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To quote Peter Drucker, "Culture east Strategy for breakfast." This statement emphasizes the importance of Corporate Culture in the success of an organization. The statement suggests that, no matter how well-conceived and well-executed an organization's strategic plan may be, it will ultimately be ineffective if the Organizational Culture is not aligned with its goals and objectives. In other words, if the Organizational Culture does not support and enable the implementation of its strategy, then the strategy will not be successful.

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Flevy Management Insights: Corporate Culture


To quote Peter Drucker, "Culture east Strategy for breakfast." This statement emphasizes the importance of Corporate Culture in the success of an organization. The statement suggests that, no matter how well-conceived and well-executed an organization's strategic plan may be, it will ultimately be ineffective if the Organizational Culture is not aligned with its goals and objectives. In other words, if the Organizational Culture does not support and enable the implementation of its strategy, then the strategy will not be successful.

So, why is Culture so important? Let's begin by defining Corporate Culture.

Corporate Culture, or Organizational Culture, refers to the shared beliefs, values, attitudes, and behaviors that characterize an organization and its employees. Corporate Culture is often shaped by the organization's mission, vision, and values, as well as by the personalities and characteristics of its founders, leaders, and employees. Corporate Culture has significant impact on an organization's performance; and can affect its ability to attract and retain talent, to innovate, and to compete in the market.

A critical reason why Culture is so important is that it shapes the behavior and actions of the organization's employees. When an organization has a strong and positive Corporate Culture, its employees are more likely to be engaged, committed, and motivated. They are more likely to contribute their best efforts to the organization's success.

On the other hand, when an organization has a weak or negative Organizational Culture, its employees are more likely to be disengaged, unproductive, and dissatisfied. They are more likely to leave the organization in search of a better working environment.

Likewise, Corporate Culture can help to attract and retain top talent. In today's competitive job market, many job seekers are looking for organizations that have a strong and positive Corporate Culture. Employees are willing to choose one employer over another based on the Culture of the organization. By focusing on building and nurturing a strong Corporate Culture, organizations can differentiate themselves from their competitors. They can attract and retain the best and brightest employees. This behavior is most notably exhibited in the Tech industry, where companies, such as Google and Meta, are famous for offering abundant and generous corporate perks for employees to maintain their employees' sense of happiness, loyalty, and engagement.

Corporate Culture is clearly an important aspect of organizational success. It is a critical, although often underemphasized, factor in the implementation and execution of an organization's strategic plan. By focusing on building and nurturing a strong and positive Organizational Culture, organizations can improve their performance, attract and retain top talent, and position themselves for success in a rapidly changing and increasingly competitive global market.

For effective implementation, take a look at these Corporate Culture best practices:

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