When Culture Actually Eats You for Breakfast: The Dark Side of Slow Growth

"Culture eats strategy for breakfast."

It’s a well-worn phrase in business circles, but what happens when the culture itself starts to break down? When a company isn’t growing as fast, when budgets tighten, and when once-abundant opportunities start to feel scarce, the dynamics within an organization shift—sometimes in toxic ways.

When a company is in hyper-growth mode, there’s momentum. There’s energy. And most importantly, there’s enough. Enough credit to go around, enough room for promotions, enough budget for new initiatives. People don’t feel the need to fight for territory because the pie keeps getting bigger.

But when growth slows? The pie starts to feel fixed. Suddenly, people aren’t collaborating as freely; they’re jockeying for position. The focus shifts from building to protecting. And that’s when culture starts eating people alive.

The Fixed Pie Mentality: When Survival Trumps Collaboration

When companies move from growth to cost-cutting, behaviors change—often for the worse:

• Credit hoarding – Instead of celebrating team wins, individuals start keeping score, ensuring their contributions are seen and recognized—sometimes at the expense of others.
• Fear-based leadership – Some managers, rather than championing their high-performing employees, start to see them as threats. Instead of lifting their teams up, they suppress them to maintain control.
• Blame culture – When risk aversion takes over, mistakes aren’t opportunities for learning; they’re liabilities. People become more focused on not being wrong than on driving innovation.

The Two Types of Managers in Times of Scarcity

Leadership is tested the most during times of uncertainty. And when growth slows, the difference between real leaders and title-only managers becomes painfully clear.

?? The Delegator-in-Chief:

This manager delegates everything to their team but takes full credit for the results. They never truly lift a finger or provide meaningful direction, yet somehow, they’re always front and center when recognition is handed out. Their teams? Overworked, undervalued, and often looking for a way out.

When these managers feel the pressure of a slowing business, their worst tendencies surface. Instead of solving problems, they shift responsibility downward. Instead of enabling their teams, they hoard information and decision-making power. They manage up brilliantly, but internally, they create resentment, burnout, and dysfunction.

? The True Leader:

In contrast, the best managers work alongside their teams. They ensure alignment—not just on tasks, but on vision, priorities, and mission. These leaders understand that in tough times, people need clarity, purpose, and support more than ever.

• They communicate openly about shifting goals.
• They provide air cover so their teams can focus on execution.
• They foster collaboration rather than competition within their teams.

Navigating the Shift from Growth to Cost-Cutting Without Killing Your Culture

When leadership pivots from expansion to efficiency, companies have a choice: They can let scarcity fuel toxic behaviors, or they can double down on reinforcing the right kind of culture.

1. Reframe success – If the metrics of growth change, leadership must redefine what winning looks like and communicate it clearly.
2. Recognize and reward true leadership – Leadership isn’t just about outcomes; it’s about how those outcomes are achieved. A culture that rewards credit-hoarding and fear-based management will always suffer long-term consequences.
3. Protect high performers – The worst mistake a company can make in tough times is letting insecurity push out the very people who could help turn things around.
4. Foster collaboration over competition – A zero-sum mentality within teams is a slow poison. Leadership should reinforce a culture where collective success matters more than individual positioning.

Every company says culture matters when things are going well. But when the tide turns, that’s when it really gets tested.

I’m curious—have you seen this dynamic play out? How have you navigated leadership in times of uncertainty?