Relationship between business strategy organizational culture

The Impact of Corporate Culture on Business Strategy |

relationship between business strategy organizational culture

Global Business and Management Research: An International Journal () Vol. 4, No. 3 & 4. Relationship between Organizational. Culture and. May 29, A company rewards itself when exponential leaders align culture with strategy. Culture must ripple through every act of policy and business. Apr 13, This type of corporate culture will enhance commitment among GBMR: Relationship Between Organizational Culture And Strategy.

relationship between business strategy organizational culture

Rational culture is best suited for companies with this strategy. Decisions are taken based on facts and observed evidences. A reactor strategy is the dynamic one. They do not form a specific corporate strategy and deal with the situations as they occur.

This is why they do not have a unique culture. Sometimes they are innovative, sometimes defender, and sometimes both. It ensures that the task performed by each individual or group is focused on strategically important areas. Organizational culture aligns goals with structures, processes, and employee interaction, for successful strategy execution and goal achievement.

By Enhancing Productivity When people in the organization act and interact in the same way, there is better mutual understanding among employees and they can work in a more efficient manner. According to a study by Kotter and Heskett, the organizations that aligned culture and strategy yielded a three times higher Return-On-Investment than those with a non-aligned culture and strategy.

However the success of mergers and acquisitions solely depends on the integration of cultural parameters in the acquisition plans.

relationship between business strategy organizational culture

The outstanding example of culture-strategy alignment is the merger of Hewlett Packard and Compaq Computers. Prior to merger both of these companies had their unique culture, work schedules and formalization.

What is the Relationship Between Business Strategy and Organization Culture?

While merging, the top officials from both the companies came together to form an optimum culture that fits into both, without hindering the efficiency of individual employees. The strategic orientation of an organization is just another expression of its dominant cultural values.

relationship between business strategy organizational culture

Prentice-Hall of India Ltd. Organizations need an agile culture that embraces the accelerated pace of doing business and readily supports rapidly shifting strategies.

What is the relationship between corporate culture and strategy

How will culture affect your strategy execution? When preparing to roll out your strategy, assess how your corporate culture affects its execution by asking these questions: How do we define our organizational culture? What have we executed in the past successfully?

relationship between business strategy organizational culture

How did our culture contribute to the success? What has failed in the past and why?

The Impact of Organizational Culture on Strategy Implementation

How did our culture contribute to the failure? What is unique in the way we work that makes us successful? What are the stories told about our organization? Who are the heroes and what stories are told about them? How do our people perceive our culture? What adjectives describe our culture?

The relationship between corporate culture and strategy

By reviewing the answers to these questions, leaders can start to define their culture and answer in detail this concluding question: How will the culture contribute to achieving excellence in execution? By strengthening your strategic thinking skills—and encouraging them in others—you can help move your business forward in an increasingly competitive environment. Learn More About The Author A recognized pioneer and expert in strategy implementation, Robin Speculand is driven to transform strategy implementation globally by inspiring leaders to adopt a different approach.