The Strategy Versus Culture Myth

Last night I recalled a dream, a memory that occasionally visits me, about a lizard I once kept in a terrarium. 

The terrarium housed a lizard upstairs and downstairs safely lived a colony of crickets. The terrarium had a basement inside of it accessible to only my cricket colony. The green lizard, my perfect roommate who was always a good listener, never disagreed with me, nor made demands for attention and cuddling like furry mammals do.

But the crickets were a different story. They were super sensitive to their work environment and when in a romantic mood, usually at sunset, they clicked loudly. 

Out of curiosity, I tried an experiment and moved a small pebble on the floor of the terrarium only a few centimeters. I watched the entire community panicking over the displaced pebble…eager to inform those in the basement who arose to see what all the commotion upstairs was about. The point is that change in our environment affects us.

That’s how I feel about popular, trending subjects. They cause great excitement and dialogue but they usually just expand commentary on the subject and may not address its place within the context of longer trend waves.

For example, consider the current ‘strategy versus culture’ debate.  Some humans, like the crickets, are gathering around this one pebble: the ‘strategy versus culture’ discussion.  But is deciding which one is more important than the other really the main issue?

When looking at strategy, executives must have critical thinking skills to be able to crystallize the mission into a shared sense of purpose, align people and processes, develop execution plans, determine resource allocations, and decide on metrics – the what and how, to be an iceberg spotter, and to clarify rewards and penalties. Strategy is the success map that helps to navigate towards profitable outcomes for all.

Culture requires leaders to focus on empathy, communications, emotional intelligence, personal style differences, preferences and biases, peacekeeping, and harmonious collective flow.  Culture is affected by creating significant emotional experiences. Positive shifts can happen relatively quickly, pending the core values modeled at the top and a cohesive team attitude about building an ‘intentional community’ based on shared values and a unifying purpose. 

The culture-minded leader must adopt new methods and practices, i.e., more refined tactics on an ongoing basis that are accepted and practiced by the entire team.  

The reason some individuals and organizations champion culture over strategy is that the pandemic has deeply affected workers’ feelings about work which goes beyond a living wage compensation.  Some employers even have gone as far as providing free Friday lunches in hopes of providing more of what employees want.  What employees really want is flexibility, compensation, and a sense of purpose in what they do and make, that they are part of a larger cause.

Strategy and culture are natural cause and effect factors for each other. Strategy provides a vision that others can feel they own as well as the path towards work fulfillment and increased wealth for all. Team bonuses have done that in the past but now workers want something much more inclusive, and to be known as more than just ‘human capital’ (which sounds dangerously close to ‘human cattle’). Culture provides a sense of belonging and purpose.

Lizards, Crickets, and Pebbles

Now back to my lizard, crickets, and the controversial pebble relocation herpetological disruption.

Why were the crickets so concerned about the pebble disruption news? They were concerned about the pebble because they were told by others that it was important (obviously), hence the clustering. Likewise, we are told the strategy versus culture point is valid, and it is…but underlying everything that could be said about both strategy and culture is the fact that both are created by imperfect humans with imperfect communications skills. However, their values count.

My Point of View

Strategy and Culture are kissing cousins, allies who must mesh together if organizations are to remain intact. The conversation about strategy and culture must consider the current economic trends as well as the vision for business growth plans.

Consider for example the conversation circulating around the labor market and its effect on business. 

What is the value of investing in people? Consider the following bulleted items and note which ones you think achieve growth and profit goals most effectively.

·        Loyalty

·        Investment in people

·        Consumer spending

·        Fewer and less intense staff conflicts

·        Competent customer service

·        Public Image

·        Previous workers’ online evaluations

·        Change Management – Are employees policy compliant?

·        Effective Employee Pre-Screening, Onboarding, and Training

Business leaders have different opinions on what is most effective based on their background, knowledge, and experience. Other factors that play into their perspective are their people skills and ability to spot and manage conflict before it erupts into something that affects the delivery of products and services. Fun fact: On average, managers spend 13 hours per month dealing with interpersonal conflicts.

For example, take Change Management. Some leaders want 100% compliant workers who always follow company policy. Others prefer employees who are willing to take initiative in addressing problems even if it means doing something that may appear to not be in alignment with current policies. The latter group identifies and empowers people who willingly accept and adapt to new policies. They encourage their people to take initiative and to alert leadership to problems. 

Those who prefer 100% compliance usually do so because it seems on the surface to make managing a team easier.  If they are more focused on compliance and metrics they may be relying on numbers to justify their role and compensation.

Value-Driven Organizations

Clearly, work culture is being redefined. Labor unions are forming with considerable pushback and, in some cases, punishment from megalithic employers.

What is common to both strategic planning and culture development is the importance of shared values held by all players. A dialogue between employers and workers must start with values to fully engage all parties.

Given the resign culture that exists we must begin a dialogue on adaptive strategies, and developing and improving cultures that support and contribute to the execution of those strategies. One of the gifts of the pandemic is helping organizations to see how central culture is to the survival, success, and longevity of a company. 

Consider how, since the early 80s, 3M allowed their engineers to have spontaneous brainstorming ‘imagineering’ sessions. Henry Ford paid his workers well enough so that they could afford to buy his vehicles.  Do you want your workers to afford your products and services? Do you want them talking enthusiastically about what you offer even if it’s something they might not purchase for themselves? 

What has been your experience?

I welcome your opinions and viewpoints on the strategy versus culture topic.

By Frank DeDominicis

Come to my 6/2 webinar on The Great Resignation - How To Keep Your People