Why Organizational Culture Punks Business Strategy Every Time

Photo by Husna Miskandar on Unsplash

We often focus on developing the perfect strategy to achieve our goals in business. We invest time, energy, and resources into developing complex plans and procedures, hoping they will help us succeed. But as Edgar H. Schein, a prominent organizational psychologist and management theorist, once said: “Culture eats strategy for breakfast.” (Many attribute this quote to Peter Drucker)

What does this mean, exactly? Simply put, it means that an organization’s culture is often more powerful than any strategy that may be put in place. No matter how well-crafted a strategy may be, it is unlikely to be successful if it’s not aligned with the organization’s culture. In other words, if an organization’s culture doesn’t support the strategy, it’s unlikely to be implemented effectively.

Consider the example of a company that prioritizes innovation and creativity but has a hierarchical, rigid culture in which team members are discouraged from taking risks or trying new things. No matter how well-crafted the company’s strategy for innovation may be, it is unlikely to be successful in this environment. The company may have the best plans and procedures in place, but if the culture doesn’t support experimentation and risk-taking, the strategy is unlikely to be implemented effectively.

On the other hand, consider a company with a transparent, open communication and collaboration culture. Even if the company’s strategy is not innovative or groundbreaking, it is likely to succeed if it’s aligned with the organization’s culture. The culture will support the strategy, making it easier to implement and ensuring everyone works together toward a common goal.

So what does this mean for business leaders? Simply put, it means that they must pay attention to the culture of their organizations. They must strive to create a culture that supports their strategies rather than simply relying on the strategy to achieve success. This may mean changing the organization’s culture by encouraging open communication, fostering collaboration, or empowering employees to take risks and try new things.