Peter Drucker, one of the most influential management thinkers of all time, is often credited with saying, “Culture eats strategy for breakfast.” It’s a simple yet profound statement that reminds us of a critical truth: no matter how brilliant your business plan is, it’s the people, their shared values and company culture that will make or break it.
This phrase has been quoted endlessly in boardrooms and leadership talks, and for good reason. But what does it really mean? Where did it come from, and why does it hold such weight in the way we think about managing organisations? Let’s dive in.
Where Did It Come From?
Peter Drucker never actually wrote this phrase in any of his books, but it perfectly captures his core belief that people, and the culture they create, are at the heart of every organisation’s success. It was later popularised by leaders like Mark Fields, former President of Ford Motor Company, who used it to underline the importance of culture in driving real, lasting results.
It’s not a dismissal of strategy—far from it. Instead, it’s a recognition that even the best-laid plans will fall apart without the right cultural foundation.
Why Company Culture Trumps Strategy
At first glance, strategy might seem like the obvious key to success. After all, it’s your roadmap: where you’re going, how you’ll get there, and how resources are allocated. But the reality is, without the right culture, strategies tend to unravel. Here’s why:
- Culture Shapes Behaviour
Culture defines how people show up to work, how they collaborate, and how they make decisions. It’s the invisible force guiding day-to-day actions—and those actions are what bring any strategy to life. - Culture Outlasts Strategy
Strategies shift with market trends, competition, or new goals. Culture, however, is deeply ingrained and provides stability. It’s the constant in an ever-changing environment. - People Execute Strategy, Not Ideas
A brilliant plan is worthless if the people responsible for it aren’t engaged or aligned. Culture is what connects employees to a shared purpose, motivating them to go the extra mile. - Culture Builds Resilience
During tough times, whether it’s an economic downturn or internal changes, a strong culture helps organisations hold steady. Employees who feel valued and part of a cohesive culture are more likely to stick around and adapt to challenges.
Why Managing Company Culture Matters
Culture doesn’t just happen. It needs to be nurtured and intentionally shaped. Here’s why it’s worth the effort:
1. Boosting Employee Engagement
Engaged employees are more productive, creative, and loyal. Research shows that companies with high employee engagement are 21% more profitable than those without it. When you prioritise culture, you create an environment where people want to contribute their best.
2. Attracting and Keeping Talent
People don’t just choose jobs based on salary anymore—they want to work somewhere that aligns with their values and makes them feel like they’re part of something meaningful. A strong culture becomes your competitive edge in attracting and retaining top talent.
3. Fostering Innovation
An open and collaborative culture encourages new ideas and creative problem-solving. When employees feel safe to take risks and challenge the status quo, innovation thrives.
4. Aligning Teams with Goals
Culture isn’t just about ‘feeling good.’ It’s about aligning values and behaviours with your organisation’s mission. When everyone is rowing in the same direction, your strategies become easier to execute.
5. Adapting to Change
The only constant in business is change. A well-managed culture provides the adaptability and trust needed to navigate big transitions, whether that’s a merger, a new strategy, or a shift in market conditions.
How to Build and Manage Culture
Culture is shaped by what you do every day—not a one-off workshop or a motivational poster in the break room. Here are some ways to create and sustain a strong culture:
- Define What You Stand For
Be clear about your organisation’s values and purpose. These should be more than buzzwords—they should guide every decision and action. - Walk the Talk
Leaders play a huge role in setting the tone. Your actions, not just your words, show employees what’s really important. If you want trust, collaboration, or innovation, you need to embody those qualities first. - Encourage Open Communication
Culture thrives in environments where people feel heard. Create spaces for honest feedback, discussion, and collaboration across all levels of the organisation. - Celebrate the Right Things
Recognise and reward behaviours that align with your values. When people see these actions being celebrated, it reinforces the kind of culture you’re building. - Keep Checking In
Culture isn’t static. Regularly assess how people feel about the workplace and adjust as needed. Use surveys, focus groups, or one-on-one conversations to understand what’s working and what’s not.
Culture and Strategy: A Partnership
It’s easy to pit culture and strategy against each other, but the truth is, they work best when they’re in harmony. Culture creates the conditions for your strategy to succeed. A strong strategy aligned with a positive culture is a winning combination.
Think of culture as the soil in which your strategies are planted. Without fertile ground, even the most carefully planned seeds won’t grow. But when the soil is rich and nurtured, your ideas can flourish.
Final Thoughts
Peter Drucker’s reminder that “culture eats strategy for breakfast” is as relevant today as ever. Culture is not just a nice-to-have; it’s the foundation of everything an organisation does. By investing in a strong, positive culture, businesses can unlock the full potential of their strategies, their people, and their future.
So, next time you’re planning your next big move, take a step back and ask yourself: does the culture support it? If the answer is no, it might be time to start there. After all, no strategy can succeed without the right culture to back it up.