Does culture really eat strategy for breakfast?

We've all heard Peter Drucker's "Culture eats strategy for breakfast". But what does that really mean? First of all what is culture? What is strategy?

Strategy:

‍Strategy is simply "choice". Roger Martin, a strategy guru, defines strategy as "...a set of interrelated and powerful choices that  positions an organization to win".

‍Culture:

‍Culture can be simply defined as cultivated behaviour. Cultivated through rewards, punishments & indifference. Over time it gets interpreted and becomes the culture of the place it is applied in.

The Harmony:

Such "rewards, punishments and indifference" (Culture) and the "choices" we make (Strategy) influence each other and they need a certain level of harmony. Now going back to Drucker's quote, "Culture eats strategy for breakfast". what does that mean? It certainly does not mean that strategy is unimportant. Instead, it means that even the most brilliant strategy can falter if not supported by a robust and empowering culture.

For instance, if a company’s strategy focuses on innovation but its culture severely punishes failure, employees will be reluctant to take risks, stifling creativity and hindering progress. Similarly, if a strategy emphasizes customer-centricity but the culture doesn’t empower frontline employees to make decisions, customer satisfaction may suffer, and strategic goals may remain out of reach.

When culture aligns with strategy, it enhances the execution of the strategy by ensuring everyone  in the organization does what they are good at and by reinforcing good performance through commensurate rewards. This alignment transforms strategic plans from mere documents and powerpoint presentations into lived experiences that drive daily actions and decisions.

Culture & Strategy must be complementary:

Cultivating a strong, positive culture is as important as building a good strategy. See culture and strategy, not as competing forces, but as complementary elements that when harmonized, drive sustainable success. In essence, Drucker’s assertion reminds us that while strategy sets the direction, culture is the fuel that propels the organization forward.

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