The effectiveness of an organization is determined by its ability to balance the integration of its people, processes, and technologies. In recent years, businesses are realizing that investments in business processes and technologies are only as good as the people who use them. This has caused my business to assess and align their cultures with the new ways of doing business and the processes and tools associated with it.
Endurant’s culture assessment is based on the Competing Values Framework. It identifies four dominant culture types. They are summarized in the following diagram. Some terms and definitions have been changed to reflect Endurant’s experience.
Hierarchy – refers to top-down organizations where decisions are made at the top with levels of management to ensure consistent performance measured by standards. Examples are military and government organizations.
Clan – is often described as a family style where working collaboratively in teams, participation, and consensus decision making prevails. Examples are traditional Japanese companies.
Adhocracy – epitomizes creativity and innovation in being the leader in responding to the early adaptors of new products and services. Being the market leader is the essence of their existence. Examples are medical device manufacturers, high tech companies, and Google.
Market Driven – are focused on customer analytics and responding to defined needs of the customer. These are fast followers who achieve success by creating products and services that are esteemed for meeting the needs of their customers.
In examining the chart, note that the horizontal axis measures internal control and integration versus external control and differentiation whereas the vertical axis measures stability and control versus flexibility and discretion.