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Lesson 25 A1iA1jA2aB2dB2f

Changes in structure, culture and strategy

You'll learn how organisational structure, culture, and strategy interconnect and why changing one often requires changing the others. This lesson explores how strategic shifts—like moving from cost leadership to differentiation—demand corresponding changes in structure, performance measures, and workplace culture.

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In this lesson

  1. 0:00 Changes in structure, culture and strategy
  2. 0:07 Strategic change and organisational impact
  3. 0:31 Why performance measures drive culture change
  4. 1:00 How structure signals real organisational change
  5. 2:09 Matching structure to strategy and size
  6. 2:58 Aligning performance measures with structure
  7. 3:17 Culture's influence on strategy execution
  8. 4:16 Management styles and cultural variation
  9. 4:58 Adapting performance management to culture

About this lesson

You'll understand why culture is often the hardest element to change and why the phrase "culture eats strategy for breakfast" matters in practice. This is essential knowledge for the Strategic Business Leader (SBL) and Strategic Management (E3) papers, where you'll need to recommend and justify integrated organisational changes. The video covers three core elements. Strategic change involves reshaping mission, objectives, or competitive positioning—which then cascades into how you control and measure performance. Structural change means reorganising roles and reporting lines, often signalling that transformation is real rather than superficial. Cultural change—defining what's acceptable and how work gets done—is typically the most challenging, as people naturally resist new ways of working even when strategy demands it. You'll learn that there's no perfect structure or culture; what matters is alignment with your organisation's strategy, size, and objectives. Different strategies require different structures: a cost leader might use functional organisation for efficiency, while a differentiated business might adopt matrix structures to encourage innovation. Equally, performance measures must reflect your chosen culture—what gets measured gets done. The key takeaway: attempting strategic change without addressing structure and culture will likely fail, so you need to think systemically about how these three elements reinforce each other.

Duration: 6m

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