What Does Its Culture Say About Your Company?

     For a coherent discussion of culture to take place, it is important to define the term in its intended context.  Social psychologist Goodwin Watson referred to ‘culture’ as “the total way of life characteristic of a somewhat homogeneous society of human beings,” differentiating its use in social science from the vernacular “refinement of taste in intellectual and aesthetic realms.”
     Watson also quotes anthropologist Ralph Linton’s definition of ‘culture’ as “the configuration of learned behavior whose component elements are shared and transmitted by the members of a particular society.”
     Key components of each definition will help us translate the concept of culture from a discussion of at-large society to one of a corporate environment.

     Corporate culture is tremendously important; it heavily influences all interactions with the business and its representatives.  Therefore, before detailing how to assess a company’s culture, we should explore why you may want to undertake a detailed analysis.  The reasons to do so will depend on your perspective – “on the inside” (internal) or “outside, looking in” (external).
            A party internal to the company (manager, director, etc.) may want to investigate:

• Systemic productivity or quality issues
• Sinking morale or increasing turnover (attrition)
• Financial reporting inconsistencies or spending habits (appropriate expenditures on business activities)
• Long-term employment or promotion prospects (“stay-go” decision)
• Customer relationships
• Various aspects of operations, dependent on specific circumstances.

External parties may want to investigate the company regarding:

• Credit-worthiness (financial stability)
• Investment opportunities
• Collaboration potential (joint venture, co-promotion, affiliate marketing, event or group sponsorship, etc.)
• Legal and regulatory missteps (isolated incident vs. pattern of behavior)
• Employment opportunities
• Compatibility with community standards or initiatives
• And so on…

 
     A composite of the Watson and Linton definitions of culture, quoted in the opening, will be used to derive a functional definition of ‘corporate culture’ for purposes of this analysis.  Key components of each definition and “translations” that aid their application to a company’s assessment are given below.
From Watson’s definition:

• “total way of life” – what we say we do, what we actually do, and how those compare
• “somewhat homogeneous” – in general, but not total, agreement on objectives and strategies
• “human beings” – when AI rules the world, this discussion will likely be moot.

From Linton’s definition:

• “learned behavior” – cultural norms that are internalized
• “shared and transmitted by members” – behavior that is/is not acceptable is reinforced more by example than by prescription or proscription (written or verbal declarations).

 
     To formulate the analysis, we will use the framework created by Clark Wissler, another anthropologist quoted by Watson.  Wissler outlined “nine headings under which the facts of culture may be compiled.”  Presented below, under Wissler’s headings and subheadings, is a series of questions to ask about the company of interest in order to translate the terminology into terms more relevant to the context of corporate culture.
     As you answer these questions, an image of the company will begin to form.  The purpose of this presentation is not to suggest how you should feel about the answers to these questions; it is up to you to decide what is good or bad, right or wrong about what you discover during this process.

Corporate Culture in Wissler’s Framework
1) Speech

• Do managers/executives speak in complex terms (“big words”), deliberately exposing a contrast (real or perceived) in level of sophistication or education between themselves and subordinates?
• Do managers/executives speak in common terms that are understood by everyone (financial, productivity, or quality metrics, for example)?

2) Material traits
     a) Food habits

• Do managers/executives have frequent catered “meetings?”
• Do employees attend catered meeting?  Are employees provided snacks, drinks, etc. outside of these meetings?  If so, are they of the same quality as those provided to managers/executives?
• Is a refrigerator, kitchenette, or café provided, offering employees healthy dietary choices?  Do these offerings support wellness initiatives?

     b) Shelter

• Does the facility provide a safe and comfortable working environment (controlled heat and humidity, no safety concerns or leaky roof)?
• Is a bus-stop or picnic shelter available to employees?
• For outdoor work, is there escape from summer sun or winter cold and wind?

     c) Transportation and travel

• Are employees required to travel, even if they would rather not?  Is it a perk for those that like to travel?  Is travel productive or necessary?
• Are managers/executives/salespersons provided with company cars?  Are company cars necessary or appropriate for the roles and responsibilities of recipients?

     d) Utensils, tools, etc.

• Are the tools necessary to perform required tasks provided?  Are they the best quality/most appropriate/most efficient available?

     e) Weapons

• Does the company prohibit defensive weapons on its property (pepper spray/mace, taser, firearm, etc.)?
  
• Are weapons ever-present (i.e. armed guards)?
  

     f) Dress

• Is there a formal, enforced dress code?  Is it appropriate to the roles and responsibilities of all subject to it?

     g) Occupations and industries

• Is the company diversified such that employees perceive the availability of growth opportunities?
• Is experience gained within the company applicable to other roles, internal or external?

