Strategy implementation: two underestimated influencing factors
Every organization should have a viable strategy – but that alone is not enough. We observe time and again that two essential factors are underestimated in strategy implementation:
- the comprehensibility of the strategic positioning so that it can be operationalized and implemented,
- and the interaction between strategy and corporate culture.
Importance of a comprehensibly communicated, authentic future vision
The best strategy is of no use if it is not known in the organization or no one understands it. In order to make strategy implementation more effective and to make it more likely that the set goals will be achieved, it is important to break the strategy down into tangible measures across the organization: What does the strategy mean for the day-to-day work of individual departments? How does the performance of individual teams contribute to overall success?
A transparent and comprehensibly communicated strategic positioning, as well as an authentic, attractive future vision, generate clarity about the meaning and purpose of the organization. They enable action-guiding orientation to unfold in all business units and hierarchy levels.
The future vision comprises the future business policy identity and the associated future strategic positioning. It sums up the desired target state of an organization: What is to be achieved by the (new) strategic orientation? Who does the organization want to be in the future? The future vision ensures that the abstract becomes tangible and thus offers room for identification and active co-design of the change. If the future vision is jointly accepted, understood, and supported throughout the organization, this enables employees across all hierarchical levels to align their daily actions with the corporate strategy.
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Fit between strategy and corporate culture
To ensure that the organization supports the future vision, it is also necessary to consider the interactions between strategy and corporate culture. After all, the culture of an organization shapes the design and implementation of the future vision and thus the achievement of the strategic goals. Only when culture and strategic goals fit together can the strategy unfold its effect. If, on the other hand, the future vision and strategy do not harmonize with the evolutionary structures, routines, and values of an organization, the organizational culture will work against successful strategy implementation. In this case, the organization stands in its own way of achieving the strategic goals and blocks progress – without those involved even being aware of it.
If it is foreseeable or can already be observed that culture and strategy are not in harmony with each other and the existing culture limits the organization’s ability to perform and change, cultural development makes sense.
The first step is an analysis of the current corporate culture. In this way, the status quo can be discussed at management level and thus processed. The next step is to use the results of the analysis and the existing strategy map to determine what culture the organization needs in order to achieve the goals it has set. Based on this, a corresponding learning architecture can finally be developed – an intervention design that effectively interlinks organizational and personnel development and indirectly influences the corporate culture.
Read our free-to-download White Paper to learn what’s important in developing a contemporary corporate culture:
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We are always at your service+49 4102 69 93 22
Ask for free informationf.sedlak@spconsulting.de