Organizational culture is often seen as an abstract concept. However, I have found that network science offers a powerful lens to better understand and shape it more sustainably.
Networks are the foundation of all complex systems — from electricity grids to the human brain — and organizations are no different. They function as networks of people connected by relationships, communication, and shared experiences. To transform an organization’s culture, understanding how these networks operate is essential.
A Culture Transformation Journey
When a Japanese automotive company acquired nine European factories to establish its presence in Europe, I was tasked with leading the cultural transformation. Each factory had its own unique history and little connection among the other factories.
The challenge was clear:
How could this diverse group of unconnected entities be converted into a cohesive, collaborative organization?
The density of an organization’s network – the degree to which people are interconnected – directly impacts whether its culture is unified or fragmented.
- In high-density networks, individuals are well-connected across teams, functions, and levels of hierarchy. Information, values, and shared ways of working spread quickly and consistently, fostering a strong and cohesive culture.
- In low-density networks, silos emerge, and subcultures develop that may not align with the organization’s overarching values. This fragmentation can lead to misalignment, friction, and breakdowns in communication.
Culture transformation efforts often flounder because they fail to address this fundamental reality: strengthening connections across the network is essential to align people around shared values and behaviors.
Step One: Create an overarching collaborative structure
The first step in Europe was to form a European leadership group who was responsible for regional decision-making. This is composed of representatives from each factory. It was this group which spearheaded the effort to build connectivity, ensure alignment, and foster a shared sense of purpose across the organization.
Step Two: Identify influencers
Research in network science shows that emotions, beliefs, and cultural memes do not just spread from person to person in a direct interaction. These notions ripple through the network in up to three degrees of influence.
This is how such notions ripple throughout an organization:
- Your behaviors and attitudes impact not only your own colleagues (first degree)
- Your behaviors and attitudes will in turn also influence their colleagues (second degree)
- Lastly even your own colleagues will independently influence their own personal networks (third degree)
This means that a single cultural shift in a key part of the network can create a cascading effect and influence people far beyond the immediate group.
Here’s a real-life example of how the three degrees of influence work in a business setting:
Imagine a new safety initiative which encourages workers to report near-misses. At first, this initiative met with hesitation due to a fear of blame.
One machine operator, Martin, led by example. He openly reported incidents and encouraged his teammates (first-degree influence). His fellow colleagues followed his example. Soon supervisors and other teams (second-degree) incorporated the discussions of near misses into their daily huddles.
Eventually, even teams unconnected to Martin (third-degree) adopted the practice. This had the effect of transforming the factory’s safety culture. Within a year, reports of near misses increased, accidents dropped, and leadership saw how one single behavior had rippled across the entire network in the factory.
The law of three degrees of influence explains why the people who are engaged in a culture transformation initiative matters just as much as what is being done. Certain well-connected individuals can act as amplifiers, hence accelerating change throughout the organization.
The individuals that are well-connected will have the most impact. In network parlance these individuals are called influencers.
To amplify a mutual understanding of the cultural message, a selection process was undertaken. This process identified the key influencers across the European organization. This process was facilitated through the use of organizational network analysis. This is a process which maps how people are connected to each other throughout an organization. A group of identified influencers volunteered to become Culture Ambassadors. These individuals were tasked with spreading the transformation process through peer-led initiatives.
Step Three: Conversations, not workshops
Traditional culture programs generally rely on workshops,. This approach often creates a passive learning dynamic. As a result, such efforts fail to build the relationships which are necessary for a deep and sustainable cultural transformation.
We pioneered peer-to-peer conversations instead.
Culture Ambassadors were mentored to facilitate structured discussions on the company’s six core values and their relevance to daily work throughout the organization. These 90-minute sessions were flexibly scheduled via a modern calendar system which was easily accessible to everyone. In addition, the system offered participants a choice of dates and times. The voluntary nature of these discussions fostered both ownership and engagement.
What was the impact of this approach within a year?
- Nearly all 3,000 employees had taken part in at least one conversation.
- 75% attended multiple sessions.
- Virtual sessions strengthened connections within and between factories across Europe.
A key indicator of the ripple effect was the spread of an understanding of the Japanese concept of monozukuri (roughly translated: “continuous improvement”). Initially unfamiliar in Europe, the concept became widely understood within three months. This was achieved purely through the peer-led discussions and word-of-mouth. No formal corporate communication was required.
Step Four: Cultivate a shared identity culture
Despite the powerful impact of peer-to-peer conversations, something was still missing. Small-format discussions had built relationships. However, these small group conversations did not instill a sense of collective identity. Geographical separation easily reinforced an “us vs. them” mentality between factories.
To reinforce connectivity across locations, we introduced the idea of hosting Culture Cafés. These were large-scale, half-day events during which employees from different factories explored collaboration and cultural alignment. These face-to-face gatherings complemented the smaller peer-driven conversations by fostering trust and breaking down silos. Through this shared experience, participants gained a broader perspective of how each factory contributed to the organization’s overall success.
Results: A High-Performing, Connected Organization
One of the most remarkable transformations occurred at one of the German factories which specialized in tool production. Initially isolated, it became a European innovation hub within 18 months:
- Employee engagement surged, with sick days plummeting from 8% to 2%.
- Factory accidents dropped to zero.
- Cross-factory collaboration flourished by dismantling silos and enhancing knowledge-sharing.
- The works council, which was once resistant to inter-factory cooperation due to fear of job loss locally, became advocates for strategic initiatives.
- The factory gained global recognition from the Japanese parent company, extending its influence beyond Europe to Asia and North America.
Key Takeaways
This experience reinforces how network science principles — strengthening connectivity, leveraging key influencers, and recognizing the ripple effect of influence — all serve to fuel successful culture transformation.
When a cultural transformation is embedded within the network itself, it evolves from a top-down directive into a self-sustaining, dynamic force that adapts and has sustainable impact throughout with the organization.
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