How To Create A Culture Of Strategy Execution

Imagine crafting a brilliant strategy that promises to propel your company to new heights—only to watch it falter, leaving you wondering what went wrong. The truth is, strategy alone isn't enough. The success of any strategic plan hinges on something deeper and often overlooked: your organization's culture.

As Peter Drucker wisely put it: “Culture eats strategy for breakfast”. This reminds us that without the right cultural foundation, even the most promising strategies can crumble.

In this article, we delve into the essential steps to create an organizational culture that doesn’t just support your strategy but drives its success.

🎙️ If you're an auditory learner, check out our podcast where we explore these ideas in even greater detail:

Why Culture Is Crucial For Strategy Execution

Culture and strategy execution are often seen as separate entities within organizations, each requiring different attention and resources. However, these two elements are deeply intertwined, and neglecting one can lead to the failure of the other.

“Strategy execution ultimately is a big change process that impacts the entire organization, sometimes more, sometimes less. It’s about shifting mindsets and behaviors company-wide.”—Miriam Lesa, Strategy Execution Director at Cascade.

A strong organizational culture provides the foundation for this shift, making the execution of strategic plans not just possible but more likely to succeed.

Think of strategy as a carefully designed blueprint for a garden, outlining where each plant should go and how they should be nurtured. Culture, however, is the soil in which these plants will take root. No matter how detailed the blueprint or how well-chosen the plants, if the soil is barren, nothing will grow.

Similarly, no matter how brilliant a strategy is, it will struggle to take root and flourish in an environment lacking a supportive company culture.

Defining A Culture Of Strategy Execution

Building a company culture that drives execution requires intentionality and alignment between the organization’s strategic goals and its cultural values.

Culture eats strategy for breakfast—but it’s more than that

The idea that "culture eats strategy for breakfast" doesn’t suggest that strategy is unimportant. Instead, it highlights that without the right culture, even the most well-thought-out strategies are at risk of failure.

“Having one without the other is a recipe for disaster. You can have a great company culture, but if no one is working on the right things, the business won’t grow. Or you might have great execution, but if people hate their work, the business will suffer in other ways.”—Laura Blackmore, Head of Strategy Execution. at Cascade.

What is a culture of strategy execution?

A culture of strategy execution is one where the company culture and strategic goals are fully aligned. This alignment is achieved when every employee, from top to bottom, understands how their role contributes to the company goals. It’s about fostering a workplace culture where values and vision are not just words on a wall but are actively lived and breathed by all employees.

The Role Of Leadership In Building A Strong Organizational Culture

Company leaders are not only responsible for setting the strategic direction but also for nurturing the cultural environment that will enable that strategy to flourish.

Setting the cultural tone

“Leadership is critical in setting and maintaining a positive culture. When leaders lead by example, demonstrating the values and behaviors they wish to see in others, they set the tone for the entire organization.”—Laura Blackmore

Leaders must consistently reinforce the company values through their actions and decisions. They must be visible and active participants in the cultural life of the organization. This is particularly important in times of change or uncertainty, when employees look to their leaders for guidance and reassurance.

Guiding vision and values

A strong company culture begins with a clear vision and a set of values that align with the strategic direction of the organization.

“Having the company's values and vision really nailed down are the starting points to having a good company culture and great execution.”—Miriam Lesa

This alignment ensures that every action taken within the company is a step toward achieving the overarching goals. When values and strategy are aligned, it creates a sense of purpose and direction that permeates the entire organization, fostering employee engagement.

For example, if your goal is to lead in customer satisfaction, this should be reflected in core values like quality, innovation, and service. Reinforce these values at every level, from hiring to performance reviews, to embed them deeply in your culture.

Promoting accountability

Empowerment and accountability are critical components of strategy execution culture. Leaders must empower their teams to take ownership of their roles in the strategic plan. This fosters a healthy organizational culture of trust and responsibility, essential for business success.

This involves setting clear expectations and providing employees with the resources and support they need to meet those expectations. It also means recognizing and rewarding employees who contribute to the successful execution of the strategy, as well as addressing performance issues in a constructive way.

Integrating Culture Into Strategy Execution

To ensure that these two elements are seamlessly integrated, organizations must address both the logical and emotional aspects of strategy.

Overcoming the left-brain bias in strategy

“Strategy execution involves emotional intelligence, tapping into the ‘right-brain’ aspects of culture.”—Miriam Lesa

In many organizations, strategic execution is treated as a purely logical, left-brain activity focused on tasks, deadlines, and metrics.

