Strategy and Culture

Culture
Culturethe way we do things around here
provides guidance, whether intentional or de
facto, on what is done (or is not), how it is done (if it
is), and why it is or isnt done.
Culture permeates every organization, and has the
ability to either support or destroy even the most
critical change initiatives.
External and Internal Culture
The external cultural experience has to do with the stories you hear
about an organization: its awards, your own experience, media and
advertising. This might include logos, uniforms, office space, jargon,
jokes, technology, products and services, published values, observable
rituals, ceremonies, market/financial conditions, competition, and so
forth. All of these impact the strategy of an organization.

But the internal cultural experience the shared habits, values, beliefs,
assumptions, rules of conduct, etc. is more likely to profoundly impact
the strategy.
Components of Culture
Mind sets
Frame of reference
Priority

Behaviour


And they affect the organisation
At a conscious level
At an unconscious level
Culture alignment accelerates
strategy execution
Creates competitive advantage

Delivers mission

Builds productivity

Breakthrough performance results

Manages risks

Maintains sustainability

Culture watch outs
Fatal Thinking
Goal alignment will create culture alignment
Infrastructure change will be supported by the current culture
Communication will change norms of behaviour
Cultural work can be delegated

Actuality
The existing culture is apt to override goal alignment
SAP wont change beliefs
Stump speeches wont work by themselves
It remains the responsibility of the leaders
Factors that affect Culture
External Environment: socio demographic, geo-political
Sector: private industry, regulated, unionized, ownership, governance,
family-owned
Organization Complexity: size, structure, geographic dispersion
Funding Relationships: government, social entrepreneurs
Leadership: corporate values, vision and mission, style and
philosophy
Customers: numerous or few, expectations
Growth Strategy: new markets, mergers and acquisitions, alliances
History of Major Internal Change: people, technology, financing, other
Third Party Relationships: joint ventures, supplier relationships,
partnerships, outsourcing, other
Financing Social Responsibility and
Sustainability
Merger and Acquisition History
Stage of business influences
culture fit
Product Leadership: the best products
(a) meet the industry threshold
(b) first to market in its products or services
Customer Intimacy: the best total solution
(a) generally meet expectations extraordinary service levels and expertise.
(b) customized personable services. Solutions partners.
High Reliability: most dependable
(a) consistently effective
(b) confront the unexpected, and handle failure with resilience. Manage complexity with
aplomb.
Operational Excellence: best total cost
(a) low price, dependable
(b) optimize processes, fill to capacity, hassle free, convenient

Aligning culture fit to strategy
Culture alignment



Culture coherence



Culture cohesion
Strategies that shape culture
change
Creating a new culture calls for new methods. Creating a new culture will be extremely
difficult if you insist on doing it by playing with the old rules. Trying to change while still using
the old rules is futile the rules themselves are part of the problem.
Champion the vision and re-channel the energy. When change happens, people get
disoriented and fear and resistance take over. Start by communicating a compelling vision to
focus employees attention. Give people something to aim atbe specific and avoid
generalities.
Make your early moves bold, dramatic, and unwavering. Culture change requires a unique
combination of passion, courage, conviction, audacity, and determination. Your early moves
must be strikingly bold, lightning fast, and out of character in relation to the old rules. You must
gain momentum quickly, and employees need to see your resolve or you wont overcome
resistance.
Surround yourself with talented, tough-minded nonconformists. Creating a new culture is
not only about changing the rules; its about changing the rule makers. Surround yourself with
people who are as passionate about the new vision as you are and are willing to stand up to
the heat.
Strategies that shape culture
change

Re-engineer the reward system to reinforce the behaviors you want. Culture change
wont happen unless people see a personal return on investment for behaving in different
ways. If you dont radically restructure how you reward people youll fuel the fires of
resistance. Change what you celebrate, honor, and who you hold up as heroes. Devote your
time to those change agents and vision champions who add value.
Track progress, measure results, and hold people accountable. The clich is true: You
get what you measure and reward. Holding people accountable means paying close attention
to whats important. Like a rubber band, if you relax the pull of the new culture, people will
revert back to old comfortable patterns. Tracking progress enables you to know where the
resistance lies and where you should be allocating rewards.
Remove obstacles and bureaucratic practices. Youll gain respect and credibility by
breaking the chains of bureaucracy. But bureaucracy is a formidable adversary its the ball
and chain of the way weve always done it. Your employees will have a difficult time
contributing to the new cause if they are shackled by the old rites, rituals, and rules.
Establish concrete evidence and tangible results quickly through small wins. Tangible
pay-offs fuel the fires of motivation and contain the skeptics. Its hard to argue with success
when you can measure it in hard dollars, time saved, and percentages of rework minimized.
Advertise successesmany cultural initiatives fail because employees in the trenches dont
see or hear about positive results.

Successful approach to culture
change
Momentum is the forward motion of energy toward the realization of
your change.
Critical mass is the point where there is enough momentum to assume
successful realization of a change.
The momentum that is built affects not only the likelihood of achieving
critical massand realizationbut also the investment required to do so.
The longer it takes to build momentum, the higher the sustainability
At the individual level, critical mass occurs when people, on their own,
begin to develop an internal drive (mindset) toward the desired outcome.
At the organizational level, it occurs when the momentum across the
organization provides the level of energy needed to achieve true
realization results. Building the momentum and critical mass required for
success can only happen when the necessary mindsets and behaviors
are in place for supporting your new strategy.
Culture can serve either as a catalyst for building momentum and critical
mass, or as an inhibitor.
What it takes to promote culture
strategy fit
Consistency so that the values hold true.
Take small change steps over time, but within a defined focus.
Break down hierarchies, and add collaboration between departments.
Use pictures to carry the message and the movement.
Challenge the management group to come up with innovative practices.
Focus accountability and responsibility on the team. Know what other
departments are doing. Foster interdepartmental coordination.
Develop personal relationship abilities to include open, candid
conversations.
Promote work/life balance.
Use effective, regular communication and engagement practices that focus
on what is important.
Frame the change by tying performance management to professional
development.
THANKS,
You could reach me at
jshashidhar01@gmail.com or call +91
9820447600
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