A survey of 1,188 leaders, commissioned by the Leadership and Governance Collective, found 87 to 92 percent rated culture as a key driver of growth, resilience, and value. However, only 10 to 15 percent reported full alignment between culture and strategy.
Chief Executives Acknowledge Culture–Strategy Gap
Nearly all chief executives see corporate culture as central to business performance, but few say it aligns with their organisation’s strategy.
“This gap is driven not by lack of intent, but by structural constraints, insufficient leadership capability, misaligned policies and underinvestment,” said the collective’s executive director Susanna Lee.
Small Firms and B Corps Lead on Cultural Alignment
The survey found alignment was most common in smaller firms, certified B Corps, founder-led companies, and those following stewardship models.
“Organisations that close this gap… demonstrate that cultural alignment is both achievable and economically beneficial,” Lee said. “For larger, more complex organisations, the challenge is greater but not insurmountable.”
Financial Impact of Cultural Misalignment in M&A
Culture can directly affect business value, particularly in mergers and acquisitions (M&A). “M&A transactions are among the few business activities where culture is implicitly assigned a monetary value,” Lee said.
Between 44 and 59 percent of CEOs said they would not buy a culturally misaligned firm. Of those willing to proceed, most would demand discounts of 5 to 30 percent or more. Only 6 to 9 percent would pay full price regardless of cultural fit.
Organisational Culture as a Driver of Market Value
41 percent of respondents ranked culture as the most important factor in determining firm value for publicly listed companies. Key indicators included employee trust, adaptability, and a willingness to report misconduct.
Lee argued even modest changes can deliver returns: “Even small efforts to improve cultural leadership can benefit organisations.”