Strategy Is the Breakfast of Champion Cultures

Peter Drucker famously said, “Culture eats strategy for breakfast.” The question I have today is, “What are you serving for breakfast?” The best company culture in the world will flounder without the hearty morning meal of strategy.

An effective company culture needs two essential components: strategy and execution. Execution is about driving operational excellence by doing things better than the competition. Strategy is a plan to create value by doing better things.

Great companies need both. Jim Collins, author of?Good to Great, emphasizes, “We need to preserve the core and stimulate progress.” Therefore, the best culture is one that values both strategy and execution. Research from McKinsey & Company supports this, indicating that companies with a clear strategy and effective execution are 2.4 times more likely to outperform their peers.

What Are the Traits of a Strategic Culture?

Here are some characteristics that define a strategic culture:

1. Focused on the Goal Stephen Covey reminded us of the importance of “beginning with the end in mind.” What is the goal? A strategic culture knows where the company is headed and works together to continually refine the plan to get there. According to a study by Harvard Business Review, 70% of employees feel more engaged when they understand their company’s strategic goals. This alignment boosts productivity and morale, driving stronger results.

2. Obsessed with the Customer Strategic cultures are fanatical about understanding what their customers value. They spend time in the field, listen actively, and walk a mile in the customer’s shoes. A PwC study found that companies with a strong customer focus are 60% more profitable than those without. When it comes time to build strategy, strategic cultures include teams of people close to the ground—not just executives in ivory towers—to provide valuable insights that drive customer-centric decisions.

3. Committed to Cadence Strategic cultures recognize the importance of stepping away from daily operations to focus on strategic thinking. While it may feel inefficient in the short term, this investment of time is crucial for long-term success. According to research from Deloitte, 92% of executives believe that organizational agility is critical to business success, but only 27% consider themselves “highly agile.” Leaders must prioritize and protect space for strategy sessions to bridge this gap and foster an adaptable, forward-thinking organization.

4. Engaged Employees The?Working Genius?model by Patrick Lencioni demonstrates that each individual is gifted with certain “geniuses” and faces specific “frustrations.” People with the Working Geniuses of Wonder, Invention, and Discernment excel in strategic conversations. Engaging these individuals in strategy development can dramatically enhance the process. Moreover, a Gallup report found that organizations with high employee engagement are 21% more profitable. Strategic planning is not a solo sport for the owner of the business. In a company with a strategic culture, employees from all levels are invited to contribute, creating a sense of ownership and inclusivity.

What’s for Breakfast at Your Company?

When your employees show up tomorrow morning, what’s for breakfast? A weak strategy is like serving a Pop Tart—quick and easy but lacking substance. A well-crafted, continually refined, and consistently communicated strategy is like the All-American breakfast with maple-smoked bacon, scratch biscuits, and homemade jam. It’s rich, filling, and sets you up for the day with energy and focus.

A culture of execution is crucial. However, it’s only half the game. Building a culture that values both execution and strategic thinking will drive sustainable growth and create long-term value. According to Bain & Company, companies that prioritize a combination of strategic thinking and strong execution outperform the competition by 6% on average annually.

So, what will your company serve for breakfast?