According to management consultant Peter Drucker: ‘Culture eats strategy for breakfast’. And there’s a good chance of this being true, especially since studies have shown a direct correlation between a strong, positive organisational culture and a business’s financial success.
The importance of culture
Prof JL Heskett writes in his 2011 book, The Culture Cycle, that a positive culture can make as much as a 20-30% difference in company performance, when compared with “culturally unremarkable” opponents.
Culture is also a form of protection – strong competitors may be able to copy a strategy, but can’t duplicate a culture. Indeed, when things go wrong in the economy, public opinion, or even the strategy itself, a company’s culture can serve as a safeguard against these, because employees are faithful to it.
But… while culture is a remarkable thing, it’s difficult to define and attain.