STRATEGY SESSIONS #18

ORGANIZATIONAL POLITICS AND STRATEGY

by Dr. Steve Payne

 

Step 2 in the strategic planning process that I’ve been trying to explain involves gaining increased knowledge of external markets and opportunities.  A part of practically any organization or marketplace is its political nature and functioning.  Some organizations and markets are more heavily politicized than others.  It is important for effective strategists to understand the political nature of organizations and markets.

In using the term “organizational politics,” I mean how organizational members communicate or share useful information with each other.  Useful information or expertise is often a scarce resource and an important source of personal power for individuals in organizations and markets.  Heavily politicized organizations have communications networks through which certain people within these organizations gain valuable or “inside” information of which others aren’t even aware.  

In my early organizational experiences, it was interesting to observe how young people entering an organization were often fairly aware of or almost completely ignorant of the political culture of these organizations.  Some were very aware of the existence of office or organizational politics, and yet their “gamesmanship” tactics displayed misunderstanding and inappropriate responses to the political culture that actually existed.   Others claimed little or no interest in organizational politics, and they did not see within their own action or habits any political orientation.  However, their communication preferences in how and with whom they actually shared information made others form quite different impressions.

Textbooks on strategic planning and decision making in business seldom describe the importance of political networks within organizational cultures.   The strategic planning process that is described or recommended in these textbooks often ignores the presence and sometimes powerful force of political realities.

Step 2 in the recommended strategic decision-making process is an assessment of opportunities and threats that might exist within groups, organizations, and markets.   An assessment of an organization or market that does not include some appreciation of its political nature and functioning can be a very flawed assessment of its potential to meet personal values and goals.  I remember encountering a young woman about five years after her graduation who was waiting on tables at a local chain restaurant.  Knowing that she had a great undergraduate record and had obtained an impressive entry-level position at a very well-known corporation, we asked why she had left that company and her much higher salary there.  She told us that her personal values turned out to be a “poor fit” for the heavily politicized and stressful culture of the company.  She was working in her home town for a short while before reconsidering what she really was looking for in her career and next job.

Many organizations have been described as having toxic environments or cultures that can cause managers or employees to suffer long-term mental, emotional, and physical health problems.  Toxic work environments can be those that are actually abusive or merely those that demand a style or type of behavior that does not fit particular individuals.  Many employees cannot cope with a heavily politicized political culture in a work organization.  This may be due to a lack of certain interpersonal or political skills or just a preference for more open and straight-forward communication patterns.  Self-knowledge and early recognition of particular organizational characteristics can inform better strategic choices of organizational membership.