Strategy vs. Culture – Which Comes First?

a right way/wrong compass addresses the question: Strategy vs. Culture - Which Comes First?

Strategy vs. Culture – Which Comes First?
Most of our clients have a high growth strategy.  They want to grow revenues and profits quickly before their market shifts.  But unless leaders are careful, they risk sacrificing the corporate culture that helped you succeed up until now.

Do you have to make a choice between your corporate strategy and your corporate culture? The short answer is no.  Both are critical to your overall success.  The timing however matters a great deal.

The Importance of Strategy – 31% of the Difference
Our organizational alignment research found that strategic clarity accounts for 31% of the difference between high and low performing organizations in terms of revenue, profitability, customer satisfaction and employee engagement.

The Importance of Culture – 40% of the Difference
We define culture as the way things get done on a day-to-day basis.  Our organizational alignment research found that workplace culture accounts for 40% of the difference between high and low performance.

Getting Aligned – Strategy Must Go Through Culture and People
The key is organizational alignment. When your workplace culture and your business strategy are at odds (often in the pursuit of high growth), you are headed for trouble.

It is your business strategy (the what) that provides the true north to ruthlessly prioritize investments and to make tough decisions.  It is your corporate culture (the how) that guides your business practices and keeps behaviors, beliefs and assumptions on the right path to execute your strategy in a way that makes sense.

Without Organizational Alignment
If your business strategy is unclear, unbelievable or too difficult to implement for your marketplace or corporate culture, it is almost impossible to create an aligned and high performance culture.  So, while we also believe that “culture eats strategy for breakfast,” you cannot create an aligned and high performance culture without first developing a clear and compelling strategy.

Strategy Comes First
So, from our perspective, Strategic Clarity almost always comes first – before cultural change.  Why?  Because you need to know where you are headed to provide the context for “How” you will get there.

But, once your strategy is clear, believable and implementable enough, you must take the time to purposefully align your corporate culture to your specific strategy for it to have a chance to succeed.

What Happens When Strategy and Culture are Unaligned?
The pressure to grow without a healthy and aligned culture can lead companies astray. Just look at Wells Fargo. The leadership seemed to emphasize growth at all costs.  Between 2011 and 2015 employees who were feeling the pressure opened over 1.5 million deposit accounts and 565,000 credit-card accounts that may not have been authorized.

Some customers were charged fees on accounts they didn’t know they had. The focus on growth without true alignment with a culture of integrity led to unprecedented fraud in the banking industry.

The Risks of Misaligned Strategy and Culture
In addition to the recent culture horror stories at Wells Fargo, Uber and VW, if you lose the “great place to work” culture that got you started on the path to success, you will begin to lose your top talent, experience a decline in employee engagement, and be less attractive to the “A” players you need to succeed.

It is very much worth it to ensure that your culture remains healthy and positive. Otherwise you will lose the competitive edge required to grow.

Strategy and Culture Starts at the Top
While we recommend actively involving the entire organization in the strategy and culture design and alignment process, your leaders are the ones who must fully commit to the desired strategy and culture.  Then they must “live” it in both their actions and words. The Board, the CEO, the senior managers…all have to buy into and model the strategic direction, behaviors and values of a high performing organization.

Then every employee needs to understand what is expected and that they will be held accountable…as will every leader.

The Bottom Line
When your corporate values and behaviors are aligned with a clear and compelling strategy, your employees are set up to think and act as one.  This creates true alignment and the pathway to high growth.

To learn more about creating an aligned and high performance culture, download 3 Levels of a High Performance Culture

Comments are closed.

Understanding and conforming to legal compliance was very important to our company. We turned to LSA Global to provide a quality and cost effective way to ensure that we were AB 1825 compliant. Their interactive eLearning program was top-notch. It allowed our managers to learn at their own pace, and on their own time. The program was tailored to include our logo and our internal harassment policies. It was interactive and met all federal and state legal requirements. I would highly recommend LSA Global to any company looking for an efficient and effective and top quality way to train their managers to be in compliance.

