Characteristics of a Dynamic Environment in Strategic Management

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Dynamic strategic environments are made of many elements which are supported by management.
Dynamic strategic environments are made of many elements which are supported by management. (Image: Jupiterimages/Comstock/Getty Images)

Businesses rely on leaders to make strategic decisions about the direction of the company, however leaders are also reliant on the skills of subordinates. A dynamic environment functions with leaders and employees working harmoniously toward strategic goals. The culture of an organization should match with strategic objectives and the character of CEOs, executives and other leaders. Dynamic environments also incorporate ethical standards into the strategy and culture, promoting a framework of fairness and lawfulness.

Organizational Leadership

Dynamic organizational leaders must comprehensively guide the organization through constant change. CEOs and executives support the organization by staffing departments with capable leaders who are able to implement strategic plans and stay true to the organizational culture. Strategic business leaders use skills such as marketing techniques and salesmanship to attract investors and increase profits, both of which keep the business in continual growth. Many corporations eventually turn to globalization as a growth strategy, so business leaders must also be prepared to conduct business on a multinational level.

Clear Strategic Intent

Business leaders disseminate information about the strategic direction of the company to all stakeholders, including management, employees, shareholders and (in some cases) customers. The clarification of strategic intent allows every stakeholder to act in line with the current direction of the organization. Business leaders clarify intent through developing and articulating a dynamic vision. This vision should include strategic objectives and performance standards set to meet those goals.

Organizational Culture

Organizational culture uses the influence of industry experts to give the business a distinct personality. A dynamic organizational culture incorporates elements of leadership, vision, performance and strategy. A culture can build enthusiasm for the company by highlighting the strengths and core competencies of the business. This builds internal and external confidence in the company and keeps employee activity and company policy in line with the strategic vision.

Ethical Standards

Dynamic organizations function under a comprehensive set of values, which helps employees understand what’s expected of them and keeps the organization functioning within the law. Much of the time, company leaders incorporate ethics as part of the company vision and organizational culture. New employees may be briefed on ethical codes during orientation or in company policy handbooks. Additionally, many organizations have corporate social responsibility (CSR) plans in place to connect ethical policy with public relations. CSR plans highlight visible legal compliance, charitable donations and community event sponsorship.

Linking Strategy and Culture

The dynamics linking the corporate strategy to the organizational culture are reliant on the skills of the top executives and delegation to other leaders within the business. The key is consistent application of strategic ideals as part of the organizational culture. Changes in strategy should be reflected in shifts in vision and organizational personality.

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