Does Culture Eat Strategy for Breakfast?

"Culture Eats Strategy For Breakfast"

This famous quote by management guru Peter Drucker emphasizes the importance of organizational culture in achieving success. It highlights the idea that no matter how brilliant your strategy is, it will ultimately be undermined by a company culture that is not aligned with your goals. In other words,

if your employees don't believe in what you're trying to accomplish, no amount of clever planning or innovative thinking will make a difference.

Defining Organizational Culture

In the context of an organization, culture is often reflected in the way employees interact with each other and with customers, the level of transparency and trust within the organization, and the overall attitude towards work and the company's mission

"Culture is a way of working together toward common goals that have been followed so frequently and so successfully that people don’t even think about trying to do things another way. If a culture has formed, people will autonomously do what they need to do to be successful." - says Clayton M. Christensen, in the seminal book How will you measure your Life? ?

Mission + Vision + Values ** Company Culture!

While a company's mission and values are important, they are not the same as culture. A company's mission and values may be written down and communicated to employees, but culture is more intangible and can be difficult to measure.

Culture is the underlying "personality" of the organization, whereas the mission and values are more like the organization's "mission statement."

Culture and the Arc of Success

A strong organizational culture is crucial for overall success. Culture can either support or hinder a company's strategy. When culture is aligned with the company's goals, it can create a sense of purpose and motivation among employees, leading to increased productivity, innovation, and customer satisfaction. On the other hand,

A culture that is not aligned with the company's strategy can lead to disengagement, lack of accountability, and ultimately, failure.

Successful Companies with Aligned Culture and Strategy

There are many examples of companies that have successfully aligned their culture with their strategy.

The Tata Group, a multinational conglomerate based in India, has maintained its status as one of the country's most successful companies thanks to its strong emphasis on culture.

Tata has prioritized ethical leadership, social responsibility, and employee empowerment, which has paid off by consistently ranking among India's top employers and most admired companies.

Nykaa, a relatively newer player in the Indian e-commerce industry, has built a culture centered around female empowerment and inclusivity. This commitment to a positive workplace culture has helped Nykaa attract and retain top talent and has led to the company's rapid growth and success.

Globally, companies like Amazon, Southwest Airlines, Apple, Zappos - to name a few have time and again demonstrated the power of culture in driving success.

Jeff Bezos, the founder of Amazon, believes that if you get the culture right, everything else will fall into place.

Amazon's culture is based on customer obsession, innovation, and a bias for action, which has driven their success and enabled them to disrupt the retail industry.

Southwest Airlines has maintained a unique culture that values its employees above all else, resulting in a highly engaged workforce, low employee turnover rates, and exceptional customer service.

Similarly, Zappos, the online shoe and clothing retailer, is another prime example of how culture can drive success. The company has a unique culture that prioritizes customer satisfaction above all else, and this focus has helped it stand out in an otherwise crowded marketplace.

In fact, Zappos has been so successful that it was acquired by Amazon for $1.2 billion in 2009.

When Strategy is Out of Sync with Culture!

One common mistake that companies make when trying to implement a new strategy is failing to consider the existing culture of the organization. it gets often overlooked that culture is deeply ingrained and cannot be changed overnight. Another mistake is not involving employees in the strategy development process.

Employees who feel that their input is valued are more likely to be committed to the company's goals.

Companies like Uber have struggled due to poor cultures, despite having solid strategies in place. Uber's aggressive, cut-throat culture ultimately led to numerous controversies, including allegations of harassment and discrimination, hurting the company's brand and threatening its long-term success.

Few of India's largest conglomerates, Family owned businesses and PSUs are also classical examples of cultural norms around nepotism and favoritism tanking Strategic imperatives.

In many generational Indian companies, there is a tendency to prioritize relationships and personal connections over merit and performance, which can lead to a lack of accountability and transparency. This can be particularly challenging for companies which operate in highly regulated and competitive industries, save few names.

Measuring the Effectiveness of Culture in Supporting Strategy

Policy makers can measure the effectiveness of their culture in supporting their strategy by tracking metrics such as employee engagement, customer satisfaction, and financial performance. These metrics can provide valuable insights into whether the culture is aligned with the company's goals.

In summary, As leaders, we all should ensure that our culture is aligned with our strategies, because culture does eat strategy for breakfast!

Do you have more examples of companies that have successfully aligned their culture with their strategy, and what made them successful?

Any examples of company which have failed because of a misalignment of culture and strategy?

Please comment below!

-- Prince Ramanan.

#notetoself #weekendmusings #companyculturematters #CultureEatsStrategy #CultureStrategyAlignment #CultureMetrics #OrganizationalCulture #CompanyCulture #CultureEatsStrategyForBreakfast #StrategyVsCulture #MissionAndValues #SuccessFactors #Leadership #EmployeeEmpowerment #Inclusivity #DiversityAndInclusion #WorkplaceCulture #ChangeManagement #MetricsAndMeasurement #CorporateValues #CompanyBrand