An executive client, the CEO of a legacy manufacturing firm, wants to foster a more innovative and agile culture to compete with new market entrants. Currently, the organization is highly hierarchical and risk-averse. What is the most critical first step a CELC should guide the CEO to take to initiate this cultural transformation?
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A
Announce the new cultural values in a company-wide meeting and update the mission statement.
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B
Conduct a comprehensive cultural assessment to identify current values, norms, and underlying assumptions.
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C
Implement a new performance management system that heavily rewards innovation and risk-taking.
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D
Replace senior leaders who appear most resistant to the new agile approach.