Culture & Strategy: Why They Must Be Aligned to Survive
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The Parallels Between Culture & Strategy

Posted by Slaven Drinovac, PCC (Australia) | August 15, 2023 | Comments (0)

The alignment of culture with strategy is crucial for any organization’s success. Culture provides the foundation for strategy execution, while strategy guides and shapes culture. This article explores one approach to aligning culture with strategy implementation, demonstrating how mission, vision, and values cascade throughout the strategy via goals, objectives, and actions and, parallelly, through the organization’s culture via principles, practices, and behaviors to drive results.

An organization’s mission, vision, and values provide a framework for decision-making, goal-setting, and resource allocation. They define the organization’s purpose and desired future state, create a sense of direction, and motivate employees to do their best work. Aligning goals with the organization’s mission, vision, and values ensures strategic direction and meaningful objectives. These objectives, driven by the organization’s values, guide measurable steps, ultimately driving the mission and vision forward. These elements influence the organization’s activities, establish shared beliefs, practices, and behaviors, and guide decision-making at all levels.

For instance, an organization with an environmental sustainability mission should prioritize reducing its carbon footprint and promoting eco-friendly alternatives. An organization valuing innovation and creativity should foster an environment supporting experimentation and risk-taking. Likewise, an organization valuing diversity and inclusivity should promote these principles in hiring, promotion, and training practices.

Leaders play a crucial role in aligning culture with strategy. Several steps leaders can take to ensure harmony between the two are:

1) Clear and Regular Communication

Effective leaders understand the importance of clear and regular communication when aligning an organization’s culture with its strategy. They articulate the organization’s mission, vision, and values in a way that resonates with employees at all levels. Leaders who consistently communicate these core principles and connect them to the strategy and decision-making processes ensure that everyone understands how their work contributes to the organization’s overall direction.

2) Lead by Example

Leaders embed the organization’s values in their behavior and decision-making, which sets a powerful example for others to follow reinforcing the importance of culture and its alignment with the strategy. When leaders consistently demonstrate behaviors that align with the desired culture and make decisions aligning with the organization’s values, it fosters trust and integrity.

3) Aligning Goals and Objectives

Leaders ensure that individual and team goals and objectives are directly connected to the overarching strategy and align with the desired culture. By doing so, leaders provide employees with a clear understanding of how their work contributes to the organization’s mission, fostering a sense of purpose and engagement.

4) Rewards and Recognition

Leaders can establish reward systems that recognize and incentivize behavior aligned with the culture and strategic goals. Using performance evaluations, recognition programs, bonuses, promotions, and other incentives links rewards to desired behaviors, encouraging employees to embrace the organization’s culture and align their actions with strategic objectives.

5) Training Initiatives

Leaders can initiate training programs reinforcing the organization’s mission, vision, and values. These programs help employees understand the desired culture providing them with the necessary skills and knowledge to embody it. Training initiatives can cover topics such as ethical decision-making, teamwork, and leadership development, all aimed at cultivating a culture that supports the organization’s strategic goals.

6) Regular Evaluation

Leaders need to continuously monitor and evaluate the alignment of culture and strategy. Evaluation can be done by measuring employee engagement, monitoring progress toward strategic goals, and conducting regular reviews of the organization’s culture and values. By gathering data and feedback, leaders can identify areas for improvement and take corrective actions to realign the culture with the strategy.

The interplay of culture and strategy is a symbiotic relationship. Culture is the foundation for executing strategy, while strategy shapes and guides culture. Aligned culture and strategy create synergy, enabling the organization to stay true to its beliefs and values. Effective leaders nurture this relationship, championing culture and communicating a compelling strategy. They assess cultural dynamics, adapt strategy, and foster an innovative, learning, and growing culture.

References

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Kotter, J. P., & Heskett, J. L. (2008). Corporate culture and performance. Simon and Schuster.

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Slaven Drinovac, PCC (Australia)

Slaven Drinovac, PCC, is the CEO of Coaching Centre, an online platform that offers coaching services to organizations. Additionally, he serves as a coaching psychology lecturer at the Australian College of Applied Professions and is Queensland President for ICF Australasia. With a strong belief in the transformative power of coaching to drive change, Slaven and his team collaborate with leaders to unlock their potential and achieve sustained success. Leveraging his hands-on experience, creative vision, and deliberate communication, he builds sustainable leadership development programs strongly informed by cognitive behavioral theory. Slaven is passionate about making a difference by helping leaders become more self-aware and purposeful, enabling them to have a significant impact on those they lead.

The views and opinions expressed in guest posts featured on this blog are those of the author and do not necessarily reflect the opinions and views of the International Coach Federation (ICF). The publication of a guest post on the ICF Blog does not equate to an ICF endorsement or guarantee of the products or services provided by the author.

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