Culture Eats

Strategy for
Breakfast and
Transformation
for Lunch

By Gokhan Guley and Tracy Reznik

You must have heard the expression

“Culture eats strategy for breakfast.”
The sentence was attributed to the
management guru Peter Drucker in 2006,
and made famous by Mark Fields, who
later became chief executive of Ford
Motor Company.
We cannot be sure who said it first, but
what that phrase has led us to understand
is that culture is a strong enough force
within an organization that it can prevent
a strategy from being fully realized.
That is a powerful thought and a
double-edged sword.
Culture is the flywheel that maintains
stability. It creates organizational inertia
and a resistance to change—both good
and bad.
Like a spinning flywheel that resists
sudden changes in speed and direction, a
strong culture will help an organization
survive bumps in the road. At the same
time, it resists deliberate attempts by man-
agement to change speed and direction.

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 70%
O F T R A N S F O R M AT I O N S FA I L

If culture is strong enough to Mindset Cultural norms and shared

potentially derail the strategy of an Mindset is usually defined as the mindsets feed off of each other.
organization, how can we ever expect a underlying, often unstated assump- They lead to behaviors that contribute
dramatic transformation to take hold? tions and belief systems individuals to the firm’s general mood, organi-
Is culture one of the contributors to the adopt to process and interpret incom- zational vibe, and business results.
70 percent failure rate widely attrib- ing information. In other words, Transformations are desirable when
uted to attempts at transformation? mindset acts like a filter on incoming leadership recognizes the need for
When you hear about trans- information. change—to keep up with the market,
formation, you will often find that Although the mindset is thought for example, or to introduce new
practitioners of transformation and about at an individual level and may products or adopt technology.
organizational change refer to culture, differ from person to person, it is Once mindset is aligned with
mindset, and behavior in the same heavily interrelated with an organiza- the reasons for transformation, the
breath, as key points of focus. tion’s culture. behaviors must follow. Leaders must
In fact, it is the collection of model the behaviors that match the
individual mindsets that make up an desired values of the organization.
Culture organization’s culture. The only way to In the context of organizational
Organizational culture is the shared change culture is to change employees’ behavior and business transforma-
values and beliefs that characterize individual mindsets to embrace the tion, we use a more limited concept
a company, guide its practices, and new, collective values. of mindset than cognitive psycholo-
set the general attitude across its gists do in their analysis of human
employees. With its deep emotional behavior. Instead of two main types
roots, culture has enormous influence Behaviors of mindsets—i.e., fixed and growth
over how a company’s employees We exhibit mindset through our mindsets used in psychology—we
interact with each other, conduct behaviors; this is the only way culture look at the different ways “employees
business transactions—even what is created and maintained. At an can process, interpret, and respond to
they wear. organizational level, mindset may be incoming information.”
Corporate culture is often implied so firmly established that it creates a In the workplace, mindset-driven
through vision, mission, and value powerful incentive within the group behaviors can show themselves as
statements, but not consistently not to adopt or accept desired behav- collaborative versus competitive,
defined “on paper.” It develops iors, approaches, or tools. profit focused versus purpose driven,
organically over time from the The collection of the behaviors customer satisfaction driven versus
cumulative traits of the people the based on a fixed mindset can be efficiency focused, controlling versus
company hires, and the behaviors described by the phenomenon of empowering, etc.
management tolerates. mental inertia or “groupthink.” At its Considering that even in the
Culture is passed down through worst, groupthink may lead to a team context of psychology, people are
anecdotes and stories employees tell that ignores blatant red flags, makes completely capable of shifting from
around the proverbial watercooler. flawed decisions, and confidently a fixed mindset to a growth mindset,
Therefore, culture changes, but not marches down a path toward failure. in the workplace, behavior-specific
suddenly, and definitely not without Have you noticed these behaviors in mindset shifts are completely feasible
deliberate and intentional effort. your organization? and highly desirable.

