The Adaptability Culture

The adaptability culture is characterized by strategic focus on the external environ- ment through flexibility and change to meet customer needs. The culture encourages entrepreneurial values, norms, and beliefs that support the capacity of the orga- nization to detect, interpret, and translate signals from the environment into new behaviour responses. This type of organization, however, doesn't just react quickly to environmental changesit actively creates change. Innovation, creativity, and risk taking are valued and rewarded.

An example of the adaptability culture is 3M, a company whose values promote individual initiative and entrepreneurship. All new employees attend a class on risk taking, where they are told to pursue their ideas even if it means defying their supervi- sors. IBM has been shifting to an adaptability culture to support a new strategy that requires flexibility, speed, and innovation. IBM has implemented practices and proce- dures that support teamwork, egalitarianism, and creativity, such as dismantling the 92-year-old executive committee that previously ruled the company and replacing it with three cross-functional and cross-hierarchical teams for strategy, operations, and technology, and a clear external focus.36 Most e-commerce companies, such as eBay, Amazon, and Google, as well as companies in the marketing, electronics, and cosmetics industries, use this type of culture because they must move quickly to satisfy customers.

An example of an adaptability culture is Sandvine, a tech start-up founded in 2001 in the Kitchener-Waterloo region, which provides networking equipment. In 2007, it was named one of Canada's best places to work.37 In 2013, Sandvine continued to be recognized as one of the "Best Workplaces in Canada."38 It is listed on the Toronto and London Stock Exchanges and in 2014 had a market cap of about $426.55 million.39

The Mission Culture

An organization concerned with serving specific customers in the external environ- ment, but without the need for rapid change, is suited to the mission culture. The mis- sion culture is characterized by emphasis on a clear vision of the organization's purpose and on the achievement of goals, such as sales growth, profitability, or market share, to help achieve the purpose. Individual employees may be responsible for a specified level of performance, and the organization promises specified rewards in return. Man- agers shape behaviour by envisioning and communicating a desired future state for the organization. Because the environment is stable, they can translate the vision into measurable goals and evaluate employee performance for meeting them. In some cases, mission cultures reflect a high level of competitiveness and a profit-making orientation.

The Clan Culture

The clan culture has a primary focus on the involvement and participation of the organization's members and on rapidly changing expectations from the external envi- ronment. This culture is similar to the clan form of control described in Chapter 8. More than any other, this culture focuses on the needs of employees as the route to high performance. Involvement and participation that gives sense of responsibility and ownership and, hence, greater commitment to the organization.

In a clan culture, an important value is taking care of employees and making sure they have whatever they need to help them be satisfied as well as productive. Companies in the fashion and retail industries often adopt this culture because it releases the creativity of employees to respond to rapidly changing tastes. Mountain Equipment Co-op is an example of an organization that combines attributes of the clan and mission cultures; for example, it looks for "people who share our passion for wild spaces, outdoor activities, and great gear. If you think a job should be more than a paycheque, check out our current postings."4

The Bureaucratic Culture

The bureaucratic culture has an internal focus and a consistency orientation for a stable environment. This organization has a culture that supports a methodical approach to doing business. Symbols, heroes, and ceremonies support cooperation, tradition, and following established policies and practices as ways to achieve goals. Personal involvement is somewhat lower here, but that is outweighed by a high level of consistency, conformity, and collaboration among members. This organization succeeds by being highly integrated and efficient.

Today, most managers are shifting away from bureaucratic cultures because of a need for greater flexibility. However, one thriving company, Pacific Edge Software, has successfully implemented some elements of a bureaucratic culture, ensuring that all its projects are on time and on budget. The co-founders implanted a culture of order, discipline, and control from the moment they founded the company. The emphasis on order and focus means employees can generally go home by 6:00 p.m. rather than working all night on an important project. The co-founders insist that the company's culture isn't rigid or uptight, just careful. Although sometimes being careful means being slow, so far Pacific Edge has managed to keep pace with the demands of the external environment.

The author of the course text presents Denison and Mishra's four categories of culture based on the organization's strategic focus and the needs of its environment. Research and choose 2 companies to compare and contrast their cultures. Please list both companies. For both companies, answer the following questions.

1. Which of the four categories of culture would you assign to each organization and why?

2. Based on what you learned, which would you prefer to work for and why?

3. Discuss the categories chosen by your peers and challenge them to support their choices.