Mastering the connection between strategy and culture

Unravel the intricate relationship between strategy and culture. Discover how these two seemingly disparate elements intertwine to shape organizations, influence decision-making, and drive success. Embark on a journey to master this connection and transform your business landscape.

The COVID-19 Pandemic tested the strength of the connection Ismail was building between strategy and culture

It was straightforward to make the most urgent decisions, which were to preserve cash and to communicate more frequently with employees and stakeholders.

• Strategic decisions required more deliberation, given their complexity and materiality, and considering the uncertainty of the longer-term effects of the pandemic.

A fresh imperative to act

Focusing exclusively on either strategy or culture would be a mistake

• The goal should be to master the connectivity between strategy and culture
• They both should be anchored by capabilities
• Strategy development
• Launch of new services
• Negotiations with important third parties
• Recruitment of key talent
• Critical conversations with employees
• Crisis performance
• In crisis situations, be honest about the scale of the problems, transparent about how long it will likely take to recover, and positive about opportunities ahead

Explore the potential of the culture

At its best, organizational culture can be the source of strategic differentiation and a key ingredient of the value proposition to customers.

• Explore how weaknesses in a culture limit the exploration of new possibilities and, ultimately, superior performance and higher levels of growth.

Start in the right place

Ideally, you develop strategy and organizational culture together in a connected, integrated approach from the beginning

• Experiment, learn, and iterate as you align your strategic direction with the behaviors that will help you get there
• Sometimes it is necessary to put more emphasis on one aspect before connecting the two
• Ask: Given what is happening in our business now, do we have the capacity to adopt an integrated approach?
• If we’re facing difficulties, to what extent do they relate to strategy or culture?

Understand the expectations of the strategy

Communicate the strategy in a way that people understand and relate to so they can try to embed it in their day-to-day actions

• Share stories and anecdotes to visualize what the organization will look like
• Use moments in history that illustrate the courage, resilience, and ability of the organization to move in new directions

Create a common language

Connect and combine specialists in culture and strategy

• The strategy team should share emerging hypotheses, possibilities, and choices, while the culture team should call out strengths, limitations, and problems of the existing culture
• They both should be complemented by authentic informal leaders (AILs) who champion the evolution of the culture from their position of influence across the organization

Strategy and Culture

Culture is a multidimensional collection of self-sustaining behaviors, traits, feelings, and beliefs that determine how work gets done.

• Strategy is a collection of choices about what an organization needs to do to win, satisfying the needs of customers, employees, and investors.

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