Culture and Strategy and the Influences of Culture in an Strategic Plan

Impacts of Culture and Strategy on Organizational Success
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Impacts of Culture and Strategy on Organizational Success
The Relationship between Culture and Strategy
The interplay between culture and strategy dramatically influences a company's success. The common ideas, beliefs, customs, and behaviors influencing the workplace and direct employee behavior are called culture (SHRM, 2018). Contrarily, strategy refers to a business's plan and course to accomplish its goals and objectives. Culture impacts strategy, and the latter, in turn, shapes the former according to the two-way link between them.
Firstly, culture affects strategy by establishing the basis and setting the scene for decision-making. The values and ideas ingrained in an organization's culture influence its leaders' strategic decisions (Naranjo-Valencia et al., 2016). For instance, a business with a culture valuing risk-taking and innovation is likelier to pursue a marketing and product development plan. A firm with a stable and influential culture could choose a strategy focusing on process improvement and cost-cutting.
Secondly, the strategy may influence culture by establishing priorities and goals consistent with the intended culture. The strategic plan of a corporation sends a message to its employees about the values and behaviors that are emphasized and rewarded (Naranjo-Valencia et al., 2016). For instance, establishing procedures and rules that support open communication, cross-functional initiatives, and acknowledging group accomplishments might result from a strategic purpose to promote cooperation and teamwork (Withaar, 2011). These efforts have the potential to gradually change the organization's culture to one that is more team-based and collaborative.
Whether Culture Influences Can Make or Break a Strategic Plan