Deepdive #2

Culture Strategy

This is how to bridge business strategy and team culture

A 'good culture' isn't enough. Organizations need to align their strategy and culture to build a competitive advantage.

Culture follows strategy

At least, it should. Team culture represents the "how" of your business strategy. Organizations must define their culture and continuously shape it consistently to align with their business objectives. This is essential for developing the culture that enables them to achieve these goals. But how do you approach this? How do you translate your intended strategy into consistent leadership and team rituals?

Without the right team culture, every strategy is merely a plan. A clear, strategy-enhancing culture is indispensable for turning plans into results. Many companies view "business strategy" and "team culture" as separate topics, often with different responsibilities within the organization. This leads to undesirable consequences. It's a missed opportunity, as consciously defining and developing your culture in alignment with your intended strategy is crucial and highly achievable.

In this deep dive, we will explain how to develop a strong team culture that aligns with your business strategy. We'll cover what culture is and the factors that shape it. We will also explore whether every business strategy truly requires a shared culture. Additionally, we will examine different cultural archetypes and determine which archetype best fits specific strategies. Finally, we will discuss the type of leadership and team rituals that align with each cultural archetype. These insights will help you create a culture that enables your organization to achieve its goals

QUESTION 1

What is Culture, and What Shapes It?

In essence, culture is the sum of all behavior. Where there is behavior, there is culture. Any group of people coming together inevitably develops a unique culture. This culture continuously evolves and is influenced by shared goals, beliefs, routines, needs, and values within the group.

Cultures are maintained or developed through communication about what behavior is expected, encouraged, or permitted. These signals indicate what is valued, what is important, and what people do to belong, be accepted, and be rewarded

Change these messages, and you change the behavior. Change the behavior, and you change the culture. But how do you do that? As a leader, there are two tools you can use to consciously (or unconsciously) influence behavior in a team: Leadership Messages and Team Rituals.

Leadership Messages

All observable intentional (and unintentional) signals from leadership to which team members assign meaning. Examples include: who gets promoted? What gets rewarded? Where is time/money spent? What takes priority in times of pressure?

Team Rituals

All recurring team-building activities in which all team members (can) participate, such as: attracting and hiring new talent, onboarding new team members, learning and development, performance management, and employee engagement.

QUESTION 2

Does every business strategy actually requires one shared culture?

Before we delve into selecting and adapting the cultural archetype that best supports your specific business strategy, it is important to consider whether that strategy is indeed best served by one shared culture.

Many companies consist of a mix of different locations, expertise, and skills spread throughout the organization. This often leads to a high degree of autonomy for individual parts, each with its own subculture. Is that a bad thing? This is often the case with larger companies operating from multiple locations. However, this can also be particularly relevant in the context of mergers and acquisitions, where different companies are merged into a new company and a new shared culture (or cultures) must emerge.

To answer the question of whether all these parts of a company need to be connected by a single centrally defined culture, we need to look at the business strategy: is success entirely dependent on sharing one central culture, or can we be successful while acknowledging the existence of certain subcultures? A company does not necessarily have to operate from one culture. In fact, there can be good reasons to opt for a different cultural strategy. Companies can choose from three fundamental cultural strategies:

One central culture

All employees are considered part of exactly the same cultural DNA, regardless of expertise or location. This is usually the right strategy for teams that are highly dependent on strong integration and collaboration between different teams.

Separate cultures

When the business strategy is not focused on building one central brand or identity, but rather when bringing everyone into one culture yields more disadvantages than advantages. This can be the case if the strategy relies more on the authority and expertise of business unit leaders, where central management plays a more supportive role. This approach is also suitable when there is no need for close collaboration and you do not plan to share talent, expertise, or resources between different teams.

Coupled cultures

In this strategy, different parts of the company develop their own cultural identity while simultaneously sharing some common values and aligning with cultural practices (rituals). This promotes collaboration, talent development, and operational efficiency. This cultural strategy is often the right choice when the business strategy depends on both broad and deep expertise, attracting joint customers, and achieving consistency and cost savings in talent acquisition and development.

