Organizational Identity – Strategy Alignment in Company X
Karppinen, Saija (2022)
Karppinen, Saija
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120726901
https://urn.fi/URN:NBN:fi:amk-2022120726901
Tiivistelmä
Organizational identity answers to the question: “Who are we as an organization?” It is formed by the features that the organizational members perceive to be central, distinctive and enduring to their organization. While organizational identity is about who the organization is, strategy is about what the organization does to reach their goals and how they plan to do it. A strategy that is aligned with what is central, distinctive and enduring about the organization as perceived by organizational members, the ones putting the strategy in practice, is far more feasible than a plan that the organization itself is fighting against.
This thesis is a commissioned case study of organizational identity – strategy alignment in
“Company X”. The case organization has not only been highly influenced by the Covid-19 pandemic but has simultaneously undergone major organizational changes in size and on executive level. Therefore, it was appropriate to study what the organizational identity and business strategy are currently like and whether these two are aligned with each other.
In this research context, the theoretical framework of organizational identity expanded on: dynamic interrelations between organizational identity, culture and image, organizational identification and its influence on strategy execution and organizational identity change. The other main topic of the theoretical framework, strategic management, is focused on the importance of strategic alignment in organizations and practical perspective of organizational identity – strategy alignment.
Empirical part of the research was two-parted. Organizational identity was studied with an online survey that was sent to a target population in the case organization. Then, a strategy map (provided by the case organization) was analyzed and based on this initial analysis, a group interview with two appropriate participants was conducted to attain a more in-depth understanding of the current business strategy. Finally, the results of these two parts were compared with each other in reference to the theoretical framework to assess how well the current organizational identity is aligned with the current business strategy.
According to the results, the current organizational identity consists of positive features that have survived the crisis and changes in the organization, but also negative ones as latest additions. These negative identity perceptions had been considered in the strategy formulation. However, the business strategy was so focused on how to overcome the current challenges in the organization, that the other features of the organizational identity were not apparent in the current business strategy. Based on this research, it was proposed that the case organization should: evaluate which organizational identity traits are feasible to encourage or discourage, assess how they could exploit the strong and positive organizational identity features, ensure clear and mutual communications especially with first-line managers regarding the strategic direction and enhance synergy within the organization as a whole.
This thesis is a commissioned case study of organizational identity – strategy alignment in
“Company X”. The case organization has not only been highly influenced by the Covid-19 pandemic but has simultaneously undergone major organizational changes in size and on executive level. Therefore, it was appropriate to study what the organizational identity and business strategy are currently like and whether these two are aligned with each other.
In this research context, the theoretical framework of organizational identity expanded on: dynamic interrelations between organizational identity, culture and image, organizational identification and its influence on strategy execution and organizational identity change. The other main topic of the theoretical framework, strategic management, is focused on the importance of strategic alignment in organizations and practical perspective of organizational identity – strategy alignment.
Empirical part of the research was two-parted. Organizational identity was studied with an online survey that was sent to a target population in the case organization. Then, a strategy map (provided by the case organization) was analyzed and based on this initial analysis, a group interview with two appropriate participants was conducted to attain a more in-depth understanding of the current business strategy. Finally, the results of these two parts were compared with each other in reference to the theoretical framework to assess how well the current organizational identity is aligned with the current business strategy.
According to the results, the current organizational identity consists of positive features that have survived the crisis and changes in the organization, but also negative ones as latest additions. These negative identity perceptions had been considered in the strategy formulation. However, the business strategy was so focused on how to overcome the current challenges in the organization, that the other features of the organizational identity were not apparent in the current business strategy. Based on this research, it was proposed that the case organization should: evaluate which organizational identity traits are feasible to encourage or discourage, assess how they could exploit the strong and positive organizational identity features, ensure clear and mutual communications especially with first-line managers regarding the strategic direction and enhance synergy within the organization as a whole.