The Oxford dictionary states that strategy is “A plan of action designed to achieve a long-term or overall aim”, in the context of business strategy many authors and leaders use different definitions but all basically indicating it is a plan that has to do with long-term goal attainment. For the purpose of this article, we shall define strategy as “A plan which articulates how a business will grow or defend its market and build required capabilities in order to deliver employee, customer and shareholder value”.
Business activities are carried out by people, therefore strategic execution rests on the people (how they behave, their beliefs, their values and their capabilities). We often hear people use the phrase “culture eats strategy for breakfast” which has become the phrase that is used to describe a business’ inability to achieve its goals. When Peter Drucker made this statement, he was attempting to make business leaders aware that you cannot have a strategy discussion without considering the organisational culture. Often new strategic direction means transformation of the organizational culture at one of the below levels or all of them.
- Business context level (Structure, Systems & Processes, Environment, People Capabilities and Leadership)
- Behaviour level
- Beliefs & values level
Without consideration of organizational culture, the strategic planning process is incomplete as part of the strategic planning process is defining your value proposition i.e. Where? How? Why? And What? It is therefore at the strategic discussion that the organizational culture is brought into the plan, not as an afterthought.
Organisational culture will eat strategy for breakfast if it is not part of the strategic planning process or thought of as a Human Resource officer’s job. Any strategic plan that does not fully analyse the current & articulate the required organizational culture and define the organizational culture transformation plan is bound to fail.