Tuesday, May 17, 2022


Culture and strategy are strongly intertwined. Culture integration logic tends to be the thorniest, as this is where semantic mismatches between systems come into play.

Culture is a collective mindset; to capture the spirit of culture, management needs to uplift from culture-awareness to cultural cognizance and empathy. In the traditional organization that gets stuck at the lower level of maturity, often a typical corporate culture demonstrates hierarchy, bureaucracy, centered around control, distrust, dependence, etc. 

A good culture requires respect, responsibility, self-discipline, autonomy, empathy, and purpose; create bonds with respect and trust. People can share their viewpoints, understand their value, motivation and priority, get anyone you work with energized and involved, transcend the culture for making human progress and positive influence.

Context intelligence of corporate culture and subculture: Context intelligence is about understanding the whole meaning of functional dialects and business cultures or subcultures without getting lost in interpretation. If culture eats strategy for breakfast, it’s important to have business context; gain an in-depth understanding of specific cause and effect in a specific context or the core issue of the situation which leads to a better solution to fix culture related issues. Senior management drives the culture in the right direction, and moves the strategy of the business forward.

The spirit of culture comes from the top. Business leaders study cultures today to stretch their minds and views of themselves, in the attempt to achieve the set purpose. Whatever the leadership encouraged, excused, or condoned shapes what culture turns to be. The open minded leadership nurtures the culture of innovation; a strategic leader can think of the big picture, identify culture pitfalls, and build a culture of high performance. The entrepreneur leaders often have balanced viewpoints to perceive success and failure objectively, such mental toughness will help an organization become more resilient, leverage the startup culture by discovering the new path for business growth and balancing innovation with other organizational priorities, and nurture the culture of risk tolerance, etc.

It's a strategic imperative to diagnose the root causes of cultural failures, reinvent it to get digital ready: The corporate culture gets influenced by their community or societal culture as well. Some cultures are positive and constructive to enable effective strategy executions; others are negative in some aspects that stifle changes or innovation. Culture is like the corporate habit; it can be changed, but it takes time and lots of deliberate effort and discipline to sustain its effect. Designing a highly adaptive organization, that is a sociotechnical system, with a culture of people-centricity, is an order of magnitude more difficult than designing a mechanical or technical system with culture of compliance. In many cases, the senior managers are afraid of the culture change because culture change is a long term initiative, as culture is built on the underlying briefs and values, historically there were no solid roots for adopting new idea in many traditional companies.

Corporate performance management is part of the business culture. Too many organizations don't receive the true return on their business investment because they cannot or will not create a culture of high performance. Though top management sponsorship is crucial to develop a culture of high performance. Performance management should not be confined at the top but to all levels. How to manage performance indicators and how to set Key Performance Indicators is part of cultural effort, as it directly or indirectly influences people’s attitudes and behavior. In fact, it's part of corporate culture.

If organizational performance decreases significantly, the management needs to check up:
Is it caused by a lagging mindset, disconnected or distant layer of leadership or disengaged employees, immature capabilities or soft factors such as poor communication or inertia culture? Did you move the purpose of performance reviews and management away from evaluating the past, and focus on improving success in the future? If top management truly believes that their personnel is the true measure of their company’s worth, then they’ll hopefully do their utmost to make sure that personnel are educated, accepting and eventually invested in that change themselves, and thus, change the organizational culture as well to unlock corporate performance.

Culture does not live alone in the business, especially the large well-established companies. In order to move up to the next level of organizational maturity, the culture needs to be changed to adapt to the dynamic environment, and pull strategy execution towards the right decision. Culture and strategy are strongly intertwined. Culture integration logic tends to be the thorniest, as this is where semantic mismatches between systems come into play. So any change should be lock-stepped and used together to make a business stronger by incorporating cultural requirements into the strategy management cycle and achieve high performance results.


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