Strategy-Culture Matrix (Four basic alternatives in determining strategy…
one way to understand the relationship between an O's strategy and its culture
Four basic alternatives in determining strategy changes
reinforce change (negligible risk)
an O' needs relatively little strategic change, and the changes are very compatible with the existing culture
hence, the practitioner should emphasize several factors
forge a vision of the new strategy that emphasizes the shared values to make it work
reinforce and solidify the existing culture
manage around culture (manageable risk)
the key element is to manage around the culture, without confronting direct cultural resistance
the approaches include
reinforce the value system
reshuffle power to raise key people
use any available levers of change, such as the budgeting process and reorganisation
O' need to make some strategic changes, but the changes are potentially incompatible with the corporate culture
manage change (manageable risk)
therefore, the company can pursue a strategy requiring major changes and should manage the change by using the power of cultural acceptance and reinforcement
the change strategies emphasize on
Reshuffle power or raise key people
to positions important in implementing the new strategy.
Key people make visible the shared values and norms that lead to cultural compatibility.
Reinforce the new value system.
If the new strategic direction requires changes in marketing, production, and so forth, the changes should be reinforced by the O's reward structure
share the vision
The changes must be related to the overall goals and mission of the organisation. This builds on existing strengths and makes any changes legitimate to members.
O' implementing a strategy change that is important to the firm, where the changes are compatible with the existing corporate cultuure
change strategy to fit culture (unacceptable risk)
the proposed change important but incompatible with the culture
the challenge of changing the culture is an explosive long-term undertaking that is very difficult to achieve
an O' faces a different type of challenge
determine if strategic change is viable alternative or if strategy should be modified to fit more closely with existing culture