Management guru Peter Drucker is often misquoted as saying, "Culture eats strategy for breakfast." His actual quote, according to the Drucker Institute, was, âCultureâno matter how definedâis singularly persistent.â The misquote is catchier, but both iterations illustrate one of Druckerâs core beliefs: that culture is vital to sustaining the values of any society or organization.
For me, this sparked a question of whether an organizationâs culture is truly able to overcome any attempts made to change it. To understand the definition of culture as it relates to businesses, my go-to book is âThe Culture of Successâ by Steven J. Anderson. He distills culture down into two definitions:
- A combination of the beliefs, attitudes and behaviors in an organization.
- How we treat each other on our shared journey.
Now letâs do the same for strategy. At the Family Business Institute, we define strategy as âa clear set of plans, actions and goals that outline how a business will compete.â
With definitions in hand, is Druckerâs statement true? Will culture always win out over strategies to counteract it?
In any organization, regardless of size or industry, there's what is referred to as the âfrozen middle.â These are the people who cling to the status quo. This resistance to change exists in every organization: at your church, in your community, at work and in your family.
If youâre witnessing this frozen middle in your organization (and we all do at some point), you can bet there's going to be resistance to proposed changes. There will be people who intentionally or unintentionally block, undermine or slow down new initiatives.
Contractors tend to focus on the rational, tangible, financial and operational aspects of their businesses. Most contractors have a culture by default that emerges within their business. Often, they don't actively work on or adjust their cultures; they just are what they are. Perhaps you can have a great culture without working on it, but putting in the effort to understand your company culture as it exists and as you would like it to exist creates an opportunity for further growth.
So, should you focus on your culture first and follow it up with a complementary strategy? Or vice versa?
It must be a combination. They must be mutually supportive. Culture and strategy have to agree with each other and reflect each other. Here are three points to help you shape (or reshape) your culture and strategy for success:
- Culture is the landscape upon which you execute your strategy. If you're going to construct something, you must first have a stable building site.
- Culture and strategy should not be fighting for singular control. They must nurture and reinforce each other.
- It is vital to engineer the type of culture you think will bring your business the most value. Even the greatest business strategy must be executed by people who exist within a well-defined culture.
Culture and strategy should not overwhelm one another, but rather exist in harmony and alignment with the vision and mission youâve set for your business.
Wayne RiversâŻis the co-founder and president of theâŻFamily Business Institute.âŻHe has authored four books aboutâŻfamilies inâŻbusinessâŻand has appeared on multiple nationally televised programs.
He serves as an expert panelist forâŻTheâŻWall Street Journal and has been quoted by Forbes,âŻFortune, BusinessWeek, Entrepreneur, CFO, Family Business, The New York Times,âŻTheâŻWashington PostâŻand many other trade, local, regional and national publications.âŻâŻâŻ
For over 15 years,âŻRivers has produced a blog andâŻwritten hundreds of articles for various magazines and trade publications.âŻHe hasâŻheldâŻworkshops and lectures for trade associations, prominent companies and well-respected universities. Along with being an Informa Markets Infrastructure & Construction contributor, he has also been honored as a Fellow of the Family Firm Institute.âŻâŻâŻ