Company strategy creates vision, goal, and direction for the whole organisation, guiding everyone towards achieving the desired result. A strategy alone, however, might not be enough to create and retain loyal employees. More than that, it is the culture that makes people stay. A solid culture can also give meaning to everyone to perform better and be more productive.
The question remains: when it comes to business success, which one is more important? Strategy or culture?
In the globalised business, companies require strategic thinking to become strategically competitive. A sustained and sustainable competitive advantage occurs when a company implements a value, creating a strategy of which other companies are unable to duplicate the benefits or find it too costly to initiate.
Based on The Concept of Corporate Strategy by Kenneth Andrews, corporate strategy includes commitments, decisions and actions required for a corporation to achieve strategic competitiveness and earn above-average returns. Several benefits of having corporate strategy are as follows:
Culture is the one that makes a business grow stronger and better, Torben Rick, Senior International Executive said, whereas strategy is more likely to be owned by all and focused upon. Although an organisation has the best strategy that could not be copied by the competitors, the strategy will not work if the culture of the company does not fit. On the other hand, when a culture is strong, it can become a link to engage everyone, driving company value and performance.
Culture goes a long way in promoting healthy competition at the workplace and represents certain predefined policies which give employees a sense of direction at the workplace. Culture is what creates value within a company, unifying all employees who otherwise come from different backgrounds. In addition, it is also the culture of the organisation that extracts the best out of each team member, developing a habit in an individual which makes them successful at the workplace.
Rick defined that there are four basic building blocks to build a strong culture:
“Without culture, everything else cannot work. The strategy will only succeed if it is supported by the appropriate culture attributes.” – Torben Rick