But successful execution involves understanding how strategic changes impact employees emotionally and psychologically, ensuring that employee engagement remains strong throughout the process.

The "left-brain" approach to execution often focuses on the mechanics of getting things done—setting targets, monitoring progress, and ensuring tasks are completed on time and within budget. While these elements are important, they don’t capture the full picture.

Strategy execution is also a deeply human process that involves managing change, overcoming resistance, and inspiring people to embrace new ways of working. This is where the "right-brain" aspects of culture come into play. Emotional intelligence—the ability to recognize and manage one’s own emotions, as well as the emotions of others—is crucial in this context.

The role of middle management in culture and strategy

Middle management plays a crucial role in translating the strategic vision into day-to-day actions.

“If you don’t get the middle management to buy in, it’s really, really hard to execute successfully.”—Miriam Lesa

Middle managers are the bridge between leadership and frontline employees, and their buy-in is essential for ensuring the strategy is communicated and implemented effectively across all levels of the organization.

To ensure that middle managers are fully engaged in the strategy process, organizations should provide them with the tools, training, and support they need to succeed. This includes not only technical skills and knowledge but also the soft skills required to manage change and inspire their teams. Additionally, middle managers should be involved in the strategy development process from the outset, so they have a clear understanding of the strategic goals and how they relate to the company culture.

Connecting performance systems to culture

“The performance system of an organization should be connected to the strategy to reinforce the alignment between culture and strategy.”—Miriam Lesa

This connection ensures employees are not only aware of the strategic objectives but are also motivated to contribute to them, knowing their efforts are recognized and rewarded.

In practical terms, this means that performance evaluations, promotions, and rewards should be tied to both the achievement of strategic goals and the demonstration of the company’s core values.

By linking performance systems to culture, organizations can create a powerful feedback loop that reinforces the behaviors and attitudes necessary for successful execution.

Practical Tips To Create A Company Culture That Drives Execution

Creating a culture that drives execution requires a practical approach, combining empowerment, accountability, and continuous learning.

Here’s how you can implement these elements in your organization:

1. Empower employees to own their roles

Empowering employees to take ownership of their roles in the strategy execution process is vital.

Here are the steps to make this happen:

• Set clear goals: Ensure every employee understands their specific role in achieving the organization’s objectives. Clear goals provide direction and a sense of purpose.
• Grant decision-making authority: Allow your teams the autonomy to make decisions within their areas of responsibility. This fosters a sense of ownership and increases employee engagement.
• Establish accountability systems: Implement a system that tracks progress against goals and holds individuals accountable. Regular check-ins and performance reviews can help maintain focus.
• Reward performance: Acknowledge employees who contribute significantly to strategy execution. Recognition can be in the form of public praise, bonuses, or career advancement opportunities.

“The most successful parts of my career are where I had very clear goals and could attribute my impact.”—Laura Blackmore

2. Foster continuous learning & adaptation

For your organization to remain agile and responsive to changes, continuous learning must be embedded in the company culture.

Here’s how to promote it:

• Encourage a growth mindset: Promote a culture where learning from mistakes is valued. Encourage employees to view challenges as opportunities for growth—this fosters a healthy company culture where innovation thrives and fear doesn't dictate decisions.
• Provide learning opportunities: Offer formal training programs, workshops, and access to online courses to help employees develop new skills.
• Create feedback loops: Implement regular feedback sessions where employees can reflect on their progress and areas for improvement.
• Facilitate cross-functional collaboration: Encourage collaboration between different departments to share knowledge and innovate. This can be done through team projects, job rotations, or mentoring programs.

“Promote a culture where failure is seen as a learning opportunity”—Laura Blackmore

3. Leverage change agents for strategic success

Identifying and empowering change agents within your organization can enhance strategy execution.

Follow these steps:

• Identify influential employees: Look for employees who are respected by their peers and have a deep understanding of the organization’s operations.
• Engage critical voices: Involve individuals who may initially resist change in the strategy execution process. Their perspectives can provide valuable insights and help refine the strategy.
• Build a support network: Create a network of change agents across different levels and departments. This network can help disseminate the strategy and foster an inclusive culture that promotes buy-in from the broader team.
• Incorporate Feedback: Use the feedback from change agents to adjust and improve the strategy, ensuring it is practical and aligned with the realities of the business.

