Using the Organizational Culture Inventory (OCI) to Measure Kotter and Heskett's Adaptive and Unadaptive Cultures

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Since its publication in 1992, John P. Kotter's and James L. Heskett's book, Corporate Culture and Performance, has generated increased interest in the relationship between an organization's culture and its economic performance. Basically, the book postulates that organizational culture influences economic performance — for better or worse.

Prior to the book's publication, strong and strategic cultures were believed to create excellent business performance. However, Kotter and Heskett have shown that these two aspects are not sole predictors of positive economic performance: What also need to be included in the analysis are the shared values and practices within these strong and strategic cultures. In short, looking closely at what is being encouraged in an organization is just as, if not more, important than looking at the organization's strengths and strategies.


Adaptive and Unadaptive Cultures

In Corporate Culture and Performance, cultures that facilitate the adoption of strategies and practices that continuously respond to changing markets and new competitive environments are termed "Adaