The structural basis of every strategy lies in culture

In the first months of 2024, a multinational financial sector company—a leader in technological innovation—detected a troubling phenomenon: despite multimillion-dollar investments in digital platforms, artificial intelligence, and process restructuring, its return on investment continued to decline quarter after quarter. Perplexed, senior management commissioned an internal analysis. The conclusion was as revealing as it was unsettling: 84% of the market value of SCP 500 companies now resides in intangible assets such as the knowledge, experience, and commitment of their employees (The AI ​​Advantage, 2024).

At that moment, a phrase attributed to Peter Drucker resonated: “Culture eats strategy for breakfast.” More than just a repeated maxim, it became the key to understanding why many transformations fail to take hold.

Can an organization truly evolve if its beliefs, behaviors, and symbols are not aligned with its new strategic direction?

The answer is clear: without a strong, change-oriented organizational culture, any transformation risks being superficial, unsustainable, and eventually reversed. Culture is not a facilitator; it is the ground in which all strategies are sown (or withered).

Why is culture now the main factor for success?

Change initiatives often fail not due to technical flaws, but rather human resistance. According to Deloitte’s Human Capital Trends study (2024), only 3% of organizations consider themselves “extremely effective” at capturing the value created by their employees. This alarming figure reveals a profound gap between strategic design and its cultural integration.

Radical transparency and institutional trust

Organizations that thrive in changing environments share a common trait: an open information infrastructure, where leaders share both progress and challenges. This is demonstrated by the case study by Mankins, M. C. and Litre, P. (2024), in which operational transparency reduced internal barriers to change and increased
collective commitment.

Microcultures as a driver of adaptation

Instead of imposing a single, homogeneous culture, high-performing companies design “cultures within cultures.” According to Deloitte Insights (2024), enabling microcultures aligned with core values ​​but tailored to each business unit or team accelerates innovation, reduces attrition, and strengthens a sense of belonging.

How to design a results-oriented culture based on the employee’s experience?

One of the biggest challenges for managers and HR leaders is answering the question: how do you turn cultural narratives into tangible behaviors?

Rewards as a cultural language

Culture is reinforced through actions, not slogans. Action Deloitte (2024) highlights that continuous recognition systems—such as micro-rewards, peer feedback, and public celebrations—have a direct impact on organizational climate: “Recognition for individuals and teams alike has risen in prominence, practice, and impact.”

Measuring the intangible: cultural KPIs

To cultivate a high-performance culture, it is essential to incorporate cultural indicators alongside financial ones. Tools such as the Net Promoter Employee Score (NPES), voluntary turnover, and the time it takes to adopt new practices allow for precise and proactive monitoring of the cultural landscape.

Consistency in employee experience

The employee experience must reflect the institution’s values ​​at every stage (onboarding, development, recognition, departure). Only in this way can the dissonance between “declared” culture and “lived” culture be eliminated, reinforcing the alignment between purpose and operations.

Leading change from the center of the organization

Leading change doesn’t rest solely with the CEO. It’s largely a function of middle management: those leaders who translate the vision into daily execution.

Investment in intermediate capabilities

According to Deloitte (2025), organizations with strong middle management outperform those with weak management structures by up to 15%. Investing in their training in cultural coaching, emotional intelligence, and strategic communication is not a luxury: it’s an investment in organizational sustainability.

The power of storytelling: cultural storytelling

Stories transform realities. Documenting and sharing success stories within the organization—small “cultural triumphs”—generates emotional and symbolic traction. Storytelling allows you to link strategic purpose with concrete actions, multiplying its adoption.

Cultural governance and accountability

Establishing formal cultural monitoring mechanisms, such as cross-functional committees or engagement dashboards, institutionalizes culture as a recurring theme on the executive agenda. Culture ceases to be “soft” and becomes measurable, reviewable, and governable.

Tools for cultivating culture in practice

A strong organizational culture isn’t something you can just whip up. There are proven tools that allow you to map, strengthen, and evolve your culture strategically:

• Competing Values ​​Framework: allows the identification of cultural tensions between stability and flexibility, or between internal and external focus.

• Organizational Network Analysis (ONA): makes visible the informal networks that define the real culture beyond the organizational charts.

• Balanced Scorecard with a cultural perspective: integrates indicators of work climate, engagement and cultural alignment.

• Models of cultural maturity: they trace the evolution from hierarchical cultures to agile and innovative cultures.

Recent cases support the effectiveness of these tools. Virgin Australia, for example, reactivated its “Virgin Flair” cultural brand to mobilize the team, accelerate change, and revitalize internal engagement following its post-pandemic restructuring (Mankins & C. Litre, 2024). This case demonstrates that when culture is addressed as a strategic priority, the results are not only sustained but amplified.

When culture precedes change

Plato said, “The beginning is the most important part of the work.” In a context where speed and uncertainty are the norm, initiating a transformation without addressing culture is like building on sand.

Culture is the emotional, symbolic, and behavioral foundation upon which everything else is built. For leaders who truly aspire to build resilient, adaptive, and sustainable organizations, cultural work is not an add-on: it is the heart of change.

At InStrategy, we help transform that heart into strategic muscle, using elite methodologies and expert support. Because every transformation that leaves a lasting impact begins from within.

Sources

Action Deloitte. (2024). High-Impact Rewards: Building a culture of always-on recognition . https://action.deloitte.com/insight/4357/high-impact-rewards-building-a-culture-of-always-on-recognition

Deloitte Insights. (2024, February 5). Thriving beyond boundaries: Human performance in a boundaryless world. https://www.deloitte.com/us/en/insights/topics/talent/human-capital- trends/2024/prioritizing-human-performance.html 

Deloitte Insights. (2025). Is there still value in the role of managers? Future of the middle manager. https://www.deloitte.com/us/en/insights/topics/talent/human-capital-trends/2025/future-of-the-middle-manager.html

Mankins, M., C Liter, P. (2024). Transformations That Work. Harvard Business Review. https://hbr.org/2024/05/transformations-that-work

Meyer, E. (2024). Build a Corporate Culture That Works. Harvard Business Review. https://hbr.org/2024/07/build-a-corporate-culture-that-works

The AI ​​Advantage: Revolutionizing Company Culture for Unmatched Business Success. (2024, July). Harvard Business Review. https://hbr.org/sponsored/2024/07/the-ai-advantage-revolutionizing-company-culture-for-unmatched-business-success