Culture Eats Strategy for Breakfast” and How It Can Transform Your Business

In business, one phrase has continued to stand the test of time: “Culture eats strategy for breakfast.” Originally coined by management guru Peter Drucker, this saying has become a mantra for modern business leaders. But what does it really mean? And why should you, as a CEO, Founder, or Entrepreneur, prioritise culture over even the most meticulously crafted strategy?

What Does “Culture Eats Strategy for Breakfast” Mean?

When Peter Drucker first coined the phrase, it was a powerful reminder to business leaders that no matter how strong their strategic plans might be, the company’s culture will always have a bigger impact on its success. In simple terms, you could have the best strategy on paper, but if your culture is toxic or disengaged, your business will struggle to execute that strategy.

Culture encompasses the collective beliefs, behaviors, and values that drive your team. It shapes the way people interact with one another, how decisions are made, and how the company responds to challenges. When a strong culture exists, it acts as a catalyst for growth, innovation, and collaboration. Without it, even the best-laid plans can crumble.

The Power of Culture in Business

Mark Fields, the former CEO of Ford Motor Company, once said, “Culture is more important than strategy.” He knew that for a company to thrive, especially in a competitive industry like automotive, it needed more than just a solid game plan. It needed a culture that encouraged risk-taking, innovation, and collaboration.

Fields’ sentiment is echoed across industries. A strong culture creates an environment where employees feel empowered to contribute ideas and make decisions, which in turn drives innovation and problem-solving. When people believe in each other’s abilities and share a common vision, they are more likely to take ownership of their work—and go the extra mile to ensure success.

Conversely, if the culture is weak, people may feel disconnected, disempowered, or unsure of how they fit into the bigger picture. This lack of engagement leads to poor decision-making, misalignment with company goals, and ultimately, the failure of any strategic initiative.

Why a Strong Culture is Essential for CEOs and Entrepreneurs

As a CEO, Founder, or Entrepreneur, you already know the importance of strategy. But are you investing enough in building a strong, resilient company culture?

Think of it this way: culture is the foundation upon which all strategies are built. Without a solid cultural foundation, you’re essentially building a house on sand. No matter how intricate or well-thought-out your strategies are, they won’t hold up without a strong, supportive culture beneath them.

Let’s look at some specific ways in which culture influences business outcomes:

1. Hiring and Retaining Talent

The famous saying “hire for attitude and train for skill” holds a lot of truth. A candidate may have an impressive resume, but if they don’t align with your company’s values or vision, they may not last long—or worse, they may bring negativity into the workplace.

Building a strong culture means attracting people who not only fit your company’s needs but who will also contribute positively to the workplace environment. This leads to lower turnover, higher employee satisfaction, and a stronger team overall. Once you have the right people in place, strategy becomes much easier to execute.

2. Driving Innovation

Culture and innovation go hand in hand. A company with a strong culture will foster an environment where employees feel safe to experiment, take risks, and think outside the box. This is critical for entrepreneurs and startups that need to pivot quickly or come up with creative solutions to stay ahead of the competition.

If your culture discourages risk-taking or punishes failure, you’ll struggle to innovate. On the other hand, a culture that celebrates creativity and supports calculated risks will naturally breed innovation.

3. Improving Customer Experience

Your culture extends beyond your internal team—it also influences how customers perceive your brand. When your employees feel connected to your company’s mission and values, they’re more likely to go above and beyond to deliver exceptional customer service.

A strong culture creates an alignment between what your company stands for and how your employees interact with customers. Whether consciously or unconsciously, customers can sense when something isn’t right within a company, which is why culture can directly affect your customer relationships and loyalty.

Building a Culture That Supports Strategy

Now that we’ve established the importance of culture, the next question is: How can you build a culture that strengthens your strategy?

Here are a few actionable steps to get started:

1. Define Your Core Values

The first step in building a strong culture is to define your core values. These are the guiding principles that will shape every decision, from hiring to customer interactions. Your values should reflect not only what your company stands for but also the kind of environment you want to create.

2. Lead by Example

As a leader, your actions set the tone for your company’s culture. If you want to create a culture of openness and collaboration, you need to model that behavior. Encourage feedback, involve your team in decision-making, and demonstrate a commitment to your company’s values.

3. Empower Your Team

Give your employees the autonomy to make decisions and contribute ideas. When people feel empowered, they’re more likely to take ownership of their work and feel invested in the company’s success. This leads to higher engagement, better performance, and a stronger culture overall.

4. Recognize and Reward Cultural Alignment

One of the most effective ways to reinforce your culture is to recognize and reward employees who embody your company’s values. This could be through public recognition, promotions, or other forms of reward. When people see that cultural alignment is valued and rewarded, they’re more likely to prioritize it in their own behavior.

Conclusion: Culture is the Engine Behind Strategy

The phrase “Culture eats strategy for breakfast” isn’t just a catchy slogan—it’s a powerful reminder that culture is the engine that drives business success. Without a strong culture, even the best strategies will falter. But with a culture that fosters collaboration, innovation, and empowerment, your business will be positioned to thrive, no matter what challenges come your way.

As a CEO, Founder, or Entrepreneur, investing in your company’s culture is one of the smartest decisions you can make. It’s not just about creating a pleasant work environment—it’s about building a foundation that supports every aspect of your business, from talent acquisition to customer experience, and ultimately, long-term success.