Organizational culture eats strategy for breakfast, lunch and dinner

Organizational culture eats strategy for breakfast, lunch and dinner

Posted by Torben Rick | June 11, 2014 | Corporate Culture
Organisational culture eats strategy

What is more important: Strategy or organizational culture

Culture eats strategy for breakfast

a phrase originated by Peter Drucker and made famous by Mark Fields, President at Ford, is an absolute reality! Any company disconnecting the two are putting their success at risk.

However, 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.

Strategy, capabilities and culture need to be aligned

There is a powerful triumvirate in corporate transformations – Strategy, capabilities and culture. All three need to be designed together, aligned and enabling of each other to create true organizational transformation.

Organisational culture eats strategy for breakfast, lunch and dinner

Organizational culture eats strategy for breakfast, lunch and dinner so don’t leave it unattended

Strategy, capabilities and culture leadership is about a series of related choices about “where we going to play”, “how are we going to win and differentiate”, “what capabilities need to be in place to execute”, “what are the cultural imperatives to enable differentiation and execution”?

Organizational culture eats strategy for breakfast, lunch and dinner so don’t leave it unattended

Given strategy is typically viewed from a 3-5 year time horizon and refreshed every few years, capabilities and culture also need to be reviewed at the same time and as one process.

This does not mean changing the values of the company, it means in the context of the strategy, business model, brand positioning … what capabilities are required and what are the critical few cultural capabilities required to enable and drive success?

How to cultivate organisational 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.

Don’t forget culture when drafting corporate strategies

Culture change is complex and most efforts fail to meet expectations. This is in part because it is often approached separately from strategy and capabilities and becomes an “HR Thing”, and/or it is approached too broadly.

Culture eats strategy for breakfast … unfortunately a message that is all too often forgotten when drafting corporate strategies.

The thing I have learned at IBM is that culture is everything – Louis V. Gerstner, Jr. former CEO IBM

Strategy or culture

Maintaining cultural coherence across a companies portfolio should be an essential factor when determining a corporate strategy.

No culture, however strong, can overcome poor choices when it comes to corporate strategy. The impact of culture on a companies success is only as good as its strategy is sound.

Don’t let culture eat strategy for breakfast. Have them feed each other.

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About The Author

Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany and Switzerland.

Blog Comments

Dear All,

culture is more important than stragety since because via a logical cultgure there is no need to utilize stragegy and this I belive so one omportant rules can play everywhere by culture to receive necessary feedbacks.

Regards,

Abbas Hosseinian

Dear All,

Strategy comes from creative, innovative and sometimes exprienced minds which is nominal in usual staffs and you need to import it thats why it is so important to much betwean strategy and cultuere

an organization can have very smart great strategies on how to drive their business but fail to get executed because the organizational culture has not been addressed . By this i mean the people that form that organization. Most companies collapse because they have a people problem which is not taken into consideration when crafting strategies. Companies must derive their strategies based on organization structure and capability, otherwise inefficiency results. So culture is an important component to address in order to have effective execution of strategies

Love the work of Drucker. I am still waiting for someone to apply Drucker’s insights to our contemporary monetary, fiscal arrangements.

Hmmmm, if we take the view that culture is an emergent property, i.e. you cant touch it or change it directly, only by changing the things that cause it to emerge can it be changed. Then it is the thinking of management, how they approach the design and management of work, how they think about work, the method they use to understand and learn – or not….that drives the culture and yes your are right about strategy and lunch etc. Best place to find out what an organsisations strategy is – is at the frontline thats where real strategy and culture can be found.
Hils.

Mindsets are critical to strategy execution but we cannot assume that there is only one mindset. My research suggests there are six that underpin commitment. Addressing all six when we design our strategic communication plan is essential. Too often what we find enticing about the strategy is what we use to gain acceptance since it follows the Golden Rule of giving to others what you are looking for. Too often there is a discrepancy.

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