Change Management

that the company has accepted to yy Maintaining a high and efficient

observe; communication system in the company;
yy Improving financial management; Implementation and operation of programs
yy Image and appropriate action of a in line with the concept of Corporate
responsible corporate citizen. Social Responsibility; promote and achieve
The corporate policy, adopted by the the commitment of the members of the
company, has been focusing on product organization with the objectives of the policy
quality and its safety, a strong commitment on quality, safety, environmental protection
to environmental protection and health of and human health and safety at work.
employees and members of the public to Corporate culture change
occupational safety. The values enshrined
After the acquisition of the ownership
in the corporate culture of Company “X” SA,
of two factories - in Sofia and Plovdiv,
correspond directly to the company’s business
from Group “Z” is done and the corporate
strategy, which is focused on:
culture is changed. The new owners adopts
yy continuous improvement of the the created by “Z” corporate culture but
competitive advantages of the company,
retains the positive practices of the previous
both on the domestic and international
one. Choose a longer path for change. It is
market
important to note that the management of
yy satisfying the highest customer Group “Z” decided not to lay off employees,
requirements for high quality and hiring completely new staff. The new owners
safe products and communicate with managed to “earn” working with the help of
customers and partners in a continuous
competent communication program. Clear
dialogue and availability of feedback to
and consistent communication alongside co-
ensure the creation and maintenance of
trust between the organization and its emphasizing feedback is the way through
key stakeholders; which changes in staff members’ attitudes
are achieved. The process is slow and needs
yy creating mechanisms which facilitate the
patience, but it assists the implementation of
realization by the company’s employees
the changes. The communication program
to the importance of strict compliance
with the procedures in the company; is focused mostly the optimizations to the
enterprise and benefits for its employees.
yy Compliance with the norms of national In introducing and implementing corporate
and international laws that relate to the culture change, training for employees by
Company, and any other requirements
internal experts and by an outside consulting
that Company “X” SA has agreed to
firm were conducted. The emphasis in training
follow;
falls mainly on the importance of so-called
yy Integrity planning with customers and “soft” skills. Good tactics in the implementation
suppliers, concern for consumers of the change in corporate culture, Company
and the implementation of effective “X“ SA is dealing with the informal leaders of
communication with them;
the groups in the company, which significantly
yy The proper attitude about the staff facilitates the adoption and diffusion of new
training professional development, corporate culture. Employees are won and
motivation, and safety of company provided opportunities for training, and the
employees; introduction of new production technologies.

304 Economic Alternatives, Issue 2, 2019

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For those working in the company today by the new, higher requirements quality. The
specialized training abroad are regularly held. nature of training to enhance the skills and
Regarding building new corporate culture competencies also changed. Following the
owners – Group “Z” - has achieved significant acquisition of the company by Group ”Z”, the
results: in team building, clear communication quality of personnel is much improved, the
policy, highlighting a serious concern for company employs more engineers and mid-
people, the practices of recruitment. The level professionals who have very excellent
progress in the company has been achieved knowledge of English.
and maintained with hard work and a strong The next significant organizational change
desire for success. The management in the company came in 2004 when the last
group focused on training for staff - a fact merger between factories in Sofia and Plovdiv
that has strong motivational aspect and was implemented. External consultants
shows the existence of a corporate culture prepared the presentation and successful
oriented towards the development of human implementation of change communication
resources, increasing productivity, and hence program. They developed a comprehensive
- the competitive advantages of the company. plan change indicating what and in what
The members of the company show a time limit the improvement of organizational
clear understanding of its objectives, which processes should be implemented.
focus on the joint efforts of employees and The corporate culture of Company “X”
management to continue to be the market SA represents an amalgam of imported (in
leader that implements business activities. the change of ownership) and keeping the
Understanding the purpose of the company is positive practices of the previous one. The
achieved by changing the policy for managing changes (supported by the communication
human resources. After the organizational program to change the corporate culture)
change that is directly related to the change in refer mainly to optimization of production, new
the corporate culture itself, personnel selection approaches for improving the knowledge and
for working for the company is taking place in skills of employees, emphasis on teamwork,
a new and different way, changing the criteria new rules for working with clients.
and requirements necessary initial knowledge

Table 2. Company ” X” SA
Corporate Culture
Theory E Theory O Theory E + Theory O
Change Scopes
Change programs and staff
Policies, procedures, actions and
Two-tire management system; motivation to embrace the change;
image of a good corporate citizen.
Public company Honest partnership during change –
Organizational The new values of corporate culture
not lay off employees.
scope correspond directly to business
Top management performs Training for employees, team
strategy.
effective control over activities. buildings, strong motivation to deal
They are changing the policy of HRM.
in changing conditions.
Continuous improvement of the
Company X performs a competent
competitive advantages of the Survey and satisfaction of customer
Market scope and proactive response to market
company – both on the domestic needs and requirements.
trends.
and international market.

