Why Company Culture Matters More Than Strategy

It is very tempting for hotel businesses to place too much emphasis on a strategy approach while inadvertently underestimating the power of corporate culture.

I would argue that corporate culture is, in fact, more important than strategy itself. A company’s culture is about the psychology, actions and beliefs of a group of people.

I believe there are two ways to understand the kind of culture that drives a business forward or holds it back:

The other way to understand corporate culture is when you are told that it is "the way we do things around here".

The most important thing about corporate culture is that, alongside people, it is the only thing that makes a difference to the competitiveness of a hotel, or any type of business. Anyone can copy your strategy, but no one can copy your culture. So why do we not give it the importance it deserves?

The best companies are those with their own culture that has grown to become bigger and stronger than any individual leading it. It becomes what brings everyone together, regardless of the department they work in. If your people are committed to the company, the strategy is more likely to be embraced by everyone and everyone will focus on it.

We hire for attitude and train for skills. It is more beneficial to hire someone with the right mindset who fits your hotel’s culture than someone with strong skills and extensive experience but an unsuitable mindset.

Corporate culture has to originate somewhere, as it does not develop on its own. If the ownership or board has been unable to create and communicate that corporate culture, it is the general manager’s responsibility to identify a cultural vision for the hotel, live and breathe it, and then help guide the rest of the team in the right direction. Culture comes directly from the behaviour of leaders, and it is their duty to engage and inspire the entire organisation.

Corporate culture is based on having a clear set of values, strong leadership, and a sense of transparency and honesty between the hotel and its public. These factors are what will differentiate your hotel in times of austerity and increased competition.

Of course, strategy is important, but it must be accompanied by a strong culture if lasting success is to be achieved. To be truly competitive, a hotel and its leader must inspire every employee to earn a place in the public’s hearts. By far the best way to achieve this is through corporate culture.