Business guru Peter Drucker once said, “Culture eats strategy for breakfast!” By this he did not mean that strategy was unimportant but, rather, that culture is a more important determinant of the success of a company than strategy. Culture is the “set of values and attributes that shape how things get done in the organization.” Getting the culture right is a prerequisite for making the strategy work. This is because culture determines our ability to implement.

Any strategy is only as good as its implementation. Thoughts in our head or on paper do not create value. Action creates value if it is the right action. Strategy defines the action but culture energizes the action. The right culture provides the motivation, innovation, and collaboration that provide the energy for implementation. The right culture aligns the organization and its resources with its strategy so that it all works together to achieve the desired results. The best strategy in an organization with a poor culture or a culture that is not aligned with the strategy falls flat because the implementation fails.

On the other hand, a mediocre strategy from an organization that has a great culture can still lead to a very successful business. A great culture is attractive and infectious. Culture alone can draw in loyal customers. Picture a commodity business, perhaps selling gravel. There are not a lot of opportunities to innovate or differentiate the product of gravel. But a culture that delivers excellent customer service and relationships can become a competitive advantage and provide the basis for a successful strategy.

Culture and business strategy are inextricably linked. The best companies get them both right but culture can determine the success or failure of any strategy.

Which one is holding back your organization – strategy or culture? What action are you taking to move forward or develop alignment?