Business strategy is an attention getterespecially when it changes. For instance, when organizations move from tried-and-true, its always worked growth to innovation and globalization, instant chaos can occur. Other strategy changes related to mergers and acquisitions, a new CEO coming on board with different priorities, and nimble competitors popping up that must be challenged are some other examples of the clear need for a change in strategy. What isnt always so obvious is the fact that unless company culture supports the new strategy, organizations can struggle or even fail to adapt to these changes.

A companys culture is embedded in its DNA. It grew up along with the company and is rooted in values, beliefs, and behaviors. Culture owns the power over strategy. People are the reason strategies succeed or fail, and culture controls and moderates behavior across the entire workforce. If people are not aligned with the right values, beliefs, and behaviors that support the new strategy, they will be working against themselves and the company. Not only will they be frustrated, but the best people also often will leave, which puts the new strategy at further risk.

Do Companies Realize This?

In a July 2014 Korn Ferry survey of more than 500 global respondents, 72 percent said they feel culture is extremely important to organizational performance, but only 32 percent said their organizational culture aligns to a great extent with their business strategy. The survey also showed that despite the high ranking in importance, only 25 percent believe they have identified and communicated their culture to a great extent, and only 35 percent believe their employees are able to articulate their culture to a great extent.

The concept of organizational culture has never been more critical or more complex, and the pressures of change make it imperative to bottom-line results; yet companies struggle and understandably so. When things are going well, organizational leaders may not consider why or how culture plays a role. Its often only when things are not working or when differences in cultures surfacesuch as in mergers and acquisitionsthat culture comes to the forefront. For example, it can be easy for people to start blaming one another for being difficult or doing it wrong or judging others as less productive, less driven, or unorganized during a merger or acquisition. The reality is that those differences usually are driven by cultural differences, and each legacy group is living out its sense of this is how we work while not understanding how the other culture differs. Differences are not wrong or right; theyre just different. Although company leaders usually understand the importance of culture, it can be very challenging to self-diagnose the current situation and determine what culture would be ideal to take them where they need to go. They also may fear losing the core DNA that gives an organization its identity, which is why its important to realize that although drastic changes may be needed, a company can reinvent itself without losing its sense of self. Core values such as service, the belief in putting the customer first, integrity, and respect are elements that can be carried through and remain as essential to a companys existence.

Five Strategic Changes That Require Culture Change When does culture need to be changed?

The following situations dont provide an exhaustive list, but they are the most typical ones that require specific types of culture to support their success:

Strategic redirection at the top. A new CEO or an existing one often instigates strategic changes. Companies may be going private, bringing back cultures of innovation and service, etc. Market pressures and the need for reinvention drive significant change. Many CEOs want to shape the culture to leave a lasting legacy, as well.

Mergers and acquisitions. When two organizations merge or one acquires the other, there is a shift not only in the balance of power, but also in the identity of the joint firm. Even with due diligence on culture before a deal is signed, companies find that what looks compatible on paper may not be so in reality. People resist change and are loyal to their former cultures. They are often unaware of how culture fully influences their perspectives, expectations, and overall work habits. The mergers and acquisitions that fail or destroy shareholder value frequently do so not because of strategic mistakes but because of lack of attention to cultural integration.

Globalization. Companies are growing globally, which requires changes in how they operate, and this creates a new workplace realityone with teammates, executives, and workforces who are from diverse cultures and geographies. There can be many culture issues, and although they may be apparent, they can be complex to navigate. Global success hinges on culture agility. Without it, the strategy typically fails.

Spin-offs and start-ups. Spin-offs or start-ups usually need a different culture than the parent company. They may need to be leaner or embody different business models. The parent and child cultures need to coexist in the same family with mutual understanding, the ability to communicate effectively, and respect for each others differences.

Culture capture. This one is a bit different as it isnt always change that precipitates the need.

Instead, the desire to identify and preserve what has made a company successful is its foundation. In this case, the intent is to preserve those core features, so they are not lost in succession or in future growth. This process includes the important step of realizing what no longer supports the new business model, what is essential to the DNA of the organization, and what new cultural aspects are in need of nurturing.

How Companies Transform Their Cultures

To begin, you need to know what your current culture is, what future-state culture you need, where your gaps and challenges are, and what actions to take to transform your culture to align with your strategy. First, a word of caution, though. Culture change requires patience and persistence. Changing a culture requires intense focus and long-term support from management as well as the realization that there are differences among traits that are hardwired into the culture (value based) versus those that are changed more readily (learned).

Value-based traits take more time to change. These often include behaviors that are rooted in national cultures. Culture change cannot happen in silos and must have sustained support from the top and buy-in from the entire organization to truly occur. Change is possible, however, and with the right process and support, it can infuse companies with the new life and energy needed to align people with strategies.

Use the following questions to engage with the journal article and form your critical analysis:

Objectives: what does the article set out to do?

Theory: is there an explicit theoretical framework? If not, are there important theoretical assumptions?

Concepts: what are the central concepts? Are they clearly defined?

Argument: what is the central argument? Are there specific hypotheses?

Method: what methods are employed to test these?

Evidence: is evidence provided? How adequate is it?

Values: are value positions clear or are they implicit?

Literature: how does the work fit into the wider literature?

Contribution: how well does the work advance our knowledge of the subject?

Style: how clear is the author's language/style/expression?

Conclusion: a brief overall assessment.