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Culture Change + Mindset Shift + If the success of the transformation Identify the desired future-state
New Behaviors = Transformation is dependent on employees, how can culture.
The need for transformation usually an organization win their hearts and • Given its impact on organizational
emerges when groupthink leads the minds, and accurately relay the impor- effectiveness, the right culture is
organization away from success, in a tance of transforming into this new critical to realize the future-state
direction other than what the strategy way of working and doing business? vision and sustain results.
intended. Either through a false sense Here is a people-centered guide to • While identifying the cultural
of security or via a disillusioned view achieving a successful transformation: traits and behaviors required to
of the environment, an organization fully achieve the new vision, keep
under the influence of groupthink can- Assess the current organizational in mind that the more changes
not correctly assess changing market culture and the prevailing mindset. you make in the cultural norms of
conditions and does not take the As a leader, you must understand the your organization, the longer the
necessary steps to prevent failure. current playing field. transformation process will be.
So how can a transformation • What are the results from recent
succeed? employee surveys? Analyze the gaps between where you
Even though most transforma- • Do you have value and culture are now with company culture and
tions are triggered by executives in statements posted around the individual mindset and where you
response to internal or external workplace? want to be.
factors, they must be fueled from • Are your policies aligned with • Culture is often defined from the
within as a grassroots effort. A small your values? top down as leaders articulate the
group of executives alone cannot • For example, if flexibility is a vision for where they want the
make it happen without the support company value, do you have a company to go.
of the employees. work-from-home policy that is • Leaders proactively acknowledging
Therefore, success depends on in alignment? gaps in culture is the first step to
the organization’s ability to shift its • How rampant is the rumor mill? gain buy-in from the workforce to
employees’ mindsets, introduce new What is being said at the proverbial change mindsets and behaviors.
behavioral expectations, and imple- watercooler? How does it differ
ment cultural change. The purpose from reality? Articulate the “why” for the trans-
of a transformation is to operate formation. Why did you feel the need
differently. We can’t transform if we Set a transformation vision, and a to transform? Would your employees
don’t think and behave in a new man- road map to realize the strategy, that understand those reasons?
ner. Albert Einstein acknowledged, is compatible with the culture. • Multiple levels of alignment must
“Problems cannot be solved with the • Culture change takes time. occur for employees to fully under-
same mindset that created them.” Therefore, the strategy should not stand why a change in mindset and
be completely incompatible with culture is required for a corporate
the current culture if you want to transformation.
show near-term results. • As individuals, they must believe
• This does not mean the culture the organization has the capability
should not change. The vision and and capacity to change.
the strategy should be informed • They must understand the purpose
by the current culture, and set and the benefits of the change, not
the initial steps and early targets only for themselves, but also for
within reasonable reach, but at their team, their department, and
the same time include activities the organization.
Refer to Jabian’s Engagement Framework (Fall 2016
to change it.
Jabian Journal) as a cultural assessment and change
management guide to shifting employee mindsets.
The engagement framework calls out the drivers of
individual behavior and the levers organizations can
C U R R E N T C U LT U R E T O - B E C U LT U R E
pull to change behavior, and ultimately mindset and
culture. The engagement framework can be a guide to
assessing the impact of the transformation on people
in general to understand the tools, techniques, and
intensity of the effort required to maintain a productive,
engaged workforce that will sustain the changes and Set targets along the journey
reach success.

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 “ P R O B L E M S C A N N O T B E S O LV E D W I T H T H E S A M E M I N D S E T T H AT C R E AT E D T H E M .” ALBERT EINSTEIN

• Furthermore, the reasons for the • The goal is to get to a positive transformation that is not compatible
transformation must resonate at form of organizational mindset with it unless a concerted effort is put
the individual, team, department, and for the aligned behaviors to in place to manage the change.
and organizational levels for become habit. A well-thought-out transformation
true alignment. strategy focuses on mindset change
Communicate, communicate, that leads to behavioral change that
Kick-start the mindset and define communicate. When you think enables the transformation.
the behavioral expectations required you have communicated too much, In summary, consider these keys to
to align with the “why.” communicate some more. successfully manage a transformation:
• This critical early step can reduce • The leadership team alone cannot • Mindset and culture change are
the friction and the resistance to change the culture and cannot critical for the long-term success of
the overall transformation. transform an entire organization. the transformation.
• For the new vision and the strategy • If the leadership team is the only • Although updates to vision,
to be understood as intended, and group that understands and rallies mission, and values are great to
tasks to be executed as required, behind the “why,” then they are start with, remember that culture
the mindset, or the filter that helps the only ones who can shift to the cannot be expressly defined, but
the employees interpret incoming new mindset. only influenced, to evolve in a
information, may need to change • Remember that the case for certain way.
from the very start. transformation and the new vision • It is best to start the transformation
• In the business behavior context, associated with it have many layers. work with and within the existing
mindset can shift quickly with After all, you spent countless culture.
the proper training and change hours evaluating facts, debating • Highlight and capitalize on
techniques. options, refining your thoughts, strengths of the current culture.
• Once a “transformation” is and wordsmithing your messages. • Start changing mindset with focus
announced, a sense of insecurity You cannot expect the people who on a few critical behaviors and
and ambiguity arises. Clear were not with you throughout the policies.
expectations will alleviate anxiety: process to immediately understand • Let the successes spread across
• Provide examples of how you your logic and your conclusions. the organization.
want employees to behave under • Your audience will likely hear the • Use both rational and emotional
specific circumstances. details one layer at a time. Most communication techniques to
• Align those behaviors to the people will not even grasp the true influence the mindset, culture,
desired culture and the outcomes meaning of your message until and organizational behaviors.
of the transformation. they have heard it multiple times • Execute the technical and business
• Recognize and reward employees in multiple ways. It will take them changes competently, hand in
for shifting their mindset. even longer to digest the details hand with the cultural and mindset
• Repeat, repeat, repeat. before your message resonates changes.
• Update people policies and the with them.
infrastructure to align with the Gokhan Guley
target culture. Employees will not The Bottom Line: Focus on Mindset [email protected]
be able to shift their mindsets to The core tenet in the expression
the new, desired ways of working “Culture eats strategy for break- Tracy Reznik
if the underlying infrastructure fast”—attributed to Peter Drucker—is [email protected]
and policies do not allow them “compatibility.” Like a flywheel,
to develop and practice the new a strong culture will resist most
mindset and behaviors without changes, and will strongly defeat a
negative consequences.

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