6 - Strategy and organisational culture

Question 1

Chapter 6 learning outcomes

Answer 1

• demonstrate a thorough understanding of the meaning and importance of culture within an organisation
• understand the different types of culture models argued by Handy, Schein, Johnson and others
• consider why there is a need for a breadth of cultural awareness in our local, national, multinational and multicultural business environment

Question 2

CoSec and an org’s culture

Answer 2

CoSec will be part of the culture by virtue of being an employee

but their role will often require them to step back mentally or physically, to objectively consider how and why other people behave in certain ways

Question 3

Schein definition of organisational culture

Answer 3

The basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously, and define in a basic, taken-for-granted fashion an organisation’s view of itself and its environment

Question 4

Schein’s three distinct levels of organisational culture

Answer 4

Underlying assumptions - unconsciously guiding behaviour

Values - promoted within org to epitomise what org stands for and to guide individuals

Artefacts - visible and tangible evidence of org culture

Question 5

What is strategic drift?

Answer 5

The time gap between the development of the strategy and the changes within the environment

Question 6

4 phases within strategic drift process

Answer 6

Incremental strategic change
Strategic drift
Flux
Transformation or death

Question 7

Incremental strategic change (phase of strategic drift process)

Answer 7

Small changes that occur during long periods of relative stability - orgs adapt gradually without need for more radical change

Question 8

Strategic drift (phase of strategic drift process)

Answer 8

Occurs where micro or macro changes restrict org’s ability to amend strategy - causes gap between strategy and environment to widen

Question 9

Flux (phase of strategic drift process)

Answer 9

Caused by gaps developing during strategic drift stage - causes disagreements and complexity within org over how to respond

Question 10

Transformation or death (phase of strategic drift process)

Answer 10

Result that naturally emanates from stage of flux - agreed resolution to realign strategy with environment, or strategy ceases to exist

Question 11

Bias in strategy

Answer 11

Natural/cognitive can have great impact on strategy - we should try and be as objective as possible when developing strategy so it is important to be on the lookout for bias and be aware of types of bias

Question 12

Johnson’s 3 main cultural frames that need to be taken into consideration to understand individual’s behaviour

Answer 12

Geographic - national/regional influences

Organisational field - sector of industry with differing prof influencers

Organisation - intermix of subcultures and divisions within org itself

Question 13

4 elements within geographical cultural frame

Answer 13

• Relationship with authority
• Acceptance of inequality
• Longevity of a vision
• Tolerance of uncertainty

Question 14

4 elements within organisation cultural frame

Answer 14

Mission
Methods
Principles
Values

Question 15

Deal & Kennedy’s four distinct types of culture (and whether they are high/low risk, and fast/slow feedback) (and example of industry)

Hint: weird names

Answer 15

Work hard and play hard - low risk, fast feedback (sales departments)

Process - low risk, slow feedback (banks)

Macho, tough guy - high risk, fast feedback (sport)

Bet-your-company - high risk, slow feedback (oil companies)

Question 16

Johnson’s cultural web - 6 elements

Answer 16

Organisational structures - formal hierarchical lines and liens of communication

Power structures - significant decisions are made by certain people

Symbols - tangible visible presence of org

Stories - how people talk about the org

Rituals and routines - daily behaviour of individuals

Control systems - methods of monitoring and maintaining people

Question 17

Dominant culture

Answer 17

Majority of employees are driven by and moulded by overriding and often unchallenged set of values

Question 18

Strong culture

Answer 18

Core values are widely shared within org and drive org forward

Question 19

Weak culture

Answer 19

Minority are striving to get their views and values heard, following own goals rather than those of org

Question 20

Why can a weak culture become a liability?

Answer 20

Provides a barrier to change, prevailing culture will not be aligned with org’s goals

Question 21

Why can a strong/dominant culture become a liability?

Answer 21

Insistence on maintaining core values can lead to failure if org fails to recognise where values are out of step with changing macro environment

Question 22

6 areas that require constant vigilance to ensure alignment of the strategy with the culture of the organisation

Answer 22

silo thinking
dominant chief executive
leadership arrogance
lack of openness to challenge
lack of diversity
hierarchical attitude

Question 23

Why is it key for a CoSec to have a very close awareness of the culture of an organisation?

Answer 23

It helps explain people and organisational behaviour, and can be a significant area for an objective CoSec to challenge