Culture as a Strategic Advantage

Successful leaders know that workplace culture isn't just a feel-good concept, but a powerful, intentional tool that can drive strategic success. Far beyond a set of values or norms, a strong, purposeful culture is something that top-performing organizations have in common.

Leaders who understand how to shape and align their culture with organizational goals can leverage it to achieve objectives and ensure long-term success.

This article explores how an intentional culture is the foundation for effective strategy execution and why it matters now more than ever.

Companies with strong cultures can experience up to 85% higher net profit over five years. (Forbes)

What is Organizational Culture? 

Organizational culture is the foundation on which your company's success is built. At its core, culture refers to the behaviors, values, and norms that are considered acceptable and expected within an organization. It’s a shared belief system established by leadership and ingrained throughout the entire company.

What some may not realize, however, is that culture is not just about having a friendly workplace or celebrating employee successes. A strong organizational culture is your strategy execution engine. It drives how employees approach work, make decisions, and collaborate to achieve your company’s goals. When aligned with business objectives, culture propels the execution of your strategy, turning vision into action.

How to Use Culture as a Strategic Tool 

Let’s explore leveraging culture as a strategic tool to drive your organization’s success. Below are tips to help you create and cultivate a culture that aligns with and accelerates your strategic objectives.

Make Your Culture Strategically Relevant

An organization is far more likely to achieve its long-term objectives when its culture is aligned with and supports its business strategy. Culture should not be an afterthought—it needs to be intentional and strategically relevant. Here's how to make that happen:

Focus on Your Business Strategy First

Before you can shape your culture, establish a clear strategy that outlines your company’s direction and goals.

Communicate Your Strategy Clearly

Once your strategy is set, ensure that it is communicated transparently across the organization, from top to bottom.

Empower Employees to Take Ownership

Give employees the autonomy to contribute to the execution of the strategy. When they feel personally invested, performance will improve and buy-in will grow.

Promote a Strong Culture Among Your Employees

A strong culture drives performance by energizing employees and creating unity around shared values. It shapes behavior, boosts morale, and ultimately increases productivity. Here’s how you can foster a culture that inspires action:

Avoid Over-reliance on Formal Procedures

Instead of rigid policies, encourage informal cultural norms that empower employees to embody the company’s values.

Foster Independent Thinking

Give employees the freedom to innovate and think critically. This will lead to a stronger commitment to organizational goals.

Encourage Collaboration and Creativity

A unified, inspired workforce collaborates more effectively, driving better results.

Recruit and Select People for Culture Fit 

When it comes to creating a thriving culture, hiring people who align with your values is critical. Culture fit is just as important as skills and experience. Here’s how to make sure you’re hiring the right fit:

Identify Key Traits for Culture Fit 

Look for qualities that align with your organization’s values and mission, and assess potential hires based on those traits.

Prioritize Culture Fit Over Immediate Skills 

While specific job skills are important, someone who aligns with the culture will have a better long-term impact. Remember, skills can be taught, but culture fit is harder to develop.

Consider Personality and Adaptability 

Candidates who demonstrate adaptability and collaboration will be more likely to thrive within your organization’s culture.

The Importance of Leadership in Demonstrating Culture

Leaders are the living embodiment of an organization’s culture—they set the tone from the top. Employees closely observe leaders’ behaviors—from what leaders spend time on, prioritize on their calendars, and choose to celebrate. These seemingly mundane tasks send powerful signals about what matters most within the company.

When leaders reinforce culture through everyday actions, employees gain a clear understanding of what behaviors are valued and which ones are likely to be rewarded or overlooked. Here are some ways to ensure you send the right signals.

Regularly Review Your Behavior

Take a step back to analyze the signals you're sending through your actions. Ensure your behavior aligns with the culture you want to cultivate.

Lead by Example—Your Actions Speak Louder than Words

Vision statements and policies are important, but employees are much more likely to internalize your priorities based on what they see you doing.

Interpret Key Events Through a Cultural Lens

Help employees understand organizational changes and important moments by explaining how they align with your company’s values. If you don’t, employees will fill the gaps with their own interpretations, which may not reflect the intended cultural message.

Cultivating a strong, strategically aligned organizational culture is about building a foundation to propel your company to success.

When leaders harness culture as a strategic tool, they unlock the full potential of their teams, creating an environment where innovation thrives, collaboration flourishes, and organizational objectives become a shared mission. 

References

• https://www.shrm.org/topics-tools/tools/toolkits/understanding-developing-organizational-culture
• https://executive.berkeley.edu/thought-leadership/blog/culture-powerful-leadership-tool 
• https://online.hbs.edu/blog/post/creating-a-culture-of-strategy-execution
• https://hbr.org/2022/06/does-your-companys-culture-reinforce-its-strategy-and-purpose
• https://executive.berkeley.edu/thought-leadership/blog/leadership-innovation
• https://www.gallup.com/workplace/651980/managers-feeling-connected-organization-culture.aspx 
• https://executive.berkeley.edu/thought-leadership/blog/tone-top