Kelly Warren, SPHR
Director, HR & Compliance

Here’s a token of my appreciation for ALL your efforts. I’m offering my most sincere appreciation, and it extends to all the folks who made our customized management development programs possible.

Susan Anderson
Workforce Planning Bureau

The refreshing thing about LSA is that they focus on understanding our business situation and helping me succeed instead of selling a product. With over 150 experts, they are an invaluable resource that helps me deliver higher quality results faster. I recommend them to anyone looking to improve the performance of their workforce.

Stacie Rodgers
VP of Human Resources

Cutera

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

For our go to training outsourcing partner, LSA provides exactly what we want. As always, they deliver outstanding work!

Elizabeth Siebert
Director, Organizational Excellence & Development

Intuit

Each program is preceded by an assessment of the participants. The course is then designed to fit the specific parameters and needs of the group. The highly interactive delivery is provided by recognized experts in their fields. On the spot coaching is provided during the program and each participant receives individual follow-up after the course. Courses can be delivered in-person or virtually. Given the nature of Cisco’s business and the way we operate, these remote workshops are a must for anyone who joins our company. Their work is eye opening. Great content and fantastic delivery.

Frank J. Kuypers
Business Development Manager

LSA exceeded all my expectations. We interviewed 7 potential training and consulting partners and selected LSA due to their expertise, flexibility, and breadth and depth of solutions. We were able to construct a management training course from the modules most appropriate to our needs, and are able to provide additional training from their well developed portfolio of experts. Our managers galvanized as a team throughout the session and are better prepared for the rigors of a competitive market.

Mitch Mandich
CEO

Edify

What a refreshing change from the half-baked psycho-babble you normally get from “training” organizations. LSA gives you the assistance you need to define and reach your goal, and then they give you a results driven plan – not just a temporary fix. They are great to work with, and even more importantly, they “get it!”

David Fiano
Vice President Human Resources

We recently contacted LSA Global to assist us with a unique training request. We gave LSA a very short deadline and LSA custom designed a training program to meet our exact requirements within the limited time allotted to them. We found their facilitator to be well versed in the subject matter and very credible; the design provided practical and valuable information to our team of managers. I highly recommend LSA Global, particularly in the area of management training.

Julaine K. Souza
Senior Vice President

I have worked with other training companies and found it to be more of a seller/buyer relationship than one of matching the right expertise to our business issues. That’s what LSA does – ask the hard questions, listen, and understand our business needs. We receive the benefit of their expertise from assistance with personal development plans to enhancing team performance, to looking at enterprise-wide challenges. It’s all about helping our business succeed as we grow. Right now, LSA is providing great ideas, a fresh approach, and valuable guidance as we develop our management team and accelerate our client relationship management results.

Kristin Westland-Kaune
Director, Team Development

We consider LSA Global our outsourced learning and development partner. We worked closely with LSA to customize a management development program to meet our growing business needs. I would highly recommend LSA to any company wanting to deliver quality learning solutions.

Terri Wright-Scheer
Vice President Human Resources

LSA’s customized Effective Presentation Skills program has helped me elevate my presentation skills to the next level. I now have a much greater self-awareness of my presentation skills and can leverage off of my strengths while working to improve upon other areas. I would definitely recommend this solution to anyone for whom business presentations are an integral part of their job.

Jim Elliott
Senior Marketing Manager

Samsung

Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

We signed up with LSA early on–as their 22nd Member! Since then, our organization’s learning needs have increased and decreased and increased again with the changing times. The beauty of the LSA business model is its flexibility…when we needed to supplement our own internal resources, we used LSA services knowing that we could depend on the outstanding quality of the leadership development and management training programs they provide.

Margie Bunting
HR Manager

On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

Cam Greig
Associate Director

Roche

Evaluate your Performance

Toolkits

Toolkits

Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.

More

Health Checks

Health Checks

Want to know how you stack up against leading organizations?  Receive a complimentary benchmarking analysis courtesy of an LSA Expert.

More

Whitepapers

Whitepapers

Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.

More

Methodology

Methodologies

First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.

More

Blogs

Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.

More

Case Studies

Client Case Studies

Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.

More