QUESTION 3

Which cultural archetype best fits the company strategy?

Once the scope of your cultural strategy has been established—one central culture, separate cultures, or loosely linked cultures—it's time to define the optimal target culture that supports your business strategy. While every culture is unique, there are five archetypes that are useful in defining your intended culture.

Each archetype has its own characteristics and is suitable for specific strategic goals. By choosing the right archetype, you can set up cultural elements that most contribute to the success of your organization.

To determine which culture type best fits your company, it's important to ask yourself the crucial question: What is our goal, and how do we try to stay ahead of our competition?

ARCHETYPE 1

The Achievement culture

Business strategy: This strategy focuses on beating the competition by continuously optimizing performance, reliably achieving objectives, delivering the highest quality, and acting and deciding quickly.

Cultural archetype: The Achievement-culture is geared toward high discipline, where individuals, teams, and the organization are expected to deliver what they promise. Discipline and keeping agreements are valued above everything else. Openness and transparency are also important, as are speed and focus. When making decisions, everyone commits to the choices made and feels ownership of those decisions.

ARCHETYPE 2

The Customer-Centric culture

Business strategy: This strategy focuses on differentiating from the competition through customer satisfaction and loyalty, emphasizing customer service, responsiveness, and unburdening.

Cultural archetype: In the Customer-Centric culture, a deep understanding of customers' needs is the foundation of all decisions. Everyone within the organization is knowledgeable about customer desires, simplicity is greatly valued, and employees have the opportunity to make a tactical (customer) impact.

ARCHETYPE 3

The Innovation culture

Business strategy: This strategy focuses on the ability to innovate faster and better than the competition, ultimately staying ahead of them.

Cultural archetype: In the Innovation culture, the main goal is the successful implementation of new ideas. Visionary and unconventional thinking, fast learning, and taking risks are important characteristics. There is a love for ideas and curiosity, and the organization can handle uncertainties well. Decision-making is focused on navigating unknown territories.

ARCHETYPE 4

The One-team culture

Business strategy: This strategy relies on a seamless customer experience, successful collaboration between teams, and realizing organizational synergies.

Cultural archetype: In the One-team culture, effective collaboration between teams is the highest goal. Everyone is encouraged to keep the bigger picture in mind when making decisions. Processes and disciplines are shared, roles are clearly defined, and solidarity within the team is ensured once a decision is made.

ARCHETYPE 5

The Greater-Good culture

Business strategy: This strategy combines stakeholder needs with social responsibilities such as environment, citizenship, and sustainability. It focuses on a broader responsibility towards the community.

Cultural archetype: This Greater-Good culture is driven by the mission to transform the world and adheres to certain values. Employees are expected to contribute to the well-being of the broader community and act in service of responsibilities that reach beyond just their customers.

QUESTION 4

What type of leadership and team rituals fit these archetypes?

Each cultural archetype has a direct impact on the effectiveness of leadership in shaping the desired culture. This is achieved both through the messages leaders convey and the way team rituals—such as recruitment, onboarding, talent development, and performance management—are structured. These elements reinforce a culture that best aligns with the mission of the organization. By consistently applying both means, leaders and teams can develop the desired behavior over time that promotes the culture.

Below, you can see how each cultural archetype leads to different accents in both leadership messages and team rituals.

Leadership messages

In an Achievement culture, leadership messages mainly emphasize responsibility and result orientation. They make it clear that team members are accountable for their performance. Meetings focus on setting clear targets and discussing progress. Mistakes are openly shared; in the case of persistent underperformance, leaders intervene quickly. Meetings start and end punctually with concrete actions.

Team Rituals

Within this culture, established on high standards and personal dedication, the team adheres to a 'work hard, play hard' mentality, with clear guidelines. Mentoring is hierarchical and intensive, and there is a strong link between performance and reward. Team members are acutely aware of their impact on the organization.

