If you’ve spent time in leadership circles, you’ve probably heard Peter Drucker’s famous quote: “Culture eats strategy for breakfast.” It’s a bold statement, but it couldn’t be more accurate in my experience leading a nonprofit organization. You can have the most brilliant strategic plan, but your efforts will fail if your organizational culture doesn’t support it.
That said, improving culture is not for the faint of heart. It’s messy and ongoing, and sometimes, it means making tough decisions about the people who are part of your organization. Let me share some lessons I’ve learned about the interplay between culture and strategy, particularly in the nonprofit world.
Lesson 1: Culture Shapes Behavior, Not Policies
Policies and procedures may guide what people should do, but culture dictates their actions. In nonprofits, where resources are often stretched thin, I’ve seen how a supportive, mission-driven culture motivates teams to go above and beyond. Conversely, a toxic culture can derail even the most well-intentioned initiatives.
For example, I once introduced a new strategic initiative to streamline operations and improve client outcomes. On paper, it was perfect. In practice, it stalled because staff felt disconnected from leadership. When we focused on rebuilding trust and fostering open communication, the strategy took hold.
Here’s the kicker: not everyone will come along for the ride when you work to improve culture. Some people prefer the comfort of dysfunction—whether they realize it or not. When those individuals resist or even leave, let them go. Culture change isn’t about keeping everyone happy; it’s about creating an environment where the right people can thrive.
Lesson 2: Not Everyone Will Understand Your Efforts—Do It Anyway
Improving culture often requires investments with little ROI, like company events, team-building activities, or training programs. And not everyone will get it.
I’ve heard it all: “We don’t have time for this,” or “This won’t change anything.” The truth is, some people will never be as invested in improving culture as the leadership team. That’s okay. Cultural change isn’t about universal buy-in but consistent, intentional effort.
While not everyone will understand why you’re doing it, everyone will notice when the culture improves. Morale shifts, collaboration increases, and those strategic goals suddenly feel like they are within reach. Keep at it.
Lesson 3: Culture Drives Retention (and Sometimes, Turnover)
Employee retention is a huge challenge for nonprofits. Pay may not compete with for-profits, but culture can. People stay when they feel valued, supported, and aligned with the mission. Conversely, a poor culture can lead to burnout or turnover during improvement.
I’ve learned to see turnover differently. Yes, it can be painful to lose good people, but sometimes turnover is a sign that the culture is shifting in the right direction. When the culture improves, people who thrive in toxicity often feel out of place. That’s not failure—it’s progress.
Lesson 4: Leaders Set the Tone
As a leader, you’re the gauge for your organization’s culture. Your transparency, empathy, and willingness to address tough issues set the tone for everyone else.
When I first stepped into leadership, I focused on strategy, thinking the plan would solve everything. It didn’t. The culture needed to be aligned, and no amount of planning could change that. I realized that if I wanted a different culture, I had to embody it first- showing the team what it looked like to prioritize values, trust, and collaboration.
Lesson 5: Culture is a Work in Progress
Culture isn’t a destination; it’s a journey. It evolves as the organization grows, new people join, and challenges arise.
At my organization, we’re still a work in progress. There are days when it feels like we’re taking two steps forward and one step back. But I’ve learned that consistency matters more than perfection. Every training, every team-building event, and every honest conversation is a brick in the foundation we’re building.
Practical Takeaways
- Let People Go Who Don’t Align: Not everyone will thrive in a healthy culture. That’s okay. Focus on those who do.
- Stay the Course: Even when people question your efforts, keep investing in culture. The results are worth it.
- Lead By Example: Your actions set the tone for the entire team.
Closing Thoughts
Culture and strategy aren’t opposing forces—they’re two sides of the same coin. But when push comes to shove, culture wins. Improving culture takes time, courage, and patience, but it’s the foundation that will sustain your organization through every challenge.