Culture and strategy working in conjunction with each other is essential for sustainable business performance. For example, if your strategy is to be innovative, you must have a culture that allows employees to fail. Uncomplimentary strategic and cultural aims will cause confusion in employees damaging their performance.
Sir Winfried Bischoff said in the Financial Reporting Council’s recent report on culture and the board, “Establishing a company’s overall purpose is crucial in supporting the values and driving the correct behaviours. The strategy to achieve a company’s purpose should reflect the values and culture of the company and should not be developed in isolation.
When culture and strategy are out of sync, businesses start to move slower. This is caused by differences in actions from teams working on the same types of challenges, due to confusion around which should take preference, strategic or cultural aims. You will then see teams close off as they start to focus on the goals they feel are most relevant for them, rather than all teams working together towards a common goal.
This is why it is so important to have a framework connecting strategy and culture. By mapping culture against strategy you can see where your culture is helping, and where it is harming, your business performance. Using this, you make the necessary changes to ensure your strategy succeeds in creating long-term sustainable success.
To ensure good understanding of strategy, and that culture supports collaboration and swift progress, pay particular attention to the Belonging Parameters©: Interactions, Leadership and Community.