Culture eats strategy for breakfast, lunch, and dinner.
If you are a leader or a manager, you have probably heard this phrase before: culture eats strategy for breakfast. It means that no matter how brilliant your strategy is, it will not succeed if your organizational culture does not support it. But culture does not only affect strategy; it also affects every aspect of your business, from innovation to customer satisfaction to employee engagement. That is why culture eats strategy for lunch and dinner too.
What is organizational culture?
Organizational culture is the shared set of values, beliefs, norms and behaviors that shape how people interact and work together in an organization. It is often described as “the way we do things around here”. Culture influences how people communicate, collaborate, solve problems, make decisions, handle conflicts and cope with change. Culture also affects how people feel about their work, their colleagues and their leaders.
Why is culture important?
Culture is important because it has a direct impact on performance and results. Research has shown that organizations with strong and positive cultures tend to outperform those with weak and negative ones. For example, a study by Gallup found that companies with highly engaged employees have 21% higher profitability, 17% higher productivity and 10% higher customer ratings than those with low engagement. Another study by Deloitte found that organizations with strong cultures have 30% lower turnover, 40% lower absenteeism and 12% higher quality than those with weak cultures.
How can you shape your culture?
Shaping your culture is not easy, but it is possible. It requires a clear vision, consistent actions and constant feedback. Here are some steps you can take to shape your culture:
– Define your desired culture.
What are the core values and principles that guide your organization? What are the behaviours and attitudes that you want to see and reward? How do you want your employees to feel and act? Write down your desired culture concisely and communicate it to everyone in your organization.
– Align your strategy with your culture.
Make sure that your strategy supports and reinforces your desired culture. For example, if you want to foster a culture of innovation, your strategy should include goals and initiatives that encourage creativity, experimentation, and learning. If you want to promote a culture of collaboration, your strategy should include mechanisms and incentives that facilitate teamwork and cooperation.
– Model your culture.
As a leader or a manager, you have a powerful influence on your culture. Your actions speak louder than your words. You need to model the behaviours and attitudes that you expect from others. For example, if you want to create a culture of trust, you need to be transparent, honest, and respectful. If you want to create a culture of excellence, you need to set high standards, provide feedback and recognize achievements.
– Reinforce your culture.
You need to constantly reinforce your desired culture through formal and informal ways. Formal ways include policies, procedures, systems, and structures that align with your culture. For example, if you want to create a culture of accountability, you need to have clear roles, responsibilities, and expectations for everyone in your organization. Informal ways include rituals, symbols, stories, and recognition that celebrate and reinforce your culture. For example, if you want to create a culture of fun, you can have regular social events, games and awards that foster camaraderie and joy.
Culture eats strategy for breakfast, lunch, and dinner. But it also feeds strategy with energy, creativity, and passion. By shaping your culture intentionally and consistently, you can create a competitive advantage that will help you achieve your goals and fulfil your vision.
About the Author.
Ratnesh Jain is an entrepreneur, mentor & author.
IIM Ahmedabad alumni with 30+ years of professional and entrepreneurship experience. Past 17 years in Executive search & Growth consulting.
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