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The influence of culture on your start-up strategy

June 5, 2025 Starting a Business

Article by Jedd Harris, Chief Strategy Officer at Sourcefin

Strategy without implementation is just wishful thinking – but here’s the secret: successful implementation depends on doing it in harmony with your company’s culture.

You’re on your way to sound start-up strategy implementation. You’ve taken the first steps: one, you’ve defined your strategy, and two, you’ve chosen an implementation framework. Now, the spotlight shifts to your team.

Are they ready to adopt the strategy and commit to making it happen? That’s where culture comes in. Culture is the multiplier of your strategy. If your culture score is less than one, every unit of effort returns less than what you put in. But if your culture is strong – if it acts as a force multiplier – every bit of effort is amplified. Better yet, with the right culture, you’re not multiplying; you’re compounding, and exponential growth is the result.

Let’s set the scene quickly. Your strategy is built on five pillars: Mission, Vision, Goals, Competitive Edge, and an Action Plan. From there, you picked your preferred implementation approach – maybe it’s the clear accountability of MBO, the balanced focus of the Scorecard, or the agile alignment of OKRs. But none of these will stick or move the needle if your culture doesn’t support them.

What is culture, really?

Culture isn’t beanbags, foosball tables or casual Fridays. At its core, culture is simply the distinct way your team does things. It’s how decisions get made, how people interact, how challenges are tackled, and how success is celebrated.

There’s a lesser-known quote by Brian Chesky, co-founder of Airbnb, that sums it up beautifully: “Culture is simply a shared way of doing something with passion.” It’s not just what you do, but how you do it and why you care.

Culture is felt more than it’s written. Walk into any office (or virtual workspace) and you can sense it – is this a place of trust, energy, and collaboration, or a place of fear, confusion, and silos?

And leaders, you’re in control of which culture dominates your working environment.

How culture is cultivated: The founder’s role

Here’s the thing about culture: it will form whether you like it or not. The only question is whether it’s the culture you want.

A start-up’s founder plays a critical role in shaping culture. Think of your start-up as a pond. The quality of the water is your culture. Every organism – every team member, process, interaction – depends on that water to thrive. If the water is clean, the ecosystem flourishes. If it becomes murky or toxic, even the best fish won’t survive for long.

Intentionality is everything. Founders need to actively and consistently maintain that water quality. That means setting clear values, modelling behaviours, and taking urgent, deliberate action when things drift. It’s in the small moments – how you handle mistakes, how you reward effort, how you communicate under pressure – that culture is reinforced.

To cultivate a healthy culture, start with clarity. Know what kind of environment will help your team thrive and deliver on your strategy. Then, live it daily. And actively encourage your team to live it with you.

The Danger of Getting Culture Wrong

Leaving culture to form naturally is like leaving that pond unattended. Slowly but surely, things stagnate, the water begins to stink, organisms die, and the ecosystem fails.

Research backs this up. Studies have shown that poor workplace culture leads to higher employee turnover, lower engagement, and decreased performance. A report by SHRM found that one in five employees left a job due to toxic workplace culture, costing businesses billions annually.

But it’s not just about retention. Bad culture kills strategy execution. Teams in toxic environments are less likely to collaborate, innovate, or take ownership. Morale drops, focus fades, and suddenly, those carefully crafted strategic goals start gathering dust.

Culture and Strategy Implementation: A Tale of Two Start-ups

Imagine two start-ups, both with solid strategies and the same implementation framework.

Start-up A has a culture of openness, accountability, and continuous learning. When they roll out OKRs, the team engages with enthusiasm. They challenge each other, celebrate small wins, and aren’t afraid to flag when things go off-track. The transparency of OKRs fits naturally with how they already work. Over time, their strategic goals turn into real-world results. The business thrives.

Start-up B, on the other hand, has a culture of blame, unclear communication, and fear of failure. When they introduce OKRs, people treat them as a tick-box exercise. No one wants to set ambitious goals because falling short feels risky. There’s little collaboration, and reviews are avoided rather than embraced. The framework exists on paper but fails in practice. Strategy stalls.

Same tools, different outcomes. The difference? Culture.

Rooting Culture in Purpose is the Starting Point

So where do you begin? Your start-up’s culture should flow from its purpose – your “why.”

Start by gathering your team for a workshop to define your values. It’s important to remember that values aren’t just words you drop on your website’s About us page with clichéd descriptions that may or may not make you look good. They’re agreed behaviours clearly understood and committed to by all members of the team that guide how you operate daily.

For example, instead of a generic value like “Integrity,” define what that means in action: “We speak up when something doesn’t feel right, even when it’s hard.” These behavioural definitions ensure that values aren’t abstract but are lived and breathed.

When values are intentionally chosen to align with your purpose and vision, they become a compass. They guide decisions, shape interactions, and, crucially, support your strategy.

How Values Influence Behaviour and Strategy Success

Let’s say one of your core values is “Ownership”. This encourages behaviours like proactively solving problems, taking accountability, and thinking like a founder. In a culture of ownership, when you implement MBO or OKRs, team members naturally take charge of their goals. They don’t wait to be micromanaged. Progress happens faster because people feel responsible for outcomes.

Or consider a value like “Curiosity”. This fosters a culture in which questioning the status quo and seeking better ways of working is encouraged. When paired with a Balanced Scorecard, this mindset drives continuous improvement across customer service, internal processes, and innovation.

On the flip side, without intentionality, unwritten values like “avoid blame” or “keep your head down” may dominate your team. If this is the case, no framework will save you. People will do the minimum, avoid risks, and strategic initiatives will flounder. And when strategic initiatives flounder, your business may drown.

Your values shape behaviours. The aggregation of behaviours determines your culture. And those behaviours either accelerate or hinder your journey toward achieving your vision, supported by your strategy.

Final thought – Culture isn’t a side project

As a leader, cultivating a healthy culture is your primary role. And your team relies on you to get it right. Values determine behaviour. The collection of behaviours determines your culture. The culture determines the environment. The environment determines whether your strategy thrives or dies.

Be intentional. Root your culture in your purpose. Define values as behaviours. Lead by example, consistently – every day in every interaction. And remember, culture is your strategy’s greatest multiplier.

It’s time to target exponential growth.

Sourcefin is a proud Partner of the NSBC.

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