It is so vital that international company Third Rock Management Consulting advises its clients to contemplate the possibility of changing their organization's culture when developing and implementing a new strategy. Without cultural alignment with strategy, the new strategy would likely fail. Strategic Management Basics Strategic management is the planning process through which company leaders formulate strategies for accomplishing company missions and objectives. These four steps outline a sequential strategic process whereby leaders analyze the company's current situation, prepare strategies, implement them and then review strategic effectiveness.
After reading this article, you will understand the basics of this powerful management and organisational culture tool. What is the Cultural Web Analysis?
The Cultural Web Analysis is a model where the organisational paradigm, convictions and assumptions within an organisation are clarified by means of a coherent whole of six elements. The paradigm, the organisational cultureexists within the web.
The model stimulates the way employees within an organisation interact with each other, how they handle their work, but also how the organisation as a whole relates to the outside world and the various cultures that exist in the outside world.
By analysing the six elements, the big picture of the organisational culture is formed. This creates clarity regarding the questions: There is a great need to manage the organisational culture because this affects the strategy and performances of the organisation.
The culture context A culture is shaped over a longer period of time, which makes it a fairly abstract subject. The same is true for organisational cultures. Because the shaping of a culture occurs unnoticed, the obvious character of an organisational culture hardly receives any attention. Only when strong impulses bring about changes in the organisation, both from within and outside the organisation, does an organisational structure become important.
Nevertheless, the obvious assumptions that are made regarding an organisational culture could play an important and impeding role when the organisation finds itself in a merger, for instance, and various organisational cultures must be joined. As the policy of an organisation and their values are often documented, little confusion usually arises where that is concerned.
Cultural aspects are a lot harder to put into words. The organisational culture ensures that people align their behaviour to each other and that similarities in thinking and acting arise between these people.
This happens within the organisations, but also in the external environment in which they operate. As a result, a network of organisations sharing the same values and therefore also displaying the same behaviour arises. Which decisions the organisations take depends on the organisational culture and the network they are a part of.
Johnson and Scholes distinguish two cultural contexts: The nation or region is based on social values that may differ from the values of the organisation. Particularly for internationally active organisations, it is important to understand and respect the regional culture.
The organisational context This refers to the similarities between organisations within the network. The organisations naturally have their own visions and missions and therefore also have their own strategies, based on their specialties.
The outside world must take into account these strategies to effectively do business with the organisations. The organisational context says something about the way in which organisations are managed and must be treated. An effective organisational culture is characterised by: The paradigm consists of six types of physical and observable utterances of organisational culture.
Stories These are the stories of events that are constantly talked about within the organisation. These stories are kept alive by the employees and are passed along to newcomers.
The stories are told in the hallways, in the canteen, or in the smoking area and are often about the heroes, villains, successes and failures of an organisation.
The stories reveal much about the values that apply within the organisation. Symbols The symbols are about recongisable expressions of the organisation, such as the office building, the corporate identity, the logo, the company cars, the functions, the dress code and the use of language.
Power structure The power structure is directly related to the paradigm, because the most powerful people within an organisation are deemed to have the most direct influence on the core assumptions and ideas within an organisation.
Organisational structure The organisational structure includes the hierarchical composition of the organisation and the relationship between people from these various layers of the organisation.
The informal and unwritten power structures are also part of the organisational structure. Control systems This element is regarding the way in which the organisation is being managed and controlled.
This includes the financial systems, the quality systems and rewards. How these rewards are determined and how these are distributed within the organisation also falls under control systems.
Rituals and routines Rituals are the events of an organisation in which they emphasise what is truly important to them and how they handle matters. Examples of this are:The Cultural Web Analysis is a model where the organisational paradigm, convictions and assumptions within an organisation are clarified by means of a coherent whole of six elements.
The next paragraphs guide you through undertaking a cultural web analysis, using the case of a head trying to address some irregularities in research financial practices. Think about what you would encounter in your own department in this situation, and then examine the examples of the web our department head exposed through his analysis.
The Cultural Web Analysis is a model where the organisational paradigm, convictions and assumptions within an organisation are clarified by means of a coherent whole of six elements. Cultural Web Analysis Strategy. THE CULTURAL WEB BEFORE HOWARD STRINGER Organizational culture sometimes influences the organizations strategy if taken for granted.
Culture has played a role in Sony’s current financial difficulties. They had power blocks which hindered the flow of communication and corporation between the management, designers, production and marketing.
We have used our powerful tool – the Cultural Web – to help managers address the challenge of strategy driven cultural change. Our Cultural Web was originated by Gerry Johnson and it is explained in several of his publications. MAPPING AND RE-MAPPING ORGANISATIONAL CULTURE: A LOCAL GOVERNMENT EXAMPLE ∗.
by Gerry Johnson. The imporatnt aspect from the Cultural Web for strategic decision-making is that of coherence. The greater level of coherence the greater likely addvantage ot the organization in competitive markets.
Strong cultures are a potent source of competitive advantage becuase they are do difficult to imitate.