Lately, culture is the new black. Firms are exhorted to 'embed an effective culture' and to manage culture actively, even instrumentally. But that is far easier said than done. Firms have multiple sub-cultures, many of which can influence behaviour and decision-making.
How a firm decides to set strategies, allocate resources, acquire capabilities, to monitor performance and to act will determine what it does and how it does it. Who decides what, when, how and even where, matters. Decision rights are not only practical settings of power and influence within the firm, they have significant symbolic impact.
When firms' sources of advantage are knowledge-based, how the firm motivates its people matters. How the firm recognises, encourages and rewards performance is critical to executing strategy sustainably
Far more than just a document for defining direction, strategy should be an ongoing process of gathering information, reflection, setting direction and action. Critically, strategy should provide a narrative motivates and influences the choices and actions of the firm's people.