In Business, Culture Eats Strategy for Breakfast

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Strategy is often talked about in business schools, in fact it’s a primary focus. Culture however,
is less understood. Culture involves a variety of contributing factors including a blend of
attitudes, beliefs, mission, philosophy, and momentum that help to create and sustain a
successful brand. It represents the vision, norms, symbols, beliefs, behaviors, and traditions that
are taught to new members of an organization. Organizational culture affects the way people
within an organization interact with one another and the people they serve.
 
Consistently ranked as great companies to work for, organizations like Zappos and Apple are
both examples of companies with a distinguished culture and solid strategies. Although all
companies have ups and downs, these have remained strong over a long period of time. An
important factor in their success is their strong organizational culture.
 
Organizational culture has a much stronger power on employees’ motivation than strategy does.
Culture fuels growth. It’s the secret sauce of strategy. Without the sauce the strategy isn’t as
good. Corporate culture describes and governs the ways a company's owners and employees
think, feel and act. It is built from the combined experiences of the members of an organization
at all levels.
 
Culture is key in an organization for long-term success. It is the most important thing in an
organization and it applies at all levels, from the top of the organization all the way down.
Rules, regulations, and operating standards are important, of course, because you have to have
systems in place to guide activities. But culture is the factor that stands above all others.
 
There are many factors that go into building an organizational culture. Each successful company
has a different combination of factors that makes their culture successful. Here are a few that I
think are particularly important:
 
1. Traditions
 
Traditions help make a company what it is. They tell the world who they are as an organization.
One way for an organization to maintain and develop its organizational culture and ethos is to
introduce and celebrate a variety of traditions. Disney in particular has been a master of this
concept by training all new employees on the traditions of the organization. Strong traditions
that are applied throughout an organization are one of the best ways to maintain a healthy
organizational culture.
 
2. Mission
 
A burning mission can give laser focus to an organization. The mission statement needs to
be short and memorable. Most importantly, it needs to be a rallying cry for people throughout
the organization. One thing I’ve learned in running a business for almost thirty years is
that “ignorance on fire is better than knowledge on ice.” Getting employees and clients excited
about the mission is critical to organizational success. If the average employee can’t recite
 
your mission – it’s too long. Amazon.com has a great example of a short and effective mission
statement. They state that their “vision is to be earth’s most customer centric company; to build
a place where people can come to find and discover anything they might want to buy online.”
 
3. Engagement
 
Collaboration encourages engagement. Get all levels of an organization involved. In BNI,
the global referral network I founded almost 30 years ago, we have focused on getting a high
level of engagement at all levels of the company. This engagement includes a Franchise
Advisory Board made up of key franchisees to address organizational challenges, a Founder’s
Circle of stake holders to provide direct feedback to management about issues concerning the
organization, a Board of Advisors made up exclusively of clients to ensure engagement regarding
policies that effect the organization globally, an Executive Council made up of the largest seven
master franchisees within the organization, as well as a number of other entities to help ensure
full participation at all levels of the organization. Engagement can be messy, but when done
correctly, it encourages a collaborative culture.
 
4. Recognition
 
Many years ago, Ken Blanchard got it right in The One Minute Manager. He said, “catch people
doing something right” and recognize them publicly. Praise in public and re-direct in private.
No truer words have ever been spoken when it comes to building a healthy organizational
culture. Recognize and celebrate successes. As Blanchard says, if you can’t catch people doing
something right – then catch them doing something ‘partially right’ and recognize that.
 
5. Education
 
Immerse and engage in a culture of learning. The more a company can integrate ongoing
learning into the organizational ethos, the more likely that company is to stay nimble and
prepared for change. Educating the organization regarding the culture of the company is
particularly important to fuel and maintain a great culture. A great strategy keeps you in the
game, however, a great culture helps you win. Especially important are the traditions and
mission of the company. These things need to be part of the ongoing education of all new and
existing employees.
 
Culture is a critical key to organizational success. It is one of the most important things in a
company and it applies to all levels, from the top of the organization all the way down. The
challenge with culture is that it is illusive. The best and most scalable culture is one that is
managed and maintained by the majority and not by a single policing body or by management
alone.
 
Companies that dominate an industry for a long period of time do so because of a shared vision
of organizational culture that is effectively implemented throughout the company. That shared
implementation of the vision is an important key to building a successful organizational culture.
If all the people in an organization row in the same direction in unison, that organization can
dominate any industry, in any market, against any competition, at any time.
 
Implementing a strong organizational strategy can be difficult however, implementing a healthy
organizational culture is rare and in my opinion when all is said and done; culture, eats strategy
for breakfast any day.
 
Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times
bestselling author. He is the Founder and Chairman of BNI, the world’s largest business
networking organization. His newest book can be viewed at www.IvanMisner.com. Dr. Misner is
also the Sr. Partner for the Referral Institute, an international referral training company.

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