SolutionsHire top legal talent for any scope of workGet Started Contact us to find the best fit for any in-house or law firm role Testimonials Trusted by the world's leading legal departments FAQ Frequently asked questions about working with Legal.ioEmployer Resources Tools and guides for hiring managers The Welsh novelist and political theorist Raymond Williams wrote that “Culture is one of the two or three most complicated words in the English language”. Indeed, the word has many different meanings, which are subtly different yet interconnected. So what, exactly, is a “company culture”? Well, company culture is the subject of a fascinating 2018 study by four academics writing in the Harvard Business Review, entitled ‘The Leader’s Guide to Corporate Culture’. In their work, Groysberg, Lee, Price and Cheng draw on a century or more of academic literature on cultural studies as they struggle to pin down what a ‘company culture’ is. They propose that a culture is something that is shared, pervasive, enduring, and implicit. In other words, a culture is a group phenomenon (it cannot exist in one person alone), which permeates the whole group, exists over the long term, and shapes people’s behavior without necessarily being aware of it. It guides the way the people of an organization behave through a set of “shared assumptions and group norms”.
The two dimensions of measuring company culture
How can we measure company culture? Groysberg and colleagues set out two metrics upon which to rate a company. The first is its attitude towards ‘people interactions’. Are “autonomy, individual action, and competition” valued? Or are “integration, managing relationships, and coordinating group effort” seen as important? In this dimension, companies are ranked on a spectrum from independence to interdependence.
The other dimension is the company’s ‘response to change’. On this metric, organizations are measured on a range from stability – prioritizing “consistency, predictability, and maintenance of the status quo” to flexibility – emphasizing “adaptability and receptiveness to change”.
The 8 company culture types
By giving organizations scores on these two dimensions, the academics have delineated eight different types of company cultures that describe companies and other organizations today. Let’s have a look at them.
Interdependent and flexible
Caring: Caring company cultures emphasize interdependency, with some flexibility. They focus on “relationships and mutual trust”. Employees are loyal, and leaders value sincerity and good team relationships.
Purpose: These companies place some focus on interdependency, with a very high degree of flexibility. These work environments tend to be “tolerant, compassionate places” in which employees and leaders focus on greater causes and ideals.
Independent and flexible
Learning: These environments emphasize flexibility, with some independence for employees. They focus on innovation, knowledge growth, and exploring ideas.
Enjoyment: These cultures are very independence-focused, with some value placed on flexibility. They are lighthearted workplaces with priority assigned to spontaneity, humor, and having fun at work.
Independent and stable
Results: This is one of the most common company cultures, placing strong value on independence and some value on stability. These are merit-based workplaces focused on accomplishment and the drive for success.
Authority: These workplaces put most emphasis on stability, with some on independence. They are “competitive places where people strive to gain personal advantage”.
Interdependent and stable
Safety: This type of culture stresses stability most of all, with some value assigned to interdependence. This type of organization is risk-conscious, with leaders stressing the need to plan ahead and think realistically.
Order: Finally, this environment values interdependence most strongly, with a secondary focus on stability. Employees value cooperation, while leaders value shared procedures and customs.
So, which type of culture does your organization belong to? Each culture has its strengths and weaknesses, and many organizations show elements of more than one. Groysberg, Lee, Price, and Cheng’s study also considers how to find the right culture for your organization, and to maximize organizational performance by doing so.
It can sometimes be hard to know what culture we’re in, just as a fish might not know it’s swimming in water. But putting some thought into the unarticulated assumptions driving behavior among you and your colleagues can go a long way to bringing out the best in your firm.
‘The Leader’s Guide to Corporate Culture’ is available to read for $8.95 or by registering for a Harvard Business Review account.