This quote has been frequently misunderstood and used as a justification for large culture change programs - without being specific about the strategy. I have tried to address this misunderstanding.

1. Does Culture really EAT Strategy
for breakfast?
CULTURE IS NOT MORE IMPORTANT THAN STRATEGY
Peter Drucker’s quote, famously cited by a former president of Ford, has been used to
make a point about the importance of culture in an organisation. It has also been often
misunderstood to mean that culture is more important than strategy, and that culture
should be the priority of organisations that seek to improve their performance.
Sadly, I have seen this misunderstanding used as justification for massive culture change
programs, while at the same time paying only limited attention to the development of a
clear strategy.
The original intent of this quote is clear - if the strategy is not supported by the culture, the
strategy will fail. This point is further highlighted by studies suggesting that the social
forces within an organisation will hinder the development of an optimum strategy because
of vested interests and institutional biases .1
SO, WHAT DO WE DO?
Clearly we need to develop both strategy and culture in a purposeful manner - at the same
time. And we need clear alignment across the two in order for the organisation to be
effective.
To do this, we need to focus on three issues:
1. Decide whether culture will filter the strategic options we choose, or whether we
plan to re-forge the culture to suit a new strategy
2. Specify clearly the strategy with which we choose to compete
3. Purposefully shape the new culture and capabilities, out of which the new strategy
will emerge.
Strategy: Beyond the Hockey Stick, Bradley, Hirt and Smit, McKinsey and Company, 2018.1
© Norman Chorn 2018 • norman.chorn@brainlinkgroup.com • (0416) 239 824 • Page 1

2. ACTIONS TO BUILD AN ALIGNED STRATEGY AND
CULTURE
1. Culture as a filter? Culture as a driver?
• Using culture as a filter allows you to choose strategic options that are compatible with the existing
culture. This is a lower risk approach, and leverages any existing cultural strengths you have. It is
effective when you seek to make incremental changes to strategy. However, it is unlikely to produce
any disruptive advantage within the industry.
• Treating culture as a driver suggests that you wish to make changes to the organisational capability
and culture to enable strategic change. It is a bolder approach with somewhat greater risk, but it can
change the strategic posture of the organisation. It is designed to produce greater differentiation and
competitive advantage.
2. Specify the competitive strategy
• The competitive strategy should be expressed in terms of the overall policy to be adopted, rather than
the goals you wish to achieve. For example, “growth” or “repositioning” may be reasonable goals, but
the underpinning policy to achieve these outcomes should be clearly identified. See the diagram below.
3. Purposefully shape the culture and key capabilities
• Define the culture and capabilities that ‘mirror’ the corresponding strategy - ie that will give rise to the
intended strategy. See the diagram below:
These combinations are designed to produce an alignment of strategy and culture - and produce better
organisational performance.
________________________________________________________________________
Dr Norman Chorn is a strategist and organisation development practitioner with the
BrainLink Group. He uses principles of neuroscience to address the challenges of
developing strategy in a complex and uncertain environment. His particular areas of
focus are strategy in conditions of uncertainty; organisational and cultural alignment;
and strategic leadership.
Subscribe to our regular articles No spam guaranteed
© Norman Chorn 2018 • norman.chorn@brainlinkgroup.com • (0416) 239 824 • Page 2