What is the relationship between corporate culture and strategy Posted by Torben Rick June 7, October 31, Corporate CultureStrategy Strategy is rational and logical Strategyat its core, is rational and logical, clear and simple.
As such, it influences how well an organization can meet challenges—and make changes. Here we share the stories of two nonprofit leaders faced with having to transform their organizations and how they were able to align their cultures with their new strategies.
These, along with culture, are what Bridgespan refers to in its organization wheel see sidebar as the core elements of an effective organization. In this article, we hear from two nonprofit leaders who needed to change their organizations fundamentally in order to make them more effective—and how they were able to do so through addressing key levers for culture change.
Operating primarily in New York with adjunct service delivery in Florida and TexasLiberty Resources had long sought to add licensed mental health services to its portfolio, to provide access to specialty care for its clients.
However, a moratorium on new licenses had prevented it from doing so until Decemberwhen the opportunity arose to acquire an existing license through the purchase of a Syracuse-based mental health clinic in danger of closing due to financial distress.
Coyle envisioned that acquiring the clinic would allow Liberty Resources to provide the populations it served access to mental health care and treatment, and also maintain a much-needed service capacity that would otherwise be lost to the community.
There already was a significant waiting list for mental health services in Syracuse, particularly for children, and only two other private clinics existed in the county.
But although the acquisition kept the much-needed clinic open, it also presented a hurdle, namely, the challenge of bringing together two organizations with very different business practices.
Coyle had spent 20 years at Liberty Resources building an accountability culture, with strong reporting systems and a focus on measurable clinical outcomes. The newly acquired clinic did not have accurate accounting, finance, or data reporting systems; it did not measure outcomes or the efficacy of its clinical services.
That data alone told Coyle that the clinic was not operating as effectively as it could. Clinic staff argued that faith-based counseling was an embedded part of the organization and it should continue despite the losses.
But Coyle felt strongly that the clinic would not survive if it did not focus its resources on the core mental health services the community badly needed and drop the programs that were not economically viable.
The organization took productivity measurements, translated them into financial measurements to illustrate what was needed to sustain the operation, and created productivity standards for clinicians. It made it clear that the new expectations should be taken seriously.
Early on Coyle realized that some employees could adapt but others could not. Ultimately, in fact, nearly half the staff of the acquired clinic left, most by their own choice. He gave incentives to those who remained. But importantly, Coyle said that setting clear expectations and offering financial incentives alone were not enough to bring about the necessary culture change, even for those employees who stayed.
Liberty provided the functional technology that allowed clinic employees to see where they were meeting the new performance expectations and where they fell short. Liberty made sure clinic employees had clean chairs, private offices, computers, and even mundane items like tissues.
Resources to do their jobs more effectively. Liberty moved the clinicians out of their badly dilapidated space into a space that was explicitly designed to support their work—a building with specially designed therapy rooms and electronic access to medical records.
Coyle said the culture change manifested itself in a new sense of pride by both staff and clients—and even in clinical breakthroughs: One clinician reported that a patient who had been in therapy for a year said he felt safe in the new environment, and subsequently he made substantial progress for the first time.
In following through with doing what we said, trust began to emerge. New technology, including instant messaging, new phone codes for clinician safety, and the introduction of a centralized electronic medical record system also facilitated increased information sharing while enhancing efficiency.
Executive team members built trust with employees over time by communicating frequently, being visible, and following through on promises. They also were careful to demonstrate their unified support of the new approach and to be clear about the consequences of failing to embrace it.
Coyle moved slowly and carefully to introduce new disciplines to its mental health services, including contracting with a graduate medical school program to have nurse practitioners work in the clinic to help them meet degree program experiential requirements.
This proximity has encouraged opportunities to share knowledge and has introduced a culture of learning to the clinic staff. For example, video feeds allow for clinical instruction with Syracuse University and in-service clinical seminars are routinely provided.
Today, the clinic is on firm financial footing, its operations are vastly improved, and it is even tapping new potential. At its zenith, the former clinic had 24, patient visits.
Last year, Liberty had more than 42, serving 2, individuals and ensuring that each patient was connected with all of the services he or she needed. Previously, only one adult psychiatrist treated all patients.
Now there are psychiatrists for both children and adults, psychiatric physician assistants, psychiatric nurse practitioners, nursing, case management, and group therapy for children and adults.
The clinic also was the first in the state to be licensed for Suboxone Therapy used to treat opioid dependence.
Expanding its geography across New York state, the cultural lessons learned from the clinic acquisition will be applied as Liberty has added over staff in recent months.
A culture of change assures we remain relevant for our communities and the people we serve.May 29, · The noise around the strategy vs.
culture debate has reached deafening levels. My question is this; WHY? Elevating one position over the other is .
Using the Cultural Web. We use the Cultural Web firstly to look at organizational culture as it is now, secondly to look at how we want the culture to be, and thirdly to identify the differences between the two. The Katzenbach Center at PwC's Strategy& helps clients in the areas of organizational culture, leadership and teamwork, and informal organization and motivation.
Patty Azzarello is the founder and CEO of Azzarello benjaminpohle.com's also an executive, best-selling author, speaker and CEO/business advisor. She became the youngest general manager at HP at the age of 33, ran a billion dollar software business at 35, and became a CEO for the first time at 38 (all without turning into a self-centered, miserable jerk).
The Hayes Group International > Services > Organizational Strategy And Culture Organizational Strategy And Culture A “positive company culture” is the one common thread that connects all organizations in Fortune annual Best Companies to Work For survey (Levering & Moskowitz, ).
This package provides an essential guide to determining your organization’s current culture and shaping it to fit your strategy.