Part of the strategic planning process is for a company to conduct both an external and internal assessment.  With respect to an internal assessment, organizational culture will play an important part and would form part of an “Internal Factor Evaluation Matrix” (Fred David).  Only once an organization has assessed its own strengths can it then devise its strategies.

One aspect of an internal assessment will be to examine and understand organizational culture which can be an outgrowth of the organizational stage of development of the company.  It is important to bear in mind to distinguish between national cultural differences and those that may be attributable to organizational dynamics.  For example, are small and medium sized enterprises more easily understand because of the Hong Kong context or because of their stage of development? 

Hong Kong has many entrepreneurial companies.  Part of the manner in which they function could be described as part of the entrepreneurial dynamic—fast-moving, adaptive, responsive to the market, flat organizational structure and strategy as an outgrowth of the mind of the entrepreneur.  At the same time, there are certain elements that are particular to the Hong Kong Chinese culture, such as the patriarchical nature of the firm.

With respect to stage of development, one leading management thinker, Henry Mintzberg, points out, for example, that the entrepreneurial organization and the intrapreneurial organization have fundamentally different structures, and they flourish in different contexts.  An entrepreneurial organization has a visionary model for strategy formation:  strategy is bold, and wrapped up in the founder’s vision, with a precise execution method.  By contrast, the intrapreneurial organization has a grassroots model:   unconventional strategies respond continuously to a complex, unpredictable environment.

The nature of innovation varies depending upon the type of organization, in terms of size and reporting structure.  Is innovation perceived as a collaborative process or one that is limited to one part of the organization?  Does innovation involve external stakeholders?  The current web environment facilitates extensive collaborative networks outside the organization.

A company must conduct a thorough internal assessment to understand its own cultural capabilities.  With respect to an innovative culture, an important determinant will be the stage of development of the organization, whether an entrepreneurial startup and a more mature intrapreneurial firm.

Once the cultural capabilities of an organization are identified, this will then allow for the transmission of those cultural values both within the organization and to external parties.  In addition, it will allow those cultural values to be nurtured, strengthened and incorporated into competitive advantage. 

 

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The contents of this series are adapted from Dr. Rick Goossen’s paper on “Strengthening Competitive Advantage through Enhanced Cultural Engagement Capabilities”. For more information or for a complimentary copy of this paper, please contact Rick.Goossen@Avantage.com.

The "Strengthening Competitive Advantage through Enhanced Cultural Engagement Capabilities" by Dr. Rick Goossen series:

1. Cultural Capabilities
2. Building Cultural Engagement Capabilities - An Internal Assessment
3. Building Cultural Engagement Capabilities - An External Assessment
4. Building Cultural Engagement Capabilities - Balanced Scorecard
5. Strengthening Competitive Advantage through Enhanced Cultural Engagement Capabilities