Culture is Strategy: What 1,188 CEOs Confirmed
The Leadership and Governance Collective, through Massey University, has released findings from the largest CEO survey ever conducted in Aotearoa New Zealand, drawing on responses from 1,188 leaders across the for-profit, not-for-profit and government sectors (Leadership and Governance Collective, 2025).
The key takeaway is that culture is a strategic asset that directly influences performance, risk and long-term value creation.
More than 87% of CEOs ranked culture among their top three drivers of organisational value. Fewer than 3% said it did not rank in their top ten. Leaders overwhelmingly recognise that culture shapes behaviour, decision-making and accountability across complex organisations.
Culture drives performance
The research tested whether CEOs who prioritise culture lead stronger financial outcomes. Across multiple statistical models, there was a statistically significant link between CEO focus on culture and higher three-year revenue growth (Leadership and Governance Collective, 2025). The result held even when controlling for firm size, profitability, strategy type and CEO characteristics.
Yet despite this recognition, only 10-15% of CEOs report full alignment between culture and strategy. Most leaders acknowledge a gap between intent and execution. The most common reasons are limited leadership capability and insufficient time invested in cultural alignment.
Culture carries a real economic cost
One of the most interesting findings relates to mergers and strategic partnerships. When asked whether they would proceed with a culturally misaligned organisation at the same price, 44-59% of CEOs said they would not proceed at all. Among those willing to proceed, most required a valuation discount, in some cases above 30% (Leadership and Governance Collective, 2025). Only a small minority would transact without adjusting price.
This is culture being explicitly priced into transactions. It is recognised as a material risk factor, not a reputational afterthought. For boards and investors, that draws attention to cultural due diligence.
Incentives, flexibility and governance shape outcomes
The report also explored how culture is reinforced. While most organisations assess behaviour against stated values, culture is most credible when reinforced through promotion and incentives.
In B Corps, 78% of CEOs consider exemplifying organisational values essential for promotion into senior management (Leadership and Governance Collective, 2025). Leadership visibility is also being redefined. Hybrid models are now the norm, and support for fully remote leadership is growing, particularly among B Corps and purpose-led organisations. Culture is increasingly reinforced through clarity of values and intentional engagement, rather than physical proximity alone.
At the same time, many organisations report barriers to investing sufficiently in culture, including competing priorities, financial constraints and limited time. Reporting to executive teams is common. Reporting to boards is less consistent.
Culture needs governance oversight, leadership capability and system-level reinforcement to translate values into consistent decisions, disciplined execution and long-term value creation.
References
Leadership and Governance Collective (2025). Aligning Culture with Strategy: Insights from 1,188 Aotearoa NZ CEOs. https://www.leadershipandgovernancecollective.nz
