Deal and Kennedy's Cultural Model

Deal and Kennedy's cultural model

Deal and Kennedy's model of culture is based on characterizing different four types of organization, based on how quickly they receive feedback and reward after they have done something and the level of risks that they take.

Feedback and reward

A major driver of people in companies and hence their culture is the general feedback and specific rewards that tell them they are doing a good or bad job.

If this feedback is immediate or shorter-term, it will quickly correct any ineffective behavior and hence lead to a consistent culture (those who cannot survive will quickly find out and either leave or be sacked).

If the feedback takes longer to arrive, then can leave mistakes uncorrected, but it also lets people look further out into the future. Either way, there is likely to be some substitute activity (such as process management) to help keep things on track until actual results are known.

Risk

Uncertainty and risk are something that some people hate and some people thrive on. In either case, it is another motivating force that leads people to focus on managing it.

Where the risk is low, people may be willing to take risks up to their acceptable limit. Where they are high, the risks need to be managed or accepted. High risk companies are more likely to include people who enjoy the frisson of taking a gamble.

   | Risk |

| Low | High |

Feedback and reward | Rapid |  Work-hard, 

play-hard

 culture  | Tough-guy macho

culture |

| Slow |  Process

 culture

   | Bet-the-

company

culture

  |

The four cultures

Work-hard, play-hard culture

This has rapid feedback/reward and low risk, leading to:

* Stress coming from quantity of work rather than uncertainty.

* High-speed action leading to high-speed recreation.

* Eg. Restaurants, software companies.

Tough-guy macho culture

This has rapid feedback/reward and high risk, leading to:

* Stress coming from high risk and potential loss/gain...