The Unmistakable Importance of Bridging Organisational Culture with Company Strategy

In the fast-paced world of business, a brilliant strategy is often hailed as the key to all success. Companies invest heavily in crafting visionary plans, meticulously outlining market positioning, competitive advantages are looked at from all sides, and growth trajectories are calculated for every metric. Yet, as history and countless real-world examples attest, a rockstar strategy, no matter how meticulously designed, is simply not enough. The enduring truth, famously articulated by Peter Drucker, is that “Culture eats strategy for breakfast”. This profound statement underscores a fundamental reality: for any strategy to truly flourish, it requires a robust and aligned organisational culture to be its driving force and scaffolding.

The critical role of organisational culture (the 20% that drives 80% of success)

Organisational culture is the invisible yet potent force that dictates how things get done within a company. It encompasses the shared values, beliefs, and most importantly, the behaviours that shape every interaction, decision, and response to risk and change. Often described as the “personality” of the organisation, culture is not a mere by-product; it actively moulds employee behaviour, fosters collaboration, determines the quality of results, and ultimately influences performance. A strong, well-aligned culture can accelerate strategic initiatives, strengthens engagement, innovation, and operational efficiency. When employees feel connected to the mission and values, they are more likely to commit to strategic goals, take the initiative, and contribute to the company in a meaningful way. Conversely, a misaligned or toxic culture can breed all sorts of disengagement, inefficiency, and resistance, even in the face of a compelling and rock-solid strategy.

From an 80/20 perspective, as Richard Koch would argue, a small subset of cultural elements – perhaps just 20% of an organisation’s behaviours, values, and informal rules – drive 80% of its performance outcomes and organisational results. While many organisational leaders meticulously focus on comprehensive strategy and detailed frameworks, and all the documents thereof, Koch would emphasise that the true leverage lies in identifying, and then amplifying, these “critical few” cultural factors. Therefore, understanding and actively managing organisational culture is not a luxury in the sense of “we will get to that later”, but a necessity for sustainable success; after all, it is the people who need to drive the strategy to success.

Why culture often undermines strategy (the 80% that can sabotage strategic efforts)

Despite the growing recognition of culture’s importance, many organisations struggle to align it with their strategic objectives. One primary reason is that culture’s powerful strings are often invisible, informal, and deeply ingrained by nature. As the Alexander Partnership notes, “Culture happens when you are not looking”. Therefore, without intentional shaping, it can drift in directions that directly contradict strategic goals.

When strategy and culture are misaligned, there are several critical issues that emerge:

• Friction in execution: Employees may unknowingly work against strategic initiatives if those efforts conflict with existing cultural norms. For instance, a company striving for innovation may find its employees hesitant to take risks if the culture penalises failure.
• Operational inefficiencies: Misalignment can lead to duplicated efforts, inconsistent practices, and stalled progress. Resources are wasted not due to poor planning but because of resistance or misunderstanding rooted in cultural disconnect. Therefore, the strategy must be communicated to all stakeholders, and that includes employees, so that there is awareness and understanding of what the goals are.
• Employee disengagement: A toxic or misaligned culture erodes morale and motivation. Employees who feel disconnected from the organisation’s values or mission are more likely to leave, leading to high turnover and reduced productivity. People need to understand that their work directly feeds into the big picture of the company and see how it links to the strategy.

Aligning culture with strategy for sustainable success (the 20% solution)

To overcome the challenges posed by cultural misalignment, organisations must take deliberate, science-backed steps to diagnose, shape, and then sustain a culture that supports their strategic goals. The approach to take here then, is to radically focus on aligning culture with strategy:

• Diagnose the current culture: The first step is understanding the organisation’s current cultural landscape. Tools like the Competing Values Framework (CVF) offer a structured approach to mapping culture, categorising it along two dimensions: Focus (Internal vs. External) and Structure (Flexible vs. Stable). This forms four archetypes: 
  • Clan (collaborative), 
  • Adhocracy (innovative), 
  • Market (competitive), and 
  • Hierarchy (controlled). 

Most successful organisations leverage elements of all four, but the key is ensuring the dominant culture aligns with strategic priorities.

• Align culture with strategy: Once the current culture is identified and understood, senior leaders must align it with strategic objectives. This involves reinforcing behaviours that support the strategy through leadership modelling, incentives, and recognition, communicating the “why” behind strategic initiatives to foster shared understanding and purpose. Also, another important thing to keep in mind, is to create feedback loops to monitor the progress and adapt where needed.
• Leverage neuroscience to drive change: Given the brain’s natural resistance to change, senior leaders must apply insights from neuroscience to make cultural transformation more effective. This includes reducing “threats” by creating psychological safety through:
  • transparent communication and reducing ambiguity,
  • encouraging neuroplasticity by supporting habit formation through repetition, reinforcement, and small, incremental steps, and 
  • fostering social connection, recognising that exclusion activates pain pathways, and inclusive leadership is key to engagement. 
  • Practical strategies involve storytelling to make change relatable, visual communication to clarify goals, and celebrating progress to activate the brain’s reward systems.
• Lead by example: Ultimately, no matter how you look at it, culture begins at the top. Senior leaders must embody the values and behaviours they wish to see in their organisations. This means walking the talk, holding themselves accountable, and creating an environment where others feel empowered to do the same.

Culture is the foundation of execution

Peter Drucker’s insight that “Culture eats strategy for breakfast” is not a dismissal of strategy’s immense importance; however, it is a profound reminder that the execution, not just planning, determines outcomes. 

Organisations that invest in understanding, shaping, and aligning their culture with strategic goals will consistently outperform those that treat culture as an afterthought.

By diagnosing culture, aligning it with strategy, leveraging neuroscience, and leading with intention, senior leaders can create environments where people are not only capable of executing strategy but are inspired to do so. Culture is not a “soft” matter; it is the bedrock of organisational success.

How Danshaw Consulting can add value

Is your company’s strategy not quite yielding the results you envision? 

Perhaps the unseen forces of your organisational culture are holding you back. 

Partner with us and leverage our expertise in identifying and aligning the vital few cultural elements that truly drive performance and strategy. 

 

We will help you gain crucial awareness into the often-overlooked dynamics within your organisation, transforming potential roadblocks into accelerators for sustainable success. 

– Written by Michelle Mostert