Culture and strategy
9 important questions on Culture and strategy
How can culture influence a strategy?
- Past influences the current and future strategy
- By historical legacies which have become embedded
- Capabilities may have built up over time
What are the reasons for incremental change?
- Alignment with environmental change (change gradually)
- Success of past (unwillingness to change due to advantages/innovation)
- Experimentation around a theme
What are the reasons for strategic drift?
- Success of the past/Changes are thought to be temporary (not serious)
- Changes not understood (familiar solutions)
- Core rigidities (capabilities become difficult to change)
- Difficult to change relationships with customers/suppliers/employees
- No negative influence on performance (yet)
- Higher grades + faster learning
- Never study anything twice
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What will most likely eventually happen with strategic drift?
- Downturn of financial performance
- Loss in market share
- Decline in share price
- Loss of customer loyalty
What is flux? And why is there a downturn in performance?
- Strategies may change but the path is not clear
- Pressure to perform better (by stakeholders)
- Different opinions
In which four ways can a manager opt historical data analysis?
- Chronological analysis; chronological order of events and how the organisation reacted
- Cyclical influences; understand when cycles might occur and how industry/market forces might change during these cycles
- Anchor points; historical events which were significant
- Historical narratives; understanding past decisions through communication
What frames does the culture exist of?
- National (or regional)
- Organisational field
- Organisational
- Functional/divisional
What is an organisational culture?
Of which four things does the organisational culture exist?
- Values; stated
- Beliefs; more specific (how people talk about issues)
- Behaviors; day-to-day in which organisations operate (seen)
- Paradigm (take-for-granted); core of the culture which is difficult to identify (important in relation to the strategy)
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
