At North Group, we often say culture trumps strategy.

Not long ago, I co-led a retreat for a large company. The gathering brought together 50 leaders from across the organization, including the CEO and executive team. My colleague and I were there to make the case that culture is more important than strategy. In other words, what happens inside your organization, the quality of your relationships, the clarity of your mission, the way people treat one another, will ultimately determine your ability to succeed in the marketplace.

(See our culture assessment tool at the end of this piece.)

We were a little surprised, when some leaders pushed back. Their tone wasn’t confrontational; it came from genuine curiosity. “What do you mean by a healthy culture?” they asked. These were highly accomplished individuals with impressive résumés, yet the idea of defining and prioritizing a healthy culture had not been something they had deeply considered.

By the end of the retreat, however, the tone had shifted. The CEO closed the day with a speech about his commitment to more clearly define the company’s culture, especially its mission and values. He had seen what we wanted everyone in the room to see: culture is not a soft, secondary concern. It is the foundation of long-term success.

Why Culture Matters More Than Strategy

This doesn’t mean strategy is unimportant. It means that even the best strategies will falter if they are not supported by a healthy culture.

A healthy culture is one where:

• People know and live out the mission and values.
• The leadership team is cohesive and aligned.
• Roles, responsibilities, and communication are clear.
• People feel safe to speak up and contribute.
• The environment energizes and engages team members.

When those elements are present, organizations thrive. When they’re absent, even the strongest strategies struggle to gain traction.

The Five Signs

Sometimes the best way to understand a healthy culture is by looking at what happens when it’s missing. Below are five key warning signs that your culture may be unhealthy.

1. Guiding Principles Don’t Shape Behavior

Mission and values statements may be hanging on the wall or featured on your website, but they don’t shape daily decisions. They are words, not ways of life.

2. The Leadership Team Is Not Cohesive

The leadership team doesn’t function as a true team. Meetings are irregular or lack focus. Decisions are unclear. Alignment is missing at the top and it ripples throughout the organization.

3. There Is Little Clarity and Accountability

Roles and structures are vague. Communication is inconsistent. People aren’t sure who owns what, and accountability feels optional.

4. People Don’t Feel Safe to Speak Openly

When people fear repercussions for sharing ideas or concerns, they remain silent. Real conversations happen only in “meetings after the meeting,” eroding trust and slowing progress.

5. People Are Not Energized or Engaged

When team members dread coming to work, it shows. The “Sunday blues” are real. Energy is low, turnover is high, and productivity suffers.

Healthy Cultures Don’t Just Happen

At the end of the retreat, most everyone agreed: culture matters more than strategy. What began as a genuine question, “What do you mean by a healthy culture?” became a conviction. The CEO recognized that without a healthy culture, the company’s future success was at risk.

The same is true for your organization. Culture is not static. It needs regular attention and intentional leadership. We’ve created a simple check-in tool (below) using the five signs to help you assess your organization’s culture. Answer the diagnostic questions honestly. Review your areas for improvement. Then take action.

Healthy cultures don’t just happen. They are built, through clarity, unity, accountability, openness, and engagement. And when they are built, they become the strongest driver of long-term success.

We’ve created a tool to help you assess your organization’s cultural health. Answer a handful of questions and receive a customized report.

Take the Assessment