Leadership Messages

In a customer-centric culture, these are focused on the customer experience. Leaders invest in conversations with customers and integrate their needs into decision-making processes. Investments are aimed at improving the customer experience, with customer research being as important as financial results. Exceptional customer experiences are celebrated and serve as inspiration.

Team Rituals

These, within this culture, focus on actively involving employees in customer strategies. During onboarding, new employees undergo training focused on customer-centricity. Customer visits are part of their work, and job rotations provide team members with insights into various customer contacts. Customer satisfaction and feedback are essential for their performance.

Leadership Messages

In an innovation culture, they are focused on a clear vision for the future and promoting a forward-thinking mindset. Leaders not only communicate their ambition but also inspire team members to think outside the box, embrace creativity, and challenge the current status quo. They are willing to take calculated risks to achieve innovations and adapt easily to changes. Experimentation is encouraged, and resources are allocated to innovative projects. Leadership encourages delegated authority so that team members can make decisions independently.

Team Rituals

Within this culture, they reinforce an innovative mindset by emphasizing bold decisions, stimulating initiative, and cultivating a shared vision. New employees bring fresh insights through pilot projects. Peer mentoring promotes knowledge sharing and talent development, independent of hierarchy. Innovation and idea generation are woven into performance management, with cross-functional collaboration and 360-degree feedback. Regular reviews and retrospectives support continuous improvement and knowledge sharing.

Leadership Messages

Within the One-Team culture, they are focused on promoting overall collaboration within the organization. Leaders ensure that every team member feels valued and involved in the decision-making process, and they encourage transparent communication within and between teams. By providing support and resources that foster collaboration and knowledge sharing, they build a culture of trust, with integrity, reliability, and well-aligned incentives at its core.

Team Rituals

Within this culture, solidarity and collaboration are promoted, supported by an extensive onboarding process that establishes direct connections between departments. Career paths encourage rotations within the organization, while mentorship and clear reporting lines ensure knowledge sharing and enhanced collaboration. The reward system recognizes and values employees who support others, contributing to a culture of mutual support and collective success.

Leadership Messages

In the Greater Good culture, leadership messages primarily focus on enhancing engagement with the mission and values of the organization. Leaders maintain high ethical standards and serve as role models for others. They motivate and inspire team members to connect with the company's purpose. In addition, they understand the social and environmental impact of the company's activities. These leaders foster a sense of community and social responsibility, both within and outside the organization.

Team Rituals

Team rituals focus on nurturing passion and commitment to the mission, with an emphasis on choosing a purpose over an 'ordinary' job. During the onboarding of new team members, the focus is on connecting with the mission and understanding integrity processes. Time is spent on personal development and volunteering. The organization considers indicators that take into account the broader impact on the community and integrity concerning the mission. Activities such as company events and community initiatives are common, as are leadership reviews that measure team engagement.

WRAPPING UP

Culture is a powerful means, not a goal in itself.

Wherever you are in the process of shaping your culture, remember: culture is a powerful tool, not an end in itself. Your target culture should serve as the foundation for realizing your business strategy, which begins with an inspiring and clear mission. Without this mission, it is simply not possible to build a sustainable culture.

With a clear mission, defining the desired culture and its core values forms the basis for a future-oriented cultural trajectory. If approached strategically, it becomes an inspiring process that fosters clarity, engagement, and pride within your organization. By actively involving employees and adopting a transparent approach, you create ambassadors who powerfully convey your vision and culture, helping to build a successful organization.

Other resources

Inspiration session – The Culture Factor

A short teaser of our inspiring talk 'The Culture Factor': how successful companies unleash the business value of culture.

Mission Statement: a guide to defining the 'why, what and how' of your company

The mission of your company is what should guide your cultural values. Get inspired and use this guide with examples and an interview to help you clearly state your mission.

Co-writing pre-read

Invite and prepare the participants of the co-writing sessions.

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