By Jim Mikula, President/CEO
In the bustling world of business, there's a saying that's gained significant traction over the years, "Culture eats strategy for breakfast." This quote, attributed to management guru Peter Drucker, has become a rallying cry for business leaders who recognize the paramount importance of company culture.
At its core, this statement suggests that no matter how brilliant your strategy might be, it's the culture that truly drives success. Think about it this way: you can have the most innovative product or the most efficient service model, but if your people aren't motivated, aligned with your values, or don’t work together well, your strategy is likely to fall flat.
So, what is meant by the “culture” of an organization? The Association for Talent Development (ATD), defines it as “the sum of the values, beliefs, practices and behaviors” that contribute to environment of an organization. National or community culture is most likely to be linked to deeply held values, while in an organization, it’s linked more closely to practices or behaviors. This means that company cultures are expressed in the way that people (including leaders) communicate or interact with each other, work together and care about each other.
Consider the many local, family-owned stores in our community. Some of them have been serving us for generations. Their strategy might be to offer competitive prices and a wide range of products. But what really sets them apart? It's the culture of Texas respectful politeness plus friendly and knowledgeable service that keeps customers coming back. This is a reflection our community culture, and It just might be our most important marketing tool.
Creating a great organizational culture isn't about slogans or motivational posters up. It's about leaders communicating their vision, values and expectations, leading by their own behavior and practices, giving their people some autonomy, and recognizing and rewarding the outcomes and behaviors that support success.
Last week, I talked about motivation and engagement. A strong culture provides the environment for engaged and motivated people know how to work with the team to achieve the best results. A positive culture is the glue that will energize the team to come together to solve problems, collaborate on innovations and maintain energy during the tough times.
For small business owners, this means paying attention to more than just the bottom line. It means considering how decisions will impact your team's morale, asking for their feedback and demonstrating your commitment to them. It means leading by example and consistently reinforcing the values that make your business or organization unique.
A strong culture doesn't happen overnight and neither does changing a culture. It takes time, effort, and consistent reinforcement. And don’t forget that cultures can evolve over time in response to business priorities, changes in people involved and changes in society. “Times are a-changing!” Our active workforce and its leaders are now spread over four generational cohorts: Baby Boomers, Generation X, Millennials and Generation Z. This means we all have to work harder to have effective communication with everyone in our workplace. There’s a lot of room for confusion and misunderstanding. This is a significant challenge in building and maintaining strong cultures.
The “culture” payoff can be significant. Businesses with strong, positive cultures often see lower turnover rates, higher productivity, and better customer satisfaction. Culture happens…whether you build it on purpose or if it forms itself by default. An unintentional culture can destroy or damage an organization with lack of coherent values, effective communication and bad behaviors and practices.
Next time you're crafting your business strategy, take a moment to consider your company culture. Are your employees excited about coming to work? Do they understand and believe in your company's mission? Are they empowered to make decisions and solve problems?
If you can answer yes to these questions, you're well on your way to creating a culture that will not just eat strategy for breakfast – it'll fuel your business's success for years to come.
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