Is Company Culture More Important Than Organisational Strategy?

May 15, 20201:39 pm621 views
Is Company Culture More Important Than Organisational Strategy?
Is Company Culture More Important Than Organisational Strategy?

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? 

Company strategy 

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. 

See also: Leader Tips: Focus on Manager Experience to Create Better Workforce Culture

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: 

  • Universality refers to a complex of thoughts, ideas, insights, experiences, goals, expertise, memories, perceptions, and expectations that provide general guidance for specific actions. 
  • Keeping pace with the changing environment. 
  • Minimising competitive disadvantage and adding up to competitive advantage. 
  • Creating a clear sense of strategic vision and a sharper focus on goals and objectives. 
  • Motivating employees. 
  • Strengthening decision-making.
  • Resulting in an efficient and effective way of implementing actions. 
  • Improving internal and external business purposes. 

Strategy vs. culture 

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. 

Company culture 

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: 

  • Dynamic and engaged leadership, knowing what’s going on at all levels of an organisation. 
  • Living values rather than frame values in a conference room, modelling values throughout an organisation on a daily basis. 
  • Responsibility and accountability, recognising employees’ talents and being clear about what they are responsible for. 
  • Celebrate success and failure, and make a point about learning from each mistake. 

“Without culture, everything else cannot work. The strategy will only succeed if it is supported by the appropriate culture attributes.” – Torben Rick 

Read also: Perks vs. Culture – What It Takes to Retain and Attract Talents