Three Different Types Of Culture

Much has been written about the importance of corporate culture. Heck, I devoted a chapter to it in my book, NO YELLING, and I talk about it regularly in my conversations with business leaders. Corporate culture matters. But if that is the only kind of culture you think about, you are missing some important nuances.

Harvard Business Review recently wrote about lessons learned from the military. This type of article is not new, but they approached the culture aspect in a way I have never seen. They talked about the differences between the four armed services. Of course, we all know the Marines differ from the Air Force, but the article delved deeper into these differences. It talked about the tradeoff between process and flexibility. The Navy and the Air Force, it said, are process-driven, with a very clear command-and-control structure; the Army and the Marines are more about succeeding in the fog of war through mission-type orders and adaptive leadership that allows flexibility in combat. Both approaches are highly effective. Gallup polls continue to rank the military as one of the most trusted organizations in America. This trust, coupled with on-the-job success, leads businesses to recruit from the military. Clearly, I think this is a good thing. But consider the broader aspects of culture and the process/flexibility tradeoff before you make that hire.

There are three types of culture you need to know about:

1) Industry culture: In the case of the four armed services, their industry is the military. Your industry may be construction.
2) Corporate culture: This explains the ways in which each branch of the military (or each construction company) is different from the others, as in the Marines vs. the Navy.
3) Occupational culture: Accounts for differences in positions within a company. For example, a pilot in the Marines is not the same as a grunt in the Marines. The people in your accounting department do not have the same responsibilities as the people in project management.

So, how does all of this relate to you?

First, if you only select people based on industry experience, you may be making a huge mistake. I see this all too often: a quick look at the resume confirms the candidate has the industry experience you are looking for. You convince yourself before you even meet them that they are exactly what you need. This halo effect causes you to ignore red flags during the interview, and you end up hiring someone who does not fit well in your organization. Conversely, if you don't pay attention to corporate culture when you look for a job you are making a big mistake.

Next, you cannot lead everyone in your organization the same way. You know this when it comes to individuals, think about it with regard to groups of people, too. The folks in estimating need to be led differently than the electrical linemen. The payoff in this nuanced approach is a workforce that is more receptive to your input.

Finally, when you pay attention to culture, you make more money. Denison Consulting of Ann Arbor, MI found that the average return on equity for firms scoring low in culture is 6%. That ROE shoots up to 21% in firms with a strong culture.

Industry, organizational and occupational cultures are all important. As the leader of your organization or work group, you are directly responsible for the organizational culture. But you also operate within an industry, so you must be aware of the broader aspects there, too. To fully realize the benefits of culture, you must also nuance your approach to fit the occupational culture of a given work group. This may require that you do things a little differently to maximize your effectiveness, but the payoff is worth the effort.


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Wally Adamchik is President of FireStarter Speaking & Consulting, a national leadership consulting firm based in Raleigh, NC. Visit his website at www.FireStarterSpeaking.com or email him at wally@beafirestarter.com.