Successful institutions almost always develop strong cultures that reinforce those elements that make the institution great. They reflect the environment from which they emerged. When that environment shifts,it is very hard for the culture to change. In fact, it becomes an enormous impediment to the institution’s ability to adapt.

This is doubly true when a company is the creation of a visionary leader. A company’s initial culture is usually determined by its founder’s mindset—that person’s values, beliefs, preferences, and also idiosyncrasies. It’s been said that every institution is nothing but the extended shadow of one person.

Culture isn’t just one aspect of the game - it is the game,” Gerstner says. “In the end, an organization is nothing more than the collective capacity of its people to create value. Vision, strategy, marketing, financial management - any management system, in fact - can set you on the right path and can carry you for a while. But no enterprise - whether in business, government, education, health care, or any area of human endeavor - will succeed over the long haul if those elements aren’t parts of its DNA.”

Chris Lofgren, chief executive of Schneider National, the large transportation and logistics company believes that “culture is a foundation upon which you build your long-term strategy. If you build a strategy that isn’t consistent with the culture, it isn’t going to work.

As Lou Gerstner says, “Changing the attitude and behavior of hundreds of thousands of people is very, very hard to accomplish. You can’t simply give a couple of speeches or write a new credo for the company and declare that the new culture has taken hold. You can’t mandate it, can’t engineer it.

“What you can do is create the conditions for transformation. You can provide incentives. You can define the marketplace realities and goals. But at some point you have to trust. In fact, in the end, management doesn’t change culture. Management invites the workforce itself to change the culture.

Creating the conditions for a cultural transformation takes all the tools at your disposal. You can’t, for example, command an internally focused culture to magically metamorphose into one that canonizes its customers. You have to nudge, suggest, cajole, and ultimately convince people that the new environment you’re proposing really is the best one for the business and, perhaps more important, for themselves. That takes time - and a good sense of timing.

Some leaders look back on their first hundred days and say, “If I could do it again, I wouldn’t hesitate so long to make those key people changes or that strategic move.” Others were glad they exercised restraint. In most cases the timing are dependent on the situation.

For two out of three CEOs in our database, performance was lower in their years six to ten than it was in years one to five. Some gave up their gains of the first five years altogether. Results may not actually dive into negative territory, but if they do, they vacillate up and down around a mean, which only reinforces the sense that one can let up on the gas.

The danger is exacerbated when boards also become less energetic in pushing for vigorous changes in strategy or operations. As director Ann Hanley shared, “It’s easy to get into incremental mode.” A CEOs internal team may resist a continuous quick pace of change.