culture eats strategy

Presented by- Ankita Gawde

WHAT IS CULTURE?

• Organizational culture is concerned with the way employers expect individuals will behave within their organizations and the unwritten rules guiding and influencing the way to do things within their workplace

• Culture is the oil that makes the company’s value creation engine turn frictionless

WHAT IS STRATEGY?

• Organizational strategy is mainly concerned with the direction an organization wants to go to and, more in particular, with what an organization needs to do to get there

• Organizational strategy is concerned with the “what” of organizational objectives identification and attainment

• Organizational culture is concerned with the “how” side of the process

CULTURE EATS STRATEGY FOR BREAKFAST* … WHAT DO WE MEAN BY THIS?

• The great strategies can be resisted by strong enterprise cultures we call this “culture eats strategy for breakfast”

• A culture can be a powerful animal that counteracts and resists attempts to change, no matter how good the strategy is….

• The idea behind the assumption “culture eats strategy” is, however, not as simplistic as it might apparently seem

• The statement “culture eats strategy for breakfast”, attributed to Peter Drucker, become popular in 2006 when Ford Motor’s president Mark Fields, on the basis of his experience at Ford, stressed the fundamental importance of a supporting culture when you want implement a change process within your organisation

RELATION BETWEEN CULTURE AND STRATEGY

• Strategy and culture are often seen as independent factors but they are completely dependent upon each other

• In reality 1% of strategy is planning, 99% is daily decisions and actions. Culture effects these daily decisions and actions far more than the plan


• Culture should be consistent and coherent • The right culture for an organisation is at large the

one enabling an organisation to attain its intended aims and objectives

• Organisation having a strong culture


• culture exerts a remarkable power and influence over strategy

• Strong cultures are powerful motivator and are clearly of paramount importance for organisational success and implementation of strategy

INTERDEPENDENT FACTOR

• Having strong organisational cultures without having effective strategies can be considered equivalent to have tens of thousands barrels filled up with oil without having a car or, to put it another way, having a fantastic sport car and letting it standing still into the carport just because you have the foggy idea of where to go

IMPACT OF CULTURE ON STRATEGY

• Organisational culture practically has a much stronger power on individuals’ motivation than strategy, but individuals also need to be aware of the importance for their employers achieving their intended objectives as well as strategies and should support them in the quest

WHAT TO DO? WHY TO DO?

• Employers, from their side, should also involve as many individuals as possible in the strategy formulation process

• Culture is important as well as it also is strategy

ANALYSIS

• The human element (culture) in business, whether in the form of personal values or organization politics will always be a strong undercurrent in any enterprise.

• strategy if not managed and communicated to the employees within a strong mission statement expressing company values, supporting objectives can create problems

MY DEMONSTRATIONS

• What this demonstrates for me is that we are moving beyond the era when it was common to believe that leadership and management were about working out what the right thing to do was (usually in isolation) and then telling it to the people. Who would then, presumably, do it – except of course, very often, they didn’t.

CONCLUSION

• Finally, culture is potentially able to eats strategy, no matter whether for breakfast, lunch or dinner

• For the sake of the overall business stability and existence, culture and strategy should move hand in hand …

CONCLUSION

• You can have the best strategy in the world, but without the right culture you will not be able to deliver it. Equally, if you have the right culture, it will help to ensure you have the right strategy

• In short, the best strategy in the world must be implemented with effective and dynamic management of the business culture within which it is being executed

KEY TAKEAWAYS

• You can’t do strategy without your culture• You need to choose a strategy that fits your

culture…• You need to leverage your cultural strengths to

enable and accelerate the transformation program and to counter-balance cultural weaknesses