“Have the critical voices as your change agents.”—Miriam Lesa

Communication: The Key To Successful Strategy Execution

Effective communication is critical in reinforcing the strategy and the culture that supports it.

Over-communicating the strategy

“There’s no such thing as too much communication when it comes to strategy. Repeating the vision and goals across multiple channels keeps everyone focused and aligned.”—Miriam Lesa

Regularly reminding employees of the strategic goals and their role in achieving them helps maintain focus and alignment across the organization.

Communication isn’t a one-time event but an ongoing process that requires consistent effort and attention. This is especially true in the context of strategy execution, where the success of the strategy depends on the ability of all employees to understand and align their actions with the organization’s strategic goals.

To effectively communicate your strategy:

• Reinforce strategic objectives: Use various methods to keep strategic goals top of mind for all employees.
• Leverage diverse channels: Employ team meetings, company-wide updates, visual reminders (like posters and dashboards), and digital communication platforms.
• Maintain continuous dialogue: Regularly remind employees of the organization’s goals and how their work directly contributes to these objectives.

Creating a transparent and open work environment

A transparent and open work environment is key to fostering a positive company culture where employees feel valued and included.

“Transparency breeds trust, and trust is the foundation of innovation and collaboration.”—Miriam Lesa

This openness is crucial for encouraging innovation and collaboration, both of which are essential for successful strategy execution.

To build a transparent and open work environment:

• Encourage open communication: Create an atmosphere where employees feel comfortable voicing their opinions, sharing ideas, and raising concerns.
• Value employee contributions: Ensure employees feel heard and appreciated, which boosts engagement and commitment to the organization’s success.
• Break Down Silos: Foster a unified organizational culture by encouraging alignment throughout the organization.

Navigating Challenges In Building A Culture of Strategy Execution

Creating a company culture that supports strategy execution isn’t without its hurdles, but with the right approach, you can navigate common pitfalls and manage change effectively.

Common pitfalls in strategy execution

One of the biggest challenges is overlooking the cultural aspect of strategy execution.

"The only strategies that succeed are those that have culture and strategy working hand in hand. You can't neglect one without compromising the other."—Laura Blackmore

Focusing solely on processes and metrics can undermine your strategy if the company culture isn’t aligned. For example, a strategy that relies on collaboration will struggle in a culture that’s highly competitive and risk-averse.

Managing change fatigue and resistance

Change fatigue is a real concern when your organization is going through strategic shifts. Leaders need to balance the pace of change with their team’s ability to adapt.

"Change is inevitable, but the way you manage it determines whether it becomes a burden or a catalyst for growth."—Miriam Lesa

Too much change too quickly can overwhelm employees, leading to burnout and resistance. To manage this, introduce changes at a thoughtful pace, giving your team the time and resources they need to adjust. It’s also important to support your employees emotionally and psychologically during these transitions, helping them see change as an opportunity rather than a burden.

Fostering a culture of resilience and agility

Resilience and agility are key to navigating the challenges of strategy execution.

"True resilience isn’t just about bouncing back—it’s about evolving, learning from setbacks, and adapting to new challenges with a forward-looking mindset."—Miriam Lesa

Resilience allows your team to bounce back from setbacks, while agility helps your organization pivot quickly in response to external changes. Together, these traits create a strong foundation for executing your strategy effectively. Encourage a growth mindset within your team, where challenges are seen as opportunities for learning and improvement. Put systems in place that enable your organization to respond quickly and effectively to changes in the business environment.

Cascade: Your Partner In Building A Culture Of Strategy Execution

Creating a culture that drives effective execution takes more than just a good plan—it requires a cohesive approach that brings together vision, values, leadership, and clear communication. To truly embed strategy into your company culture, you need tools that empower your team, keep everyone aligned with strategic objectives, and foster continuous learning.

That’s where Cascade comes in. As the leading strategy execution platform, Cascade acts as the strategic brain of your organization, helping you turn big ideas into tangible results. With Cascade, you can plan, execute, and track your strategies all in one place, streamlining processes and speeding up decision-making.

Cascade ensures that your organizational culture stays in sync with your strategic goals. The platform’s powerful features help you monitor progress, adjust strategies as needed, and maintain a clear focus on long-term objectives. Cascade also strengthens alignment and focus across your entire organization, ensuring everyone is moving in the same direction and working towards shared goals.

👉🏻 Ready to see Cascade in action? Book a free 1-1 tour with our strategy experts or create a free account and try it out for yourself!