“Culture eats strategy for breakfast” is a famous quote allegedly attributed to the legendary Management
Consultant and writer Peter Drucker. In his statement, Drucker meant that no matter how well thought-out the
strategy is, if you do not have or consider the culture in your organization to support that strategy it will not
come to fruition.
An organization culture is about the habits people have formed, how they make decisions, how they respond to
challenges, pressure and discomfort, and what they believe is good or bad for success based on what’s been
incentivized, rewarded, reinforced, and possibly even punished in their workplace. Culture is the overall result
when the majority of an organization workforce espouse the same set of beliefs even if they are not the traits
valued by the company. However, in many organizations, what is often but wrongly defined as culture is what
we see on the surface, office layouts, visible artifacts and mission statements etched on papers, what people
wear etc.
While many studies show there is a direct correlation between a healthy, productive culture and a company’s
bottom line, the majority of companies spend little time thinking, let alone doing anything about, this topic –
even when they’re spending lots of time thinking about their business strategy.
Because effective strategy must be carried through to tactical execution by all employees, a strategy that is
incongruent with culture is destined for failure. This is not to say that it is impossible to align culture to strategy,
but it is extraordinarily difficult to do so. It is far easier to execute a strategy that conforms to the existing
culture. However, strategy, in order to be effective, must spring from a real market opportunity. If there is none,
then as difficult as it is, a strategic culture must be built.
“Strategic culture” is not merely a catchy phrase to drop in a business meeting. It’s actually a very
powerful concept that can help leaders think through what the company values and what that means for the
strategy. To find what would be a strategic culture for the company, leaders have to identify the values of
leaders, employees, and customers. A strategic corporate culture is where these overlap.
Essentially culture is going to do two things for you; first, it’s going to dictate the kind of strategies you can
execute on. If you don’t have the right culture, it doesn’t matter if you have the right strategy— you won’t be
able to execute on it. Second, it also should align with what your marketplace looks like. If you have the right
culture, your customers will be loyal and will keep going to you. If you have the wrong culture, you’re going to
lose them, and then they’re going to have to compete on price—and no leader wants their organization to
compete on price.
The reason why culture easily chews up and spit outs strategy is that it is easier to reset strategy than it is to
reset culture. Corporate culture is a hard thing to get right. It’s a moving target that means something different
to everyone. It grows and evolves over time and is the result of action and reaction. It is the lingering effect of
every interaction.
An organization culture should be assessed and refined to ensure a natural congruence with the strategy. If
culture and strategy are aligned, the strategy can be delivered smoothly. If they are not, then either the
strategy should be reassessed or the culture should be actively and painstakingly brought in line with the
strategy. Failure to do this will reduce the strategy to a baseless assertion. That is the eating for breakfast part.
Without the cultural foundation for the strategy to build upon, the strategy will not get the support it needs.
Don’t let culture eat strategy for breakfast. Have them feed each other.