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Connecting Culture and the Dominant Strategy

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Alan Kennedy, Canada

Connecting Culture and the Dominant Strategy

The flaw in the Deal and Kennedy model is that it does not connect culture to the strategies being implemented by the organization.
In my book, The Alpha Strategies, Understanding Strategy, Risk, and Values in Any Organization, I argue that there are eight strategies common to all organizations, big or small, and regardless of whether they are for-profits, not-for-profits, or public sector organizations.
One of the eight strategies will always be the dominant one leading the remaining seven. It is the dominant strategy that gives the organization its culture. I define strategy as a choice of action. Culture is a product of the choice of action and acceptable behaviors reflected in the dominant strategy.
To demonstrate how the dominant strategy reflects culture, let's consider examples of organizations and their dominant strategy:
1. Nike and Coca-Cola are known as incredible marketing companies; their culture is all about marketing.
2. Banks are financial cultures
3. FedEx and Four Seasons Hotels are great service delivery companies
4. Intel and Google are driven by R&D/technology.
To complete the listing of the eight strategies as dominant strategy and setting the culture of the organization:
5. Insurers, pension funds, and government regulatory agencies are lead by the risk strategy. As a result, their culture is centered on risk management.
6. Walmart and McDonald's are growth companies. The culture is about growth. They never stop growing.
7. IBM is a business definition company focused on constantly adapting its competitive positioning in order to access high margin markets.
8. Finally, in most sole proprietor businesses, it is the "people" strategy or focus on the owner that is dominant. The culture is reflected in the owner.
The Deal & Kennedy Model focuses primarily on the people strategy and may be useful for understanding that one culture. However, the model provides little insight on culture as because it ignores the other seven strategies as possible dominant strategies setting distinct cultures.
 

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1
Goffart
Management Consultant, Belgium
 

Linking Strategy, Culture and Organization

I like your 8 dominant strategies. Indeed, the dominant strategy may influence the culture. But the... Sign up

 
0
Nihad Almahrooq
Consultant, Saudi Arabia
 

The Difference of Culture Type and Strategy Derivates Modeling

The eight values that Deal and Kennedy brought about for cultures forming prospective seems suitable... Sign up

 

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topic How to Deal with a Culture of Gossip and Backbiting?
topic Innovation in a Target / Performance Culture
topic Culture Types Useful Model
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topic International Culture Types
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More on Corporate Culture:
Summary
Discussion Topics
🔥 Building Blocks of Organizational Culture: The Six Components of Corporate Culture (Coleman)
topic Eight Types of Organizational Culture (Groysberg)
topic Perfect Definition of Corporate Culture (Uttal, 1983)
topic 12 Culture Factors of Drennan?
topic Creating an Innovative Organizational Culture
topic Culture of Accountability
topic Another Culture Type: the Yes Culture
topic Do Competitive Work Cultures Lead to Better Performance?
topic How to Deal with a Culture of Gossip and Backbiting?
topic Innovation in a Target / Performance Culture
topic Culture Types Useful Model
topic The Effects of Leadership on Organizational Culture
topic High Performance Work Culture
👀Connecting Culture and the Dominant Strategy
topic International Culture Types
Special Interest Group

SIG Leader

Do you know a lot about Corporate Culture? Become our SIG Leader

Knowledge Center

Corporate Culture
Knowledge Center



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