To what extent organisational culture can influence strategic thinking?
I don't have empirical data / evidence but based on my personal experience I want to hypothesize that organizational culture do influence strategic thinking. E.g. in a large & highly regulated organization, employees might exercise / play less on strategic thinking because organization culture emphasize more on e.g day-to-day work compliance, zero violation or non-tolerance of any deviation from the Standard Operating Procedures (SOP) etc. Another example is even though MNC CEO in a local country supposed to look at strategic goals but due to top / bottom lines are being measured monthly, this can prompt him / her to think tactically or operationally for the survival of the company or the availability of his / her job. On the other hand, some new / small startup companies might encourage one person that perform multiple roles to think more strategically i.e. looking at longer term how to survive etc.
What are the organisational culture variables that can influence the quality of strategic thinking?
Personally I think following organizational culture variables might be included:
whether an organization's leadership encourage strategic thinking among employees or not.
whether the organization have the unwritten rule or culture that encourage employees to to voice their concerns, future improvement plans or road maps for the organization.
whether the organization employees work more as individual silos or more closely as collective teams - strategic thinking of individuals might not thought through whereas team's one might hold the water.
Size of the organization e.g. well established larger organization might encourage compliance whereas new or smaller organization might given free hand to think more strategically.
Sometimes the way they define their vision, mission, objectives or management stance on certain practice norms, issues etc. can influence the quality of the strategic thinking.
Culture determines organizational boundaries and creates a feeling of identity in members of the organization. Also, it helps to form a special obligation on members towards achieving organizational goals.
Agree with other respondents but would add that organizational culture is ultimately what defines your ability or inability to execute strategy and if you are not executing, it will definitely drive the strategic conversations you are having or not having.
The organization culture is a driving force in how the company does business, it has an impact on developing business strategy. It helps in creating focus among the staff. When employees abide by the company's beliefs and values, it gives a unified impression to vendors, clients and partners. The company can then create a business strategy knowing that the entire organization will apply the guidelines in a uniform manner and improve the chances that a strategy will succeed Organizational culture can influence the success or failure of a company.
Реализации потенциала организационной культуры позволяет мобилизовать персонал учреждений на эффективное достижение групповых и организационных целей. Для этого организационная культура должна быть согласована с общей целью учреждения, а его высшее руководство должно формировать и культивировать такую систему ценностей и норм, которые прямо или косвенно способствуют достижению стратегических задач организации.
Развитие общества во многом определяется организационной культурой, выступающей фактором повышения производительности труда и социального прогресса.
Organizational culture is built on values and so is strategy. An organization´s founders imprint on it a a set of core values which are further developed or modified by the interplay of members and stakeholders and customers as operations get along.
Usually the organizational culture´s values determine strategy and the strategic choices. But sometimes foresight, environmental scanning and strategic analysis identify an organization´s adaptation gaps and the need to change organizational culture in order to ensure survival and growth. So it can work both ways because we need to consider organizations in their current fluid environments where change is the only constant and adaptation is a must.
The question of the extent to which org culture influences strategic thinking invites us to explore how it does this, as the preceding answers show. I would start with Ahmed Quinn's point that org culture and strategic thinking affect each other, and add that they are both constantly adapting to their environment, especially the forces of globalization.
I have led global business transformation - was Bell Labs and AT&T's top Organization strategist. The reality is that this is a symbiotic relationship. Need both in play to make shifts for future success. Strategic thinking is a cycle and when successful is always infusing good thoughts into an existing institution. The existing organization and people accept or reject the new thoughts. The strategy evolves with input, testing and sometimes jump starts. I have scars in my stomach and heart from this process, anyone who tries to do one without the other is mistaken. Change is hard, strategic thinking means taking new direction or actions. Change is challenge and must be organic - whether a flood or light rain.
Jeanette Galvanek , I agree that organic change allows for testing and reacting to ups and downs in an evolving environment, but the original question asked how organizational culture can influence strategic thinking. The symbiotic relationship you refer to (and that agree with!) can be tricky when a dominant corporate culture imposes its ways on its local subsidiaries, many of which are strategic to the company and guided by their own organizational cultural assumptions. Do you think multinationals integrate the organizational cultures of their subsidiaries into their strategic thinking today?
Ah yes, but remember that culture has to promote or reject change. Strategic thinkers have to understand this or aren't relevant. Strategy drives culture...but there is a way that I have been successful maybe three times for the largest tech company in the world... gulp...:) Deep industry, environmental, technology, customer, people, organization structure info drives Strategic Creation/comprehensive design. I have found that many people in the business already know pieces of these needs (unless this is a exiting of a business that is very private). Lot's of exceptions to my broad statements .
Defining that strategic future and then figuring out how to transition the "culture" along is essential. That typically means attitude shifts, policy change and resource re allocation. Big stuff. (Oh, typically need to exit 1/3 of the leaders- that is when culture shift follows strategy!)
Corporate strategists are only able to strategize about what they know and hear. and have deep respect for the "local" cultural and business practices. Be clear that when the strategy is a big business shift such as - we are now selling products to xyz and not services, either the multinational shifts or loses support.
Jeanette Galvanek's answer is so true. I have similar pains.
The point is that culture really drives everyone's beliefs, conceptions, attitudes, and behaviors -- which will influence strategy.
A strategy that doesn't fit the culture is likely to fail because it simply can't be implemented -- unless the leadership team truly understands organizational transformation (which very very few do).
(see http://www.iclinstitute.org/wp-content/uploads/2019/04/4.-How-Collaborative-Leaderss-Use-Culture-as-a-Force-Field-Understanding-Human-Behavior-V2.3.pdf and http://www.iclinstitute.org/wp-content/uploads/2017/04/8.-How-Leaders-Use-Culture-to-Get-High-Performance-V1.1.pdf )
Culture drives innovation and how people work collectively. If they collectively think in terms of short term benefits than it can seriously hamper strategic outlook of an organization.
Culture is how things really happen. There is no point in the definition of organizational mission on the website saying that people are important, the definitive thing is to know what happens when a crisis arises.