Talking amongst my peers recently, I realised that many of us have heard this phrase before and instinctively think we know what it means: that culture is more important than strategy.  Let’s delve a little bit deeper into why this might be true…

This phrase (who many think originated from American management consultant, Peter Drucker, but can’t be proven) is an interesting one, a bit like what came first – the chicken or the egg?  (The egg, of course, but we’re not here to debate that question.)  We would have to say that strategy has to come first.  Why else would the organisation exist if it didn’t have a reason to do so?  But then having the culture to support the organisation in its goals is imperative to driving its strategy.

Edgar Schein states it well “culture determines and limits strategy.”  Anyone can come up with a strategy, but it’s much harder to change or create a culture.  The reason for that is because people in all of their glorious different forms make up the culture and they, in turn, determine how things get done.  Some experts even advise that organisations should modify their strategy to align with the culture – after all, why swim against the tide?

I recall a time when I was discussing a potential new role with a past mentor of mine some years ago.  I wasn’t keen on some of the aspects of it, whereas other aspects excited me.  She advised me that “a job is shaped by the person performing it.”  That has always rung true for me.  So even though I had a piece of paper telling me what the job was and what I’d be responsible for, I performed the job totally differently from my predecessor.  Saying that, it didn’t mean we achieved different outcomes, but the impact made on the team and processes was quite different.

So getting back to the question, does culture eat strategy for breakfast?  There are many studies that would indicate that it does.  They can demonstrate a direct correlation between an organisation’s culture and employee turnover which affects productivity and, ultimately, an organisation’s bottom line.  Here are a few reasons why:

• Organisations who commit to their key values can be seen as dependable by their employees.  This gives employees a sense of stability and equanimity, even during uncertain times, resulting in maintaining good levels of productivity
• Organisations that monitor their culture allows them to gauge the engagement of their staff from the data they collect.  These organisations can then be more responsive to the changing demands of their employees and keep them engaged
• Employees who can identify closely with the organisation’s culture are more motivated to contribute to its success, often resulting in increased levels of continuous improvement and innovation
• Employees feel a higher sense of accomplishment and contribution to the organisation they care about, going the extra mile when needed

Need any more reason than this?  So, yes, culture does eat strategy for breakfast!