3) Art

• Is the company’s branding (logo, packaging, advertising, etc.) attractive and aligned with the company’s mission?
• Is the appearance of the office conducive to creativity and productivity?  Is the appearance of the lobby and exterior aligned with the company’s desired public image?  Is it overplayed (extravagant, ostentatious, or tacky)?

4) Mythology and scientific knowledge

• Mythology:  Is the company’s stature (public image, stock price, etc.) based on concrete measurables or dogma?
• Scientific knowledge:  Is the company a technology leader (patent holdings and applications, R&D budget, first to market with innovative features)?

5) Religious practices

• Not to be taken literally, but metaphorically.

     a) Ritualistic forms

• Is it expected that policies, procedures, requirements, restrictions, etc. will be “taken on faith” or are they periodically reviewed and justified?
• Is open questioning of decisions encouraged or discouraged?  How are employees’ concerns addressed?

     b) Treatment of the sick

• Is time off for recovery generously granted?
• Are you expected to die at your workstation?

     c) Treatment of the dead

• Are you still expected to show up for work?
• Is respect and gratitude for their contributions shown to the family of a deceased employee?

6) Family and social systems

• Does the company’s management refer to employees as “family?”  If so, is it genuine sentiment, signifying unity and cohesiveness, or an artificial attempt to motivate employees?
• Does the company operate according to its social structure or its formal reporting structure (e.g. hierarchical)?

     a) The forms of marriage

• Does the company engage in cooperative development agreements, joint ventures or supply agreements with other companies?
• Does the company pursue mergers and acquisitions as a growth strategy?

     b) Methods of reckoning relationships

• I’ve got nothin’.  Wissler’s meaning is unclear.

     c) Inheritance

• Has the company developed adequate succession plans to ensure its longevity?

     d) Social control

• Who wields influence over decisions or decision-makers out of proportion with their position in the company?
• Who do employees go to for information or guidance, irrespective of position or authority?

     e) Sports and games

• What activities do significant numbers of employees participate in for recreation that also tend to strengthen bonds and improve teamwork among them?

7) Property
     a) Real and personal

• What capital assets (real estate, buildings and other structures, equipment, etc.) does the company own?
• What intellectual property does the company possess?  This may include collective or aggregate know-how of employees, including process parameters and instructions, “tricks of the trade,” “rules of thumb,” etc., in addition to patents, trademarks, trade secrets, design specifications, etc.

     b) Standards of value and exchange

• How are products and services positioned in the market (bargain, competitive, or premium pricing)?

     c) Trade

• Are fair and equitable terms given to suppliers and customers?
• Are suppliers paid promptly per agreement?
• Are collection efforts reasonable, not injurious to customers?

8) Government
     a) Political forms

• What is the company’s legal structure (partnership, corporation, LLC, etc.)?
• Are decisions made openly to achieve shared objectives?
• Are managerial actions inexplicable?  Does there appear to be hidden agendas influencing important decisions?

     b) Judicial and legal procedures

• Is the company operated legally and ethically?  Are there suspicions surrounding the company or any of its officers?
• Are conflicts resolved fairly, with respect for all parties and their positions?
• Do the company’s managers or directors seek input from knowledgeable individuals before acting as the final authority in a matter?
• Are employees given the opportunity to defend themselves against accusations?  Are performance levels or policy violations verified before punitive action is taken?

9) War

• What is it good for?
• Is the company a DoD (Department of Defense) contractor?  If not, this should not be taken literally!
• Absolutely nothing.
• Is the company in a highly competitive industry or market?  How is it performing relative to competitors?
• Is the company an aggressive marketer?  Is the company an aggressive competitor in other ways (seeking regulatory advantages, acquiring competitors, etc.)?
• Say it again!

 
     The framework, and the questions within it, can be expanded beyond its current presentation or modified to best suit your purposes.  A framework is useful only if it is easily understood by the user and applicable to the situation at hand.  Identifying a problem is the first step toward a solution; aiding problem identification and providing decision support are the goals of the framework presentation. 
Watson also discusses subcultures of society that may serve to further elucidate the cultural dynamics of businesses.  Though the discussions of subcultures are, again, couched in the terminology of society at large, some are directly applicable to corporate culture, while others have relevant analogs.  These subcultures will, however, have to wait for a future installment of “The Third Degree” to be revealed.
As always, feel free to reach out to JayWink for further discussion or guidance.
 
References
[Link]  Watson, Goodwin.  Social Psychology:  Issues and Insights; J.B. Lippincott Company, 1966.
[Link]  Linton, Ralph.  The Cultural Background of Personality; Appleton-Century, 1945.
[Link]  Wissler, Clark.  Man and Culture; Crowell, 1923.
 
Jody W. Phelps, MSc, PMP®, MBA
Principal Consultant
JayWink Solutions, LLC
[email protected]