By Drew Soule
Over the course of my career in human resources, one lesson has become abundantly clear: strategy alone cannot carry a company to long-term success. While plans, KPIs, and market analyses are important, the true differentiator in today’s business world is culture. A strong, values-driven culture not only shapes how employees behave and collaborate, but it also drives engagement, innovation, and ultimately, financial performance.
Understanding the Power of Culture
When I first entered HR, I often saw companies placing tremendous emphasis on strategies—new products, expansion plans, and operational efficiency. But what I noticed over time was that even the most brilliant strategies failed if the company culture was weak. Culture sets the tone for how work gets done, how people interact, and how challenges are met.
In practical terms, culture is the shared set of values, behaviors, and practices that define an organization. It influences decision-making at every level and creates a framework for accountability. Companies with strong cultures are more resilient, adaptive, and capable of sustaining competitive advantage.
Values First, Strategy Second
One of the most important shifts I’ve seen in HR leadership is the move from purely strategic planning to values-driven decision-making. When a company’s values are clear, they guide not only policies and procedures but also everyday interactions. Employees know what the organization stands for, what is expected of them, and how to prioritize their efforts.
Values-driven culture does not replace strategy; it enhances it. Strategies may guide what a company does, but culture determines how those strategies are executed. For example, two companies might launch similar products, but the company with a culture of collaboration, integrity, and innovation will likely achieve stronger results because employees are aligned, motivated, and empowered to act.
Engagement and Retention Through Culture
One of the clearest benefits of a strong culture is employee engagement. People want to work where they feel valued, respected, and connected to a greater purpose. When employees understand and embrace company values, engagement rises, productivity improves, and retention increases.
I’ve seen firsthand how companies with a strong culture experience lower turnover, higher morale, and more consistent performance. Employees become advocates, contributing to a positive reputation externally and driving growth internally. On the flip side, companies that focus solely on strategy without cultivating culture often struggle with disengagement, absenteeism, and high turnover—problems that no strategic plan can solve alone.
Culture as an Innovation Engine
Culture also fuels innovation. In environments where employees feel safe to share ideas, take calculated risks, and challenge the status quo, innovation flourishes. Values such as curiosity, collaboration, and continuous learning create a foundation for teams to experiment, iterate, and improve.
In my experience, organizations that prioritize culture over short-term gains consistently outperform their peers over time. They are better able to adapt to change, seize opportunities, and recover from setbacks—all because their people are aligned, motivated, and engaged.
Leading by Example
For culture to be a true competitive advantage, leadership must embody the values they expect from employees. Culture starts at the top, and behaviors demonstrated by executives and managers send powerful signals throughout the organization.
I’ve often advised leaders to ask themselves: “Are we walking the talk?” Employees quickly notice when there is a disconnect between stated values and actual behavior. Authentic leadership—where leaders consistently demonstrate the values of the organization—is essential for cultivating trust and reinforcing a strong culture.
Measuring and Nurturing Culture
While culture may seem intangible, it can and should be measured. Employee engagement surveys, feedback sessions, and retention metrics all provide insight into the health of an organization’s culture. Tracking these indicators allows HR and leadership to identify areas for improvement, celebrate successes, and make informed decisions that align with organizational values.
Nurturing culture is an ongoing process. It requires intentional communication, recognition, and reinforcement of values in hiring, promotions, and daily operations. Organizations that continuously invest in their culture create a self-reinforcing cycle where employees thrive, performance improves, and competitive advantage grows.
The Bottom Line
In today’s fast-moving business environment, strategy is necessary but not sufficient. Companies that truly outperform are those that prioritize culture as much as, if not more than, strategy. A values-driven culture engages employees, fosters innovation, strengthens retention, and ultimately drives long-term business success.
I’ve seen the difference it makes: when employees are aligned around shared values, work with purpose, and trust leadership, results follow naturally. Culture is not just a soft HR concept; it is a measurable, strategic asset that provides sustainable competitive advantage.
As HR professionals, leaders, and business strategists, we have a responsibility to cultivate and protect culture. By putting values at the center of everything we do, we create organizations that are not only successful but also resilient, innovative, and inspiring places to work.