Culture and Strategy
“A company’s culture is the foundation for future innovation. An entrepreneur's job is to build the foundation.”
Brian Chesky, CEO, Airbnb
Organizational culture encompasses values and behavior that "contribute to the unique social and psychological environment of an organization”, recently, no organization can go on its mission and last in the world of competition without maintaining a strong beneficial culture as a concept.
It appears that there is a specific causal relationship between organizational culture and the organization’s strategy as recent empiric researches have shown. Organizational culture significantly impacts the procedures of strategy formulation and selection, as well as its implementation.
On the other hand, the selection and implementation of a strategy can support or change the existing organizational culture.
Balancing of the three key factors for strategic plan implementation strategy, structure and behavior promote the performance that it is targeting in implementing the strategy.
A successful approach to culture change factors desired to be understood there for that drive the strategic plan to be executing successfully.
Once an organization is faced by a changing market or regulatory environment or has recognized the exigency for a shift in strategic direction, the implementation of a new technology, or the introduction of new processes, the established culture may hamper development unless it, too, is changing. As according to this, the success of major organizational change creativities is almost always relying on an internal cultural alteration.
However, the difference lay in the influence that each component of culture has dominant attributes do have an effect on the values support by the institution and on the financial strategy.
There exist histories and fable about the institution but they do not affect the decision-making process of both the employees and leaders of the institution.
However, the values upheld by the institution have been greatly shaped by the histories and organization myths. The cultures that develop must support success focusing on the overarching design of a new culture also should be modified only those aspects of the culture that are not supportive of successfully achieving the strategy implementation. It is also fundamental to architect the new culture at the subculture level to ensure that the local interpretations not only prop the strategy but also integrate effectively with the other subcultures across the organization.
Finally, strategy lead structure, structure lead behavior, and behavior come out with the results, the balanced interaction of the three drive the improvement of the performance and attitude, and that as the main objective of applying the strategy to succeed.
* Farhan Hassan Al Shammari
Master of Business Administration
Author of articles in management and self-development