Why Organizational Culture Eats Strategy for Breakfast

For any organization to undergo critical reform, the success of these changes depends not only on visionary strategies, but also on addressing the cultural dynamics within organizations. In this opinion piece, Liana Ghukasyan explores how organizational culture can either support or sabotage new initiatives. Drawing on examples from corporate and humanitarian leadership, this piece highlights the subtle ways that staff may resist change and how inclusive leadership is essential to overcoming these challenges.

It is a familiar scenario: a new leader steps into a senior role with a bold vision and ambitious plans, yet a year or two down the line, the transformative change promised seems elusive. The leader may be well-qualified, equipped with innovative strategies and the support of upper management, but the needle hardly moves. Why? The answer often lies in a fundamental truth of organizational dynamics: culture eats strategy for breakfast.

Culture represents the deeply ingrained beliefs, behaviours, and unwritten rules that guide how people within an organization interact and make decisions. It is invisible yet powerful, shaping the organization’s capacity to embrace or resist change. Leaders who fail to recognize and respect the nuances of an existing culture often struggle to implement their strategies, no matter how sound or necessary those strategies may be.

Tribal Habits and Respect for Leaders

To understand the role culture plays in shaping modern organizations, it is useful to reflect on how societies, particularly in tribal structures, historically functioned. In many tribes, respect for leadership was a key pillar that ensured the smooth functioning of the group. Tribal leaders were not only expected to provide direction but were often chosen based on their ability to understand and honour the tribe’s deeply rooted customs, norms, and traditions. They did not impose change arbitrarily but acted as custodians of the collective will, balancing tradition with the need for progress.

One notable example is the Maasai tribe in East Africa. The Maasai have a long-standing tradition of leadership by elders and community consensus. Leaders, known as Laibon, are expected to embody the tribe’s values, understanding the needs and customs of their people before making decisions. A leader who did not respect these traditions would quickly lose influence. The Maasai people honour their cultural continuity, and leadership transitions are carefully managed, with leaders being mentored by elders who ensure they understand and respect the cultural framework of the tribe.

In these settings, the survival and prosperity of the tribe depended on a leader’s ability to earn the trust and respect of the members. A new leader who ignored or undermined the tribe’s norms—without first establishing trust—would quickly face resistance, even rebellion. Tribal culture shaped a shared sense of belonging, where loyalty to the group was paramount, and any disruption to that balance was met with caution.

Modern organizations operate similarly. Employees, like tribal members, seek continuity, stability, and respect for the unwritten rules that define “how things are done around here.” New leaders who fail to appreciate this parallel risk alienating their teams.

The Pitfall of Underestimating Organizational Culture

Many leaders—especially those new to an organization—fall into the trap of assuming that a well-crafted strategy will naturally be adopted by their teams. They spend their early months charting bold new directions, envisioning a transformed future without first taking the time to understand the organization’s internal culture. This oversight is critical because strategies, no matter how meticulously planned, are executed by people, and people operate within the parameters of their shared culture.

New leaders often find the organization’s cultures, built over years or decades, has an inertia that resists rapid change. Routines, power structures, and informal networks can become roadblocks. Employees may cling to familiarly ways of working, especially if they feel excluded from the decision-making process or if the new strategy threatens their sense of stability. When this happens, the staff is not just rejecting the new strategy- they are defending their cultural norms.  

Just as tribal leaders respected generational knowledge and collective wisdom, successful organizational leaders must understand that their teams carry the weight of institutional memory. Employees have developed norms over time, often based on years of experience and shared values. A new leader who rushes to dismantle these norms in pursuit of immediate change risks igniting a clash with the very people they hope to lead.

While cultures are important for maintaining continuity and upholding traditions, they can also become significant barriers to change and innovation if they grow rigid. Organizational cultures that overly prioritize established norms can stifle creativity, discourage fresh perspectives, and prevent the adaptation needed to meet new challenges. Leaders navigating such environments face an uphill battle, as they must not only introduce new strategies but also break through the walls of a culture that may view change as a threat. It is in these instances that a strong and flexible approach is required- one that respects the culture but is not afraid to challenge it when necessary for the organization’s growth.

Resistance to New Leadership Styles and the Cost of Turnover

Every leader brings a unique approach to decision-making, communication and accountability. But if a new leader tries to impose their leadership style without first understanding the existing culture, it often leads to friction. Long-standing employees may resist, consciously or unconsciously, any attempt to upend their work habits or change the status quo.

