How Culture Alignment Stimulates Strategy Execution
Through Goal Alignment
Goal alignment focuses on ‘what is done’ in the organization on a day-to-day basis. It ensures that the task performed by each individual or group is focused on strategically important areas. Organizational culture aligns goals with structures, processes, and employee interaction, for successful strategy execution and goal achievement.
By Enhancing Productivity
When people in the organization act and interact in the same way, there is better mutual understanding among employees and they can work in a more efficient manner. According to a study by Kotter and Heskett, the organizations that aligned culture and strategy yielded a three times higher Return-On-Investment than those with a non-aligned culture and strategy.
Mergers & Acquisitions
In this age of cut-throat competition, large corporations are hungry for mergers & acquisitions. However the success of mergers and acquisitions solely depends on the integration of cultural parameters in the acquisition plans. The outstanding example of culture-strategy alignment is the merger of Hewlett Packard and Compaq Computers. Prior to merger both of these companies had their unique culture, work schedules and formalization. While merging, the top officials from both the companies came together to form an optimum culture that fits into both, without hindering the efficiency of individual employees.
It does not matter what wonderful strategies your organization has formulated; if it doesn’t fit into the culture, it won’t be materialized. Misaligned organizational cultures mar the organization’s growth engines and prevent strategies from being achieved to their full potential. The strategic orientation of an organization is just another expression of its dominant cultural values.