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We apply some of the key characteristics of the human brain to make sense and navigate our way through our challenging environment.
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In my previous article "Accelerate Performance with Strategic Alignment - Define the logic of your strategy", we demonstrated the alignment between the market and business strategy by matching the logic of the market with the logic of the strategy.                                                                                                            The                                  Explore                                   logic emphasises a market where customers seek new solutions for emerging requirements. The strategy responds by exploring new opportunities and driving for growth.                                                                                                            The                                  Exploit                                   logic occurs in a more stable market where customers seek lower costs and reliability of supply. The appropriate strategy focuses on operational efficiency and building close customer relationships.                                                                                                            Culture is key to shaping the capabilities of the business to successfully                                  implement strategy                                  . It drives the way that people behave, decisions are made and actions are taken. It determines, therefore, the strategy that is actually                                  realised                                   in the market, as opposed to that which is merely intended.                                                                                                            We make a key distinction between the                                  desired                                   culture and the                                  appropriate                                   culture. The                                  desired                                  culture is what people may choose because it sounds attractive and in vogue. However, the                                  appropriate                                   culture is the culture that is required to successfully implement the chosen strategy. Often, these can be different.                                                                                                            For example, people might seek to develop a culture that is ‘innovative’, ‘flexible’ and ‘empowering’, but this may not be the appropriate culture needed to successfully implement the business strategy.                                                                                                            DEVELOP THE APPROPRIATE CULTURE FOR YOUR STRATEGY                                                      Developing the appropriate culture requires a deliberate emphasis on certain cultural attributes and making trade-offs on others. As we will see, the attributes that are traded off are usually the opposites of those that are emphasised.
 

In Part 1 "How to Accelerate Performance with Strategic Alignment - Understand the Logic of the Market"  we outlined different market conditions and defined them in terms of two overarching logics —                                  Exploring                                   and                                  Exploiting                                  .                                                                                                            To briefly recap, an Exploring logic is one where customers are seeking new solutions for emerging needs. It’s all about change and action.                                                                                                            An Exploiting logic occurs in a more stable market in which the issues are about lowering costs and working collaboratively with customers.                                                                                                            It’s a market that focuses on stability and cohesion.                                                                                                            FORCES THAT SHAPE YOUR STRATEGY                                                                                                            Clearly, it is one of these two logics — or a combination of both — that will shape your strategy as you operate in these markets.                                                                                                            See figure 1 below that describes how these logics will form your business strategy:
 


