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• W1791641598 abstract "This paper presents a schematic, procedural guide to describe the strategy/culture linkage. The paper starts with a quick review of a companion paper's synthesis of various authors' hypothesized dimensions of culture. Porter's (1985) value-chain concept is then presented. A scheme and procedure are suggested to analyze the core functional area and value-chain imperatives of a given strategy and relate these to key dimensions of culture. Differences between an ideal culture to accommodate a strategy and the current culture can be analyzed and recorded. A change program can then be suggested to alter either strategy, culture or both so that congruence can be gained . THE STRATEGY-CULTURE LINKAGE: A PROCEDURAL GUIDE A previous, companion paper reviewed the current empirical/framework oriented literature on culture. Various authors hypothesized their dimensions of culture and the paper delved into describing and reviewing them. The paper then proposed a synthesis of the dimensions. This paper would like to start where the first paper left off. It will describe a diagnostic and analytic procedure that can aid management in assessing the linkage between strategy and culture. It will start with the dimensions of culture presented in the first paper and then attempt to integrate them with Porter's (1985:33-61) value chain analysis. The level of the organization where this analysis applies is at the top: the tone and thrust of the paper is to aid top managers in their quest to configure and design some of the key areas of their responsibility. The paper's emphasis will be on top management's role as administrative architects. I. The Procedure Outlined It would be useful to outline the major sections of the procedure to get a roadmap of where the paper is headed. The eight step procedure can be outlined as: 1. Present and describe underlying dimensions of culture. 2. Use the most appropriate description of business unit and/or corporate level strategy. 0 Analyze the functional imperatives of the strategy 0 Analyze the value chain (Porter, 1985) imperatives of the strategy 3. Analyze the current, actual pattern of the cultural dimensions for the SBU or corporate level. 4. Analyze the relation between the functional and value chain imperatives of the strategy and the hypothesized ideal culture to accommodate it. s. Assess the difference between the current, actual culture and the ideal culture as suggested by #4 above. 6. Assess the zone of indifference between the actual and the ideal culture. 7. Assess the strategy-culture risk profile (Davis, 1984). 8. Plan a change program to change certain problematic dimensions of culture or the strategy or both. 2 It will be useful to describe each of the steps more explicitly and offer some caveats from the author's attempt to use the framework in the banking and savings and loan industries. 1. Present various dimensions of culture The previous companion paper reviewed the empirical/framework oriented literature on culture and presented this synthetic list of the underlying dimensions of culture: 1. Clarity of Direction the extent to which the company emphasizes creating clear objectives and plans to meet them. 2. Company Stretch the extent to which the company sets venturesome goals and approaches its business innovatively. 3. Integration the extent to which units are encouraged to operate in a coordinated manner. 4. Top Management Contact the extent to which people get clear communication and support from top managemen~. S. Encouragement of Individual Initiative describes an emphasis on a high degree of delegation. 6. Overt Conflict Resolution the extent to which people are encouraged to air conflicts and criticisms openly. 7. Performance Clarity the extent to which the company makes performance expectations clear to individuals. 8. Performance Emphasis extent to which the company demands high levels of performance from individuals and holds them personally accountable for results. 3 9. Action Orientation refers to the timeliness with which decisions are made, a sense of urgency to get things done and a responsiveness to changes in the marketplace. 10. Compensation extent to which people perceive the company as paying competitively and fairly, as well as relating that pay to performance. 11. Human Resources Development extent to which companies provide opportunities for individuals to grow and develop within the company. 12. External vs. Internal Emphasis the emphasis on the task satisfying the consumer. The internal portion of this dimension focuses on the extent of internal organizational activities such as committees and bureaucratic procedures. 13. Bias Toward Innovation tries to measure the difference between a reluctance to adopt any new procedure that is not well established vs. the constant search for novel and distinct new goods, services and procedures. 14. Complexity the degree of the tendency of organizations to develop elaborate procedures and structures. 15. Formalization the degree of the tendency to have a formal mechanism for all procedures and decision making. This dimension ranges from elaborate written forms and documents to only verbal expression. 16. Empirical vs. Non-rational Decision Making degree of the difference in decision making style. 17. Intimate Concern vs. Disposable Labor the degree of the difference in management's philosophy as to how the asset of human capital should be viewed. 18. Integrity Priority vs. Expedient Priority the degree of the difference between management philosophy being one of opportunism or whether management and the firm should spend its energies to attempt to be a long term player. This list, while quite lengthy, represents the distinct dimensions of culture as espoused by various authors. While some of the dimensions could undoubtedly be combined, this awaits a more thorough statistical analysis (such as through factor analysis). For the purpose of this current paper, which is expository, we can refer to these eighteen dimensions as a comprehensive, though tentative, list of distinct dimensions. If these eighteen dimensions are representative of the underlying construct of culture, then we should have" @default.
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• W1791641598 title "The Strategy-Culture Linkage: A Procedural Guide" @default.
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