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How Organizational Culture Impacts Business Strategy

May, 2022

Organizational culture is a vital aspect that creates a direct impact on the business strategy of the organization. It is about the values that a company adopts and maintains while interacting with the employees, clients, partners, and vendors.

Organizational culture acts as the foundation of the company strategy, and it represents the values, policies, attitudes, and traditions that an organization holds and uses in its daily operation.

Every organization will have a unique culture. It is pivotal to ensure that the organizational culture matches the company strategy and is aligned with the vision and mission of the organization.

Let us see how organizational culture reflects on business strategy.

1. Build transparency
Trust and transparency are important factors that employees consider while working for a company. Employees prefer to work for your organization because they trust you, and it acts as the base for great company culture.
Organizations should be able to establish a culture of trust so that employees can look up to them and work sincerely.

Building a culture of transparency can have a significant impact on the business and employees as well. It is also essential to have open communication channels to have seamless communication across the organization.
Leveraging communication and collaboration channels act as an effective way to have uninterrupted collaboration.

2. Uphold innovation and creativity
Having a positive work culture make employees feel motivated and dedicated, and they tend to be more creative and innovative, which can, in turn, result in increased productivity. In such an environment built on positive work culture, employees are willing to go an extra mile to put in their hard work for the organization’s success.

3. Employee recognition is of importance.
Employee recognition is another keyway to improve organizational culture. Employee recognition helps to improve employee retention rates, and a simple token of appreciation or certificate of recognition can do the trick. Recognized employees will be more satisfied and productive, benefiting the organization.

4. Explicitly use organizational values.
The organizational values are the major cornerstone of your organizational culture, and the values should reflect in various areas as possible- such as while employee recruiting, onboarding, performance evaluation, etc. The blend of organizational value and culture helps guide the business strategy and make it successful.

5. Make collaboration the work standard.
Fostering a collaborative work culture improves employee engagement and thus enhances the company culture. Having a solid relationship among the employees and great teamwork can greatly impact employee motivation.

6. Give space for employee feedback.
The management should always be approachable and open to feedback. Make your employees feel that they matter in the organization and that their voices are heard. Receiving employee feedback through surveys and discussions will help you understand how your organization performs in your employees’ eyes.

To sum up
The organizational culture can have a direct impact on the business strategy. Always remember to maintain a positive and reliable environment that can fulfill the vision and mission of the organization.
Build strategies that give employees a satisfying place to work.

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