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But when circumstances change, the business model must shift as well. “A lot of mature companies have business models that have been optimized for a certain set of circumstances,” Romanski says in the EIU report. The importance of culture is magnified during a new strategic implementation, says Hilton Romanski, CSO of multinational technology company Cisco, because companies and their employees are moving from a comfort zone to an uncomfortable, uncertain future. Another 28 percent said their organization did not believe there is a pressing need for significant strategic change. At least 30 percent said their employees did not find it worth “putting up with much hassle” to help implement a new strategy. Many leaders in the survey also said that their employees did not have the buy-in necessary to invest in the changes that a new strategy demanded. Another 28 percent blamed parts of the organization for a lack of understanding of what new strategies would demand. That was closely followed by recognition that many corporate cultures had not developed the agility and flexibility to transform: 29 percent said the culture could not absorb all the changes coming from strategy implementation. Thirty-three percent blamed a failure at the top: Corporate leaders did not understand the challenges facing employees and the impact of new strategic shifts.
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10 Guiding Principles for Closing the Gap Between Strategy Design and DeliveryĬompanies in the survey cited several different cultural barriers that have impacted their strategic implementations.
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