Musings on Organization Culture

In the mid 1970's discussion about organizational culture was a hot topic in America. I remember meeting professor Patrick Williams from one of my three alma maters -- he introduced me to the topic. Pat and I went on to become close friends and dear colleagues. Pat had done his Ph.D. in cultural norms at UCLA under the tutelage of Robert Tannenbaum -- a pioneer in the field of organization development -- and he was a new faculty member at San Jose State University.

Although the subject of culture was interesting stuff to me, it was also pretty abstract and difficult to operationalize. Some models were based on anthropology and others on sociology. Most of my clients, however, were trained in neither.

In the early 1980's after encouragement from my early clients, I undertook the difficult task to articulate the subject in more down-to-earth terms. I searched for a metaphor or analogy to help me accomplish this task.

In the English language, there are three "dog" analogies that I thought could help me. I realize that these analogies have limitations when used in other national cultures. I found later that indeed these analogies proved to hit the mark. Here is why.

As a consultant and executive, over a work span of 45 years, I came to classify my clients' corporate culture as falling into one of three descriptors. Each of the descriptors defines a particular level of psychological existence and modus operandi.

The UNDERDOG culture is the bottom level of existence. At this level, the organization is in a survival mode. Its time horizon is quite short and its most pressing preoccupation is a positive cashflow -- meeting payroll, paying its bills, etc. The underdog organization lives off the scraps that fall off the table of the more prosperous organizations. The self-image is fragile and easily punctured. Most start-ups spend significant time in this space. I am told that ninenty-five percent of start-ups fail during their first year of operation, and another ninenty percent of the surviving five percent fail the second year. Sobering findings! The aspiration of the underdog organization is to live to fight another day, and nirvana is to climb up to the next level of existence.

The TOP DOG culture is the intermediate level of existence. At this level, the organization gains a strong market presence. Its time horizon gets longer. The major emphasis is on expansion in both market share and profitability. The self image is stronger and prone to arrogance. This organization's main goal is to fight off other big dogs. A common belief is that only the paranoid survive. As success breeds success, top managers start to believe their own press. They believe that the success comes from their unique competence and not necessarily as a result of a friendly market or a superior technology.

The LUCKY DOG culture is the ultimate level of existence. Here, the organization settles down to what they do best using responsible behaviors and balanced decision making. The time horizon is long term. The needs of the stakeholders are taken more seriously as the organization strives to find its spot in its legacy quest. People are seen as true assets, and not as tools of production. Acquisitions and mergers are approached more prudently, and not for the sake of size. Mythology is used to reinforce positive role models -- from founders to current leaders. However, this level is not cast in concrete. Many events will challenge the status quo. Only the competent will survive.

In the mid 1970's as I was working on my doctoral dissertation I came in contact with the work of professor Clare W. Graves from Union College. He had published a paper entitled "Levels of Existence: An Open Systems Theory of Values" in the November 1970 issue of the Journal of Humanistic Psychology. Dr. Graves' work had a profound impact on my thinking and personal development. Coupled with the work of Abraham Maslow on the human hierarchy of needs, I gained a clearer insight into human behavior.

Maslow teaches us that the human being moves up in the hierarchy of needs as quickly and when lower level needs are satisfied. Organizations often mirror the human condition.

Underdog cultures cannot rise up to the next level until their biological, security and social needs are met. The top dog cultures will not move up until their ego needs are met. Only then can they move to the highest level -- where self-actualization is possible. When survival is threatened, the lucky dog organization collapses down to the underdog level. We have seen this phenomenon happen at Apple Computer after Steve Jobs firing. We have also witnessed this phenomenon after the installation of Carly Fiorina at Hewlett packard. We have seen this phenomenon in action at IBM in the late 1980's. I mention these three organizations because they were able to renew themselves and recoup their grandeur later.

Graves teaches us that individuals cannot rise up to the next level until their reactive, tribalistic, and ego-centric needs are met. And only after their manipulative needs are met can they move up to the next level -- socio-centric, and from there to the existential level which is the pinnacle of our search for meaning. As in the Maslow theory, individuals fall off the hierarchy as their bottom level needs are threatened. For example, underdog organizations cannot phathom the manipulative level until their survival and ego needs are met, and top dog organizations cannot become truly socio-centric and existential until their manipulative needs are met.

Tell-tales of where your organization mioght be at?

-- Personality cult -- chances are the organization is in the manipulative stage

-- Benevolent dictator -- ditto

-- Top executive layer populated by yes-men -- ditto

-- Chronic cashflow problems -- surely a sign of an underdog

-- Rampant politics -- top dog primarily, politics exist in all cultures

-- Long term view -- chances are the organization is in the lucky stage

-- Participative management style -- lucky dog?

-- Rats abandoning ship -- chances are the organization is dropping down in its hierarchy of needs.

The collapse of many top dog organization can be scandalous. CEOs and CFOs escorted to jail for manipulating the books. CEOs jailed for treating company funds as their own. CEOs, CFOs and CHROs fined millions of dollars for manipulating stock options. Enron, Worldcom, Tyco, Broadcom are examples of the excesses of the top dog culture.

Reflect on these snippets, add your own. We all long to work in a lucky dog organization, few of us will have that privilege. When we do, savor it, enjoy it because it might not last.

Have fun on the learning curve!