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Part 1: Aligning Strategic Plans and Medical Devices Corporate Culture

Inspiry21 Agustus 2023
Part 1: Aligning Strategic Plans and Medical Devices Corporate Culture

In his book Fred.R.David (13th Edition), "Strategic Planning" is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its goals, consisting of three stages:
1. Formulation of the strategy (Strategic Formulation)
2. Strategy Implementation (Strategic Execution)
3. Strategic Evaluation

These 3 stages of implementation will intersect with the dependent variable "Corporate Culture". Corporate Culture is a set of core values and shared practices that define a company, both internally for employees and externally for stakeholders, and as part of the company's public image.

Ensuring the two elements "Strategic Planning and Corporate Culture" are very important as key success factors because it requires personal discipline, commitment, and sacrifice.

In the landscape of VUCA - Volatility, Uncertainty, Complexity, and in the Indonesian Medical Devices Industry, adjusting between “Strategic Planning and Corporate culture” is a must for C-Levels.

Challenges in the Medical Devices Industries - Corporate Culture in Medical Devices Companies is generally embedded in "Habits" and is often resistant to change, while Strategic plans must be flexible and responsive. The Medical Devices Industry in the scope of manufacturing and distributors is still very dependent on imported components. The existence of government regulations regarding the Program for Increasing the Use of Domestic Products (P3DN) in the Government market segment has changed the game (games changers).
1. Open opportunities for business actors to open manufacturing businesses and distribute Domestically Production Medical Devices.
2. Compliance with regulations
3. Providing "compliance" education to Work Units using the Budget
This is where C-Levels must face the dilemma of how to implement a flexible strategy in a cultural context that tends to be resistant to change.


The Disconnect - Only 27% of employees really believe in the values of their company (Gallup, 2017), this shows that there is a significant gap between the ideals of the Company, Organizations Using Budgets (APBN. APBD), and the reality experienced by employees, Work Units Budget User. This gap can undermine strategic initiatives and undermine trust within the organization.
The strategic implications require C-Levels Engagement as a priority: C-Levels must prioritize strategic and cultural alignment FROM THE EARLY. This requires an in-depth understanding of the current corporate culture, clear strategic goals, and a roadmap to ensure the two are in sync.

C-Level priority scale in the Healthcare Industry:
1. Increase the intelligence of reading and interpreting the cultural environment. They need to understand how work is done and how decisions are made in an Operating Procedure format and use this knowledge to shape and refine strategy.
2. Engagement - Regular and transparent communication between C-Levels and their managerial subordinates down to employees is critical, soliciting and acting on feedback to ensure strategy reacts at all levels of the organization and is seen as enhancing not damaging, corporate culture.
3. Use the questionnaire, ad hoc team-FGD, and other tools to understand the prevailing culture.
4. Define the desired culture and cultural attributes that will support the strategy (enable) and which cultures do not support the strategy (disable);
5. Develop a Culture Change Plan- Create actionable steps to transition from the current culture to the desired culture, with measurable landmarks.
6. Integrate Culture in Strategy Execution: Ensure that each strategic initiative includes cultural fit as a critical factor for success.
7. Monitor and adapt Regularly review progress and be prepared to refine cultural strategies and initiatives as circumstances change.

C-Levels who can work with this interdependence and synchronize strategy to the culture, in the context of the Company's mission, vision, and values; is a reflection of leadership that is poised for success.

Contributor: Hartanto - CEO of PT Inspiry Indonesia Konsulta

Salam Inspirasi,
Compiled from various sources on LinkedIn and Fred R. David's 13th printing

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