Their resistance can manifest in passive ways, like slow adoption of new processes or a decline in morale. It can also take more active forms, such as undermining initiatives or fostering division within teams. Leaders who fail to navigate these cultural dynamics may find themselves stuck, unable to generate the momentum needed to drive their vision forward. This type of resistance is described as ‘everyday resistance’ by James C. Scott. Everyday resistance is more difficult to detect, as it flies under the radar, yet cumulatively, it can significantly delay or sabotage a leader’s vision.

A common result of staff resistance to new leadership is the replacement of people who fail to align with the new direction. While this may seem like a quick fix to rid the organization of inertia, it often leads to a much larger problem - the loss of institutional memory. When long-serving staff members are replaced by newcomers, a wealth of historical knowledge, experience, and context is lost. This can delay the implementation of a new strategy as incoming staff members need time to adjust to the organization’s culture and priorities.

The result is a double-edged sword: not only is there a loss of valuable internal insight, but the process of onboarding new people, integrating them into the organization, and aligning them with the leader’s vision can be slow and fraught with complications. Moreover, it disrupts the flow of work and delays the very change that leaders sought to implement quickly.

So, what can leaders do to ensure their strategies do not get swallowed by the culture they inherit?

1. A Shift from ‘My Chair, My Rules’ Approach to Inclusive Leadership

Too often, leaders fall into the trap of ‘catherda mea, regulae meae’ (‘my chair, my rules’ from Latin) an approach that can be traced back to rigid leadership norms in places like ancient Rome, where authority was absolute. However, in today’s complex organizational environments, this approach is counterproductive. Leaders should move away from this hierarchical mindset and adopt a more inclusive style of leadership.

An inclusive leader prioritizes understanding what motivates their people and seeks to create a sense of ownership in the vision they are implementing. This does not mean abandoning the strategic goals but rather adapting the leadership style to encourage staff buy-in. When people feel understood and valued, they are more likely to rally behind new initiatives. Instead of feeling like they are being forced to adapt, employees become partners in driving change.

Satya Nadella at Microsoft provides an excellent example of this approach. When Nadella took over as CEO, he did not immediately overhaul the company’s culture. Instead, he spent significant time understanding the inner workings of the organization and focused on shifting mindsets toward a culture of collaboration and innovation. By taking the time to listen and gain buy-in, he not only avoided a mass exodus of employees but managed to turn Microsoft into one of the world’s most valuable companies.

2. Cultivating Trust

Another crucial factor is building trust. Leaders who prioritize understanding the “tribal culture” of their organization—listening to concerns, respecting traditions, and involving employees in decision-making—are far more likely to gain the trust and loyalty of their teams. When employees feel a sense of ownership in the changes being introduced, they are more likely to adjust to new leadership styles and align themselves with new strategies.

Indra Nooyi, former CEO PepsiCo, faced significant resistance when shifting PepsiCo’s focus toward healthier products. Rather than replace staff who opposed the changes, Nooyi worked hard to communicate her vision, listening to employees’ concerns and building a shared understanding of why the change was necessary. This strategy not only retained talent but helped PepsiCo successfully transition into new product lines with the full backing of its workforce.

3. Adapting the Vision to Fit the Culture

Finally, leaders must be flexible enough to adapt their vision to the realities of the culture they have inherited. It is not about compromising on the big picture, but about finding ways to align strategic goals with cultural strengths. Rather than imposing a top-down change, successful leaders work within the organization’s cultural framework to introduce shifts that are gradual, yet impactful.

This approach mirrors how Jacinda Ardern led New Zealand during times of crisis. Known for her empathy and focus on inclusivity, she demonstrated that leadership is not about imposing one’s will but about guiding people through difficult times by building trust, understanding their concerns, and creating a sense of shared purpose. Her ability to communicate with and motivate her people was central to her success in enacting transformative policies while maintaining the loyalty and trust of New Zealanders.

Her and other examples above show that sustainable change is a two-way process. Culture may eat strategy for breakfast, but those leaders who take the time to listen, adapt, and create a shared vision with their people can turn culture into their greatest ally.

Liana Ghukasyan is Special Advisor to IFRC President, former Deputy Permanent Observer to the UN in New York.

Photo by Una Laurencic