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 Articles Corporate Culture Change Management

Corporate Culture
Theory E Theory O Theory E + Theory O
Change Scopes
Introduction and application of
new technologies for continuous
Specialized training of staff members Search for and implement new
improvement of processes
Innovation scope from different levels - in Bulgaria and approaches to empower employees to
and production of goods,
abroad. generate innovative solutions.
corresponding to the modern
trends in the sphere.
Company “X” build an adequate
system of internal communication.
They maintain investor relations,
Integration of corporate
provide timely and accurate They maintain adequate systems of
Communication communication;. comprehensive
information about financial results, communication in the company based
scope communication of CRS activities;
ownership, company policy and on communication audits.
clear and consistent communication
CSR standards.
with stakeholders in continuous
dialogue with feedback.
Company “X” recognizes the
Monitoring and They explored the satisfaction
ROI, return on sales, trends of enhancement of overall competitive
measurement of shareholders and other key
stock prices performance through high-quality
scope stakeholders groups.
products, procedures, policies.
(Source: Author)

Its purpose is through the provision of with corporate culture - human capital,
high-quality products (goods, services, management style, communication practices.
relationships, communication practices, The change programme implementation
organizational behavior and their transfer can be likened with the one proposed by
outside the organization) to enhance the overall Heracleous (2001) – the model for the
competitive performance of the company. implementation of change in corporate culture
We can conclude that the company associated with organizational change.
has a market-oriented corporate culture, After the organizational transformation
with an emphasis on innovation in the experienced by the company, it is oriented
manufacturing sector and to continuous towards maintaining a state of “dynamic
training of personnel. The leadership stability” and focuses on the introduction of
evaluates the role of this culture to enhance systems and innovative solutions that improve
the competitive advantages of the company. productivity and regulatority processes - and
The administration encourages the sharing of thereby to enhance its competitive performance.
corporate culture by the members of the staff. Based on the author’s methodology
In the company there are good practices of presented earlier in the study, we will present
corporate culture’s communication to internal the parameters of change for the Company
and external stakeholders. „X“ SA and provide frameworks for future
The change realized in Company “X” SA changes based on the Heracleous ( 2001)
is planned and represents the successful and Kotter (2012) models.
combination of approaches seeking balance
between Theory O and Theory E - given Framework for realizing a change in the
corporate culture of Company „X“ SA.
a meaning to increase the capacity of
the company by focusing on economic In order to successfully change the
indicators and also for the factors associated corporate culture of the company, it is
306 Economic Alternatives, Issue 2, 2019
 Articles
necessary to conduct corporate culture and Hi-Fi studio are separated. The company
audits once a year, using diagnostic tools has one employee who works in the city of
such as the Cultural Web Model (Johnson Burgas because one of its primary customer
and Schoeles, 1999). The recommendation has business on the Black Sea.
is that it should remain with a strong One of the company managers, after
market orientation. Positive would be the considering the advantages of the corporate
empowerment of middle management by culture, says that his interest in the adoption
increasing their responsibilities for making of best practices increases gradually and he
more independent decisions. Specialized subsequently tries to implement them in the
training, as well as training in the context of operations of the company. He says he wants
learning and developing soft skills, should to engage with leadership, not management,
be a priority. The continuous updating of the to encourage and motivate employees.
communication programs is mandatory. Regarding corporate culture, he says that he
VB studio Ltd. wants to consider the company as a family
and to transfer this type of attitude to its
The current state of the company customers. The Corporate culture of studio
VB has the characteristics of the culture of
Company VB studio (www.vbstudio-bg.
integration (Denison et al., 2006), which is
com) specializes in offering a complete design
based on the emphasis on the development
and construction of exterior and interior
of human resources, teamwork, and informal,
solutions by integrating architecture, furniture,
implicit control. However, the company
audio/video equipment. It has its design,
management focuses on encouraging
manufacturing and commercial base. VB
adaptive culture (Denison et al., 2006) -
studio is working successfully in partnership
customers are evaluated and the aim is to
with other companies. It is certified under
create mechanisms to capture the signals
ISO 9001: 2008. Currently for the company
worked 22 employees. coming from the surrounding organizational
environment to provide an appropriate
Structure and management response, which requires the construction of
The studio has two managers and consists relevant values ​​and norms.
of three departments - architecture, furniture, Managers share the view that whoever
and Hi-Fi. Furniture and Hi-Fi units have is on the market and wants to be competitive
respectively two supervisors. The structure needs to adapt to provide the right answers to
is horizontal, but in the formation of teams the changes that occur in the external macro
associated with the implementation of specific and micro environment. The management of VB
projects, managers are singled out who assign Studio decided that they were able to close the
tasks to other team members. The company cycle - from investment to implementation and
management sees the possibility of a future subsequent maintenance of the finished site.
phase current employees to form a middle The company’s business philosophy is to
management level and work more actively with always look for successful solutions.
freelancers, which will set new challenges for In example of Google the management
the organization. Each one of the departments of VB studio has decided to introduce the
