How to align business strategy with company culture

Intro

 

Organizational culture is the set of shared values and practices that shape how things are done at a company. It shapes the company's implicit decision-making and influences individual execution.

In this article, we'll discuss how to customize your company's culture based on the four pillars of business strategy formulation and execution: vision, market, employees, and business model.

 

 

The four elements of the strategy are matched with each element of company culture as follows.

1. Vision - consistency with the vision
2. Market - flexibility to market changes
3. People - leveraging the expertise of each employee
4. Business model - reinforcement of core values

It's important to note that these corporate culture elements are not meant to be equal. However, depending on the company's situation, certain elements may have the edge over others.

 

1. Consistency with the vision

Consistency in vision is the first element in aligning your business strategy with your company culture. Your company's vision should reflect your culture and be clear to everyone. A consistent vision allows each member to understand what the company stands for and is trying to achieve. This can lead to increased motivation, better decision-making, and improved performance.

For example, if you're a company that actively utilizes M&A for short-term, focused growth, you must maintain an open culture that allows different members to fit together.

2. Flexibility to market changes

The second factor in aligning business strategy with company culture is market flexibility. Your company culture should be able to adapt to changes in market and industry trends. For example, if you're a technology company, you should be able to adapt to technological changes and consumer preferences.

To ensure market flexibility, you should constantly monitor market trends and ensure that information from the market can be disseminated within your organization at any time. You should change your business strategy accordingly. Most companies are market-oriented in their smaller organizations but tend to move away from the market as they grow. To counteract this, there are many examples of organizations becoming independent.

Case: Will Barnes & Noble's Next Chapter Be Its Last? (Forbes)

3. Individualized expertise

The third element of aligning business strategy with company culture is professionalism. Your culture should emphasize the professionalism of its members in all aspects of their work. This will help your company maintain a high level of performance.

 

When you trust the expertise of individuals and build an organizational culture based on it, it's called a horizontal organization.

Case: Google's Plan for the Future of Work: Privacy Robots and Balloon Walls (The New York Times)

4. Core values of the business model

The fourth and final element of aligning your business strategy with your culture is the core values that support your business model's core activities/assets. Your organizational culture should be rooted in your core values. For example, if collaboration with external parties is a core activity of your business model, you should have a corporate culture that supports this activity; if your R&D capabilities are a core asset, you can put in place several devices to maximize the creativity of your employees.

Case: Google's Secrets Of Innovation: Empowering Its Employees (Forbes)

 

Conclusion

In conclusion, aligning your business strategy with your company culture is essential for success. By focusing on consistency in vision, flexibility in response to market changes, individual employee expertise, and the core values of your business model, you can build a solid organizational culture that drives performance, innovation, and growth.