Cultural Change Next Level
In a dynamic environment, adaptability and flexibility are central elements of performance. To advance digital transformation, the Otto Group has been successfully driving a cultural change for several years. The process was intentionally initiated in an open manner, is now firmly embedded in the organization, and is self-sustaining. The next phase of cultural change is about to begin.
About nine years ago, shareholders Prof. Dr. Michael Otto and Benjamin Otto, along with the board of the Otto Group, realized that even the best strategies would be ineffective if the attitudes and culture within the company were not aligned. To ensure the long-term viability of the corporate group in the face of exponential digitalization, the boards and shareholders unanimously declared Cultural Change 4.0 at the end of 2015. The Otto Group started with the idea of initiating an open, participatory process beyond roles and hierarchies, radically questioning and transforming existing structures and traditional mindsets with maximum creative freedom. Even then, the focus was on shaping future viability, fostering an attitude that makes teams adaptable, responsive, and collaborative. Since then, the organization has repeatedly demonstrated its strong capacity for change and dynamism.
Cultural Change and AI
Willingness and ability to change have become an essential, deeply ingrained mindset at the Otto Group. Collaborative and agile processes have emerged, demonstrating effectiveness. For example, at the end of 2023, the Otto Group developed ogGPT within two months—a secure and data protection-compliant ChatGPT solution that can utilize internal corporate data. This is a result of the cultural change that promotes courage and openness to new technologies. The company has created a secure framework for voluntary experimentation with GenAI solutions and encourages a test-and-learn approach. Today, over 7,000 colleagues use the AI tool monthly and continuously develop it further.
Deeply Interwoven
Through the participatory and decentralized cultural change, the Otto Group has built competencies and resources over the past years, launching a self-sustaining process. It is essential to continually train and engage in dialogues on equal footing—regardless of hierarchies or backgrounds. Iterative work and experimental approaches are part of this culture, as is the principle of focus, which allows for more efficient and concentrated use of resources.
"Over the past years, a corporate culture fostering collaboration, trust, and transparency has emerged," explains Alexander Birken, CEO of the Otto Group. "We can now further amplify the lever for effective change by firmly embedding the power of the central Cultural Change 4.0 team across different areas of the Otto Group Holding."
Through organizational developers, agile units, and cultural leaders, cultural change has increasingly evolved into a professional discipline. Tasks that were intentionally assigned to a temporary cultural change team will now be advanced at the central levers of the organization—primarily within Human Resources (HR) and Corporate Communications of the Otto Group. This enables a greater capacity for change to be scaled and integrated into all relevant topics and processes from the ground up. The responsibility for cultural change within the Otto Group will thus be distributed more broadly and clearly aligned with current needs.
Strong Formats
Central impulses remain essential: The formats #CDX (Culture Development Experience), the internal cultural change community, and the highly successful external cultural change collective will continue to be strengthened and driven cross-functionally—because knowledge exchange with other actors outside the Otto Group enhances the internal process.
Cultural change is an integral part of our business processes: The Group Human Resources team develops fundamental frameworks for new structures and leadership principles. The Change & Transformation Center supports corporate entities and teams in transformation processes. Corporate Communications & Public Affairs actively designs formats for transparency and participation and manages communication regarding cultural change and transformation topics. The Strategy & Transformation area provides essential impulses for corporate direction.
"We must continually reinvent ourselves. This requires the right approach, the right mindset, and strong transformational capability. Only then can we master the developments in digitalization, societal, and geopolitical changes," explains Alexander Birken, CEO of the Otto Group. "We drive cultural change to remain future-ready."
