The Cultural School of Strategy Formation
The Cultural School of Strategy Formation is one of the ten schools of thought on strategy formation, as proposed by Henry Mintzberg, Bruce Ahlstrand, and Joseph Lampel in their book "Strategy Safari." This school emphasizes the influence of organizational culture on the development and implementation of strategies. According to the Cultural School, strategy formation is a collective process shaped by the shared values, beliefs, and norms within an organization.
Purpose: The main purpose of the Cultural School of Strategy Formation is to highlight the importance of organizational culture in shaping strategy. It recognizes that strategy development and implementation are influenced by the collective values, beliefs, and norms of the organization's members, and that these cultural factors play a critical role in determining the success of strategic initiatives.
Role: The role of the Cultural School is to provide a perspective on strategy formation that emphasizes the influence of organizational culture. It offers a contrasting view to other schools of thought, such as the Design School or the Entrepreneurial School, which focus on rational analysis, planning, or the role of individual leaders.
Components: The Cultural School of Strategy Formation comprises several key components:
- Organizational culture: The shared values, beliefs, and norms that shape the behavior and decision-making processes within an organization.
- Strategy formation as a collective process: The development of strategy as a result of the interaction and negotiation among organizational members, shaped by their shared cultural values and beliefs.
- Cultural alignment: The need for strategy to be aligned with the organization's culture to ensure effective implementation and acceptance by organizational members.
- Cultural change: The potential for strategic initiatives to influence or be influenced by changes in organizational culture.
Importance: The Cultural School of Strategy Formation is important because it recognizes the critical role that organizational culture plays in shaping strategy. By emphasizing the influence of shared values, beliefs, and norms, the Cultural School helps organizations understand the potential barriers and enablers of successful strategy implementation and adapt their strategic initiatives to align with the organization's culture.
History: The Cultural School of Strategy Formation emerged in the 1980s and 1990s, as researchers and practitioners began to recognize the importance of organizational culture in shaping strategy and performance. It was later proposed as one of the ten schools of thought on strategy formation by Mintzberg, Ahlstrand, and Lampel in their book "Strategy Safari," published in 1998.
Benefits:
- Recognition of the role of culture: The Cultural School acknowledges the significant influence of organizational culture on strategy formation, providing a more realistic and nuanced view of the strategic decision-making process.
- Improved implementation: By emphasizing the need for cultural alignment, the Cultural School can help organizations ensure that their strategic initiatives are more effectively implemented and accepted by organizational members.
- Enhanced adaptability: Understanding the influence of culture on strategy formation can help organizations better adapt their strategic initiatives to align with the organization's values, beliefs, and norms, enhancing the likelihood of success.
Pros and cons:
Pros:
- Recognizes the critical role of organizational culture in shaping strategy.
- Helps organizations ensure effective implementation and acceptance of strategic initiatives.
- Enhances adaptability and alignment with organizational values and beliefs.
Cons:
- May overemphasize the role of culture, neglecting the importance of rational analysis, planning, and the role of individual leaders.
- Can be difficult to assess and measure the impact of culture on strategy formation.
Examples to illustrate key concepts:
- A global corporation with a strong culture of innovation and risk-taking develops a strategy that emphasizes the development and launch of new products and services. In this case, the Cultural School of Strategy Formation highlights the importance of aligning the organization's strategy with its cultural values to ensure effective implementation and acceptance by employees.
- A nonprofit organization with a culture of collaboration and consensus-building adopts a strategy formation process that involves extensive input and feedback from its staff, volunteers, and stakeholders. By recognizing the importance of the organization's culture in shaping strategy, the Cultural School of Strategy Formation emphasizes the need to ensure that the strategy reflects the shared values and beliefs of the organization's members.
- A technology company with a hierarchical and risk-averse culture struggles to implement a new, aggressive growth strategy that requires significant changes in the organization's structure and decision-making processes. In this example, the Cultural School of Strategy Formation highlights the potential barriers that organizational culture can pose to the successful implementation of strategic initiatives.
In conclusion, the Cultural School of Strategy Formation is a perspective that emphasizes the influence of organizational culture on the development and implementation of strategies. By recognizing the critical role that shared values, beliefs, and norms play in shaping strategy, the Cultural School provides a contrasting view to other schools of thought that prioritize rational analysis, planning, or the role of individual leaders. While the Cultural School has its limitations, such as potentially overemphasizing the role of culture, it remains an important perspective for understanding the impact of organizational culture on strategy formation and implementation.
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