The phrase "culture eats strategy for breakfast" is often attributed to the management guru Peter Drucker, and it suggests that an organization's culture is more powerful than its strategy in determining its success or failure. However, the idea can also be applied to organizational structure.
An organization's culture can have a greater influence on how the organization operates than its formal structure. This means that, even if an organization has a well-designed structure in place, if its culture is not aligned with that structure, it may not function effectively.
For example, if an organization has a culture of resistance to change, it may be difficult to implement a new structure or strategy, even if it is well-designed and has clear benefits. Or let's say an organization has a hierarchical structure with clear lines of authority and decision-making power. However, if the culture of the organization is one of fear and lack of trust, employees may not feel comfortable speaking up or challenging authority, even when it is necessary for the organization's success. In this case, the formal structure is undermined by the dominant culture of the organization, and in fact could lead to more rigidity and bureaucracy thereby stifling innovation and adaptability.
On the other hand, if an organization has a flat or decentralized structure that encourages collaboration and open communication, but its culture is one of competition and individualism, employees may not be motivated to work together or share information. Again, the formal structure is undermined by the culture of the organization, and it becomes difficult to successfully implement a structure that requires collaboration and collective decision-making. Similarly, if an organization has a culture of secrecy and lack of transparency, it may be difficult to implement a more open and collaborative structure, even if it is intended to promote better communication and teamwork.
In some situations, an organization’s structure can also shape and influence the existing culture. For example, an organization focused on stability and minimizing risk might implement a hierarchical structure with rigid rules and procedures, which in turn could make it difficult to foster a culture of innovation and creativity, as employees may feel constrained by the structure.
Ultimately, both culture and structure are important for organizations, and they can both have a powerful impact on behavior and outcomes. A strong and positive culture can create a sense of shared purpose and drive innovation, while a toxic or dysfunctional culture can undermine even the best organizational structure. Therefore, while organizational structure is important, it is not sufficient on its own to create a successful organization. A strong and positive culture is equally important, and in some cases, it may even be more powerful than the formal structure in shaping an organization's success.
In other words, the culture of an organization can shape how people behave and make decisions within that organization, and it can override the formal structure if there is a mismatch. This is why it is important for organizations to not only design a formal structure that works well on paper, but also to cultivate a positive culture that supports that structure and helps it function effectively. And while culture may be more difficult to change than structure, it is possible to modify and shape both to better align with an organization's goals and values.