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Aligning corporate culture with strategy is essential to ensure that actions and decisions reflect the organization’s values and objectives, creating cohesion between what is said and what is practiced.
There are different ways to define business success. Profitability or brand relevance in the market can be useful indicators, but results alone reflect a broader, consistent effort in day-to-day operations. This is where organizational culture and strategy intersect.
The Role of Culture
A key factor in achieving business objectives is organizational culture. Francisco Costa, Director of Administration and Finance at the Federal Council of Administration (CFA), explains that culture is a set of “policies, beliefs, principles, behaviors, habits, and values shared by all members of the corporate environment, guiding daily routines and organizational climate.” Culture embodies the strategy behind a company’s positioning.
Odino Marcondes, culture specialist and co-founder of Marcondes Consultoria, references Edgar Schein’s definition: culture is “the way we do things around here.” Whether acknowledged or not, every organization has a culture influencing behavior. When managed strategically, leadership can shape this culture. Otherwise, natural workplace dynamics dictate behavior, which may not align with strategic goals.
This is why, as the saying goes, “culture eats strategy for breakfast.” Marcondes emphasizes that “culture should support strategy,” guiding the company toward its objectives. “If a company’s strategy emphasizes speed in meeting market needs, then speed must be a shared value across the organization,” he explains.
“Culture integrates employees into the company’s purpose, fostering engagement and driving results,” Costa adds. “A strong culture increases employee satisfaction and enhances the efficiency, effectiveness, and impact of strategic actions.”
Connecting Culture and Strategy
Successfully connecting culture and strategy requires balance. Marcondes explains that strategy should generally align with culture. However, if strategic goals are not being met, it is necessary to “look inward” to assess whether the culture supports market expectations. “This isn’t an organizational flaw but a leadership issue — leaders must interpret market needs and respond appropriately. Often, it’s time to evaluate whether these individuals should occupy their positions.”
Mission, Vision, and Values
Aligning strategy with culture requires clarity on the organization’s foundational pillars, often expressed as mission, vision, and values. Costa clarifies:
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Mission – the company’s reason for existence
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Vision – the projected image of the company’s future
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Values – principles that define the ideals of conduct within the organizational culture
Marcondes refers to this as the company’s “philosophical cornerstone.” Establishing these principles is crucial to:
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Motivate and inspire employees
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Guide them in “gray areas” not covered by formal policies
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Keep the company on course, avoiding deviations from its intended path
While the mission, vision, and values may not always be formally documented, the principles are often lived daily. “Many successful companies have thrived without explicitly defining their philosophical cornerstone. In every case I’ve studied, the founder embodied the core values in daily practice.”
For companies without the founder’s daily presence or with decentralized operations, it is essential to clearly define and communicate these pillars so everyone understands expected commitments and behaviors, Marcondes advises.
Source: Revista Conmax