of the company is situated at a different rule of 20%, whereby within the working day
location - employees of the architectural office employees should work on their projects
work together, but the Furniture Studio (factory) which however are associated with their
307
 Articles Corporate Culture Change Management
duties. Thus they believe that they will be According to the company manager, the
motivated to work devotedly for the company flaw in the communication with customers is
that provides them with such an opportunity the inability to clearly present the nature of
and will assist in generating new ideas that the services they offer. So customers cannot
can then be further developed and applied in be fully aware of the high-quality work of the
the specific practice. company employees regarding of specific
The manager of the company notes details that are aimed at creating added value.
that the main problems are communication The weak presentation does not allow clients to
problems - they have not established good understand the extent of work quality with VB
practices for the implementation of both studio, so possible cooperation is terminated.
internal and external communication, which in The company management is oriented in
turn leads to low level of understanding of the the future to work with clients from abroad;
objectives of the company by both employees therefore the role of communication becomes
and customers. critical. At the time managers are committed
In this case, management has realized the to creating an interactive web site and on
weakness in both the internal and external the advice of communication, specialists will
communications. To a large extent, formal have a specialized Chat room for customers
communication is done informally, which that will provide online consultations with
is directly related to the specifics of the employees of the company. The idea of the
manager is that every employee has the
existing corporate culture. According to the
opportunity to communicate with current
company employees, the online contact is
and potential customers. According to him,
a very suitable communication channel for
the communication employee - client for
disseminating information about their official
identification of customer interests - is one
activities and tasks, as most of them work
of the most complex challenges the company
on different projects in various fields and are faces.
oriented to flexible working hours. At present, Essential for VB studio is the introduction
the management of VB studio introduces and use of the tools of corporate PR, to assist
the use of an online communication system both the promotion of services provided by the
that combines the capabilities of intranet VB studio and the creation of a recognizable
and extranet. The above-mentioned will corporate profile in public space with the help
facilitate communication between employees of new technologies which offer significant
and customers. Subsequently, the online opportunities for competition on the global
communication system will facilitate marketplace. As a first step, on the advice
communication with freelancers, with which of communication specialist, the company
the company management intends to expand management intends to conduct webinars to
its activities. The administration has decided present the company‘s services and use them
to invest in training - both for professional as a form of attracting future customers.
development and for improving the so-called VB Studio is a change-oriented company,
„soft skills“ - related to communication, and the current situation does not satisfy them.
emotional intelligence and leadership. The knowledge accumulated so far provides
Introductions of the practice will be presented an opportunity to understand the stage of
online so that each employee at any time has development and the issues that are relevant
access to them. to solving them, as well as which ones should
308 Economic Alternatives, Issue 2, 2019
 Articles
be prioritized to move to the next phase of corporate vision and culture are still not fully
the company‘s lifecycle. The manager of the formulated and documented, which negatively
company is of the opinion that the satisfactory reflects motivation. The abovementioned, in
stage is the one in which the business turn, leads to the departure of some of the
functions as a well-oiled machine and the employees who have failed to feel part of
managers are more in the role of facilitators the team with whom they have not matched
and leaders who support the motivation of regarding the vision of the future.
other company members to successfully Even though that VB studio is a small
achieve the organization‘s goals, which are company, we are talking about corporate
found in a corporate culture that is clearly culture, which is a result of the adoption by the
defined - not only in certain formal documents management of best practices in governance,
but also in the products and the approaches to corporate culture specific to large companies
the realization of the business activities. (Dimitrova, 2015).
The company management is planning The first significant change VB studio
a strategy for entering a new foreign market, that successfully underwent is precisely the
which exposes it to search for opportunities transition from the phase of entrepreneurship
to increase its competitiveness. Again, this to professional management phase –
emphasizes the need for a clear definition, the culture of the entrepreneur should
communication, and management of corporate become a corporate culture - in line with
culture that promotes competitive performance. the aforementioned. This change has a
As an investment in the future transformational character – it requires the
implementation of change and innovation, adoption of totally new rules for actions
recruitment and recruitment process is taken under the revised organizational reality. The
into account to motivate and fully engage in change combines approaches associated
corporate culture. The motto is to look for with Theory Е and Theory O. After a relatively
and then hire people with whom they can long period of implementation of constant
build a long-term relationship. The company change - in different departments of the
management see innovation as an opportunity company in respect of the various rules and
of identifying and pursuing common goals procedures, the introduction of standards for
which aid the attitudes towards the drive to quality management, the company is directed
market leadership and competitive advantage. to transformational change - seeking to enter
They are well aware that the company‘s on a new market.

Table 3. VB Studio Ltd.

Corporate
Culture Change Theory E Theory O Theory E + Theory O
Scopes
Performing informal, implicit control. VB
Working in fluid teams
Studio members continually looking for
Organizational Small firm; three departments,
the riching implementation of modern
scope two co-owners/managers Accent on leadership; motivation and
corporate practices, they insist on
inspiration
improvement of soft skills.
Search for the complexity of VB Studio is trying to promote the
the services offered. Expanding Search for options for implementing product brand: initiating actions for
Market scope
the niche market and exiting the The Blue ocean strategy. enrichment and development.
international market.

309
 Articles Corporate Culture Change Management

Corporate
Culture Change Theory E Theory O Theory E + Theory O
Scopes
The VB Studio is applying an atypical They are conducting training for the
Searching for options for marketing. Enter and act according to use of specific software for external
Innovation introducing technology solutions Google’s 20% rule. The continuous groups, where the services offered
scope to reduce prices. Using search for „the different”.Selection by the company are presented. .VB
specialized software and hiring of employees – through full Studio operates as an ambidextrous
involvement in company affairs. organization.
They developed of online
ROI of communication. VB
communication system – a
Communication studio enhancement presentation VB Studio advances in training –
combination of Intranet and Extranet.
scope of services and identification of professional and of soft skills.
VB studio staff is an active using of
customer satisfaction.
social media tools.
One of the managers holds regular
Monitoring and Prepare a regular assessment of the
They carry out employee hourly meetings with each employee – for
measurement contribution of each employee and
measurement.. professional support, problem- solving,
scope their engagement to specific projects.
motivation.
(Source: Author)
What could be a strategy for the change company of the type referred by Kotter (2012) -
in the case - functioning of VB studio as balancing between hierarchy and networking, a
a virtual organization - a “core” formed by company that has a corporate culture oriented
project managers who work with freelancers, towards preserving stability in the parameters
depending on the specific architectural of continuity and acceptance of the idea
projects and the specifics of the job? change as a generator of creative solutions,
Managers of the company will be acting innovation and competitive advantage.
more as “social architects” - their main task Based on the author’s methodology
will be to promote the integration of project presented earlier in the study, we will present
managers and employees from a distance the parameters of change for the VB studio
around the values and norms, emphasizing Ltd. and provide frameworks for future
professionalism, quality, and fair treatment changes based on the Heracleous ( 2001)
of all stakeholders, creating and maintaining and Kotter (2012) models.
trust towards the company. That requires a
high level of communication competence, Framework for realizing a change in the
corporate culture of VB studio Ltd.
introduction and use of new media tools for the
realization of organizational communication, Successful future change in the corporate
emotional intelligence, and sensitivity. In the culture of VB Studio can be done if it exists
case of implementation of this change, VB in a state between formalization and partially
studio will become the organization whose unfrozen construct. For this purpose, it
members are guided not by management is necessary to adopt new attitudes that
approach based on command and control or encourage the adaptation, generation and
hierarchical relationships; they will be linked introduction of innovations. The idea of the
precisely by the postulates of corporate culture company operating as a virtual organization
and related constructs of organizational identity using the services of freelancers requires
and corporate image and reputation. If the the formation of a group of members of the
company grows, it has a chance to become a organization that are both susceptible to
310 Economic Alternatives, Issue 2, 2019
 Articles
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