WHY CORPORATE CULTURES MATTER TO THE STRATEGY EXECUTION PROCESS?
?
- A culture that is well matched to the chosen strategy and the requirements of the strategy execution effort focuses the attention of employees on what is most important to this effort.It directs their behavior and serves as a guide to their decision making. In this manner, it can align the efforts and decisions of employees throughout the firm and minimize the need for direct supervision.
2. Culture-induced peer pressure further induces personnel to do things in a manner that aids the cause of good strategy execution.The stronger the culture (the more widely shared and deeply held the values), the more effective peer pressure is in shaping and supporting the strategy execution effort. Research has shown that strong group norms can shape employee behavior even more powerfully than can financial incentives.
3. A culture that is consistent with the requirements for good strategy execution can energize employees, deepen their commitment to execute the strategy flawlessly, and enhance worker productivity.When a company’s culture is grounded in many of the needed strategy-executing behaviors, employee feel genuinely better about their jobs, the company they work for, and the merits of what the company is trying to accomplish. Greater employee by in for what the company is trying to accomplish boosts motivation and marshals organizational energy behind the drive for good strategy execution. An energized workforce enhances the chances of achieving execution critical performance targets and good strategy execution.
