Tuesday, April 03, 2007

Culture as business Strategy

As organizations spread across globe and set operations in different parts of the world, organizational culture is acquiring a whole new meaning. Growing decentralization and growth in no of various units and function means each unit is given the scope to define its scope of operation within the broad organizational framework.Structural changes have been made to allow flexibility of approach and decision making has been decentralized to enable organization scale the challenge of growth and diverse business requirement. All this means organization culture becomes the critical enabler in facilitating a cohesive and well knit unit. Bain & Company’s recently released the Results of Bain & Company’s Management Tools & Trends 2007 study also suggests that Culture continues to be the most important strategy for business success.

The top 5 management trends as described in the report are:

91% agreedCulture is as important as strategy for business success
87% agreed that Information technology can create significant competitive advantages
79 % felt innovation is more important than cost reduction for long-term success.
73 % agreed that consolidating and sharing back office operations improves both cost and quality
66 % agreed that environmentally-friendly products and practices are an important part of our mission

The other two aspects are equally interesting as IT tools and innovative practices are also considered as crucial factors which have considerable impact on the way business will shape in the days to come.

It also suggests that the ten most used management tools included:

§ Strategic Planning
§ Customer Relationship Mgmt.
§ Customer Segmentation
§ Benchmarking

2 comments:

zang said...

Nice Post
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Online said...

I can tell you from my own experience that culture, in a business settting, is the yeast in the bread. Without it, you may have all the other ingredients of success, but the end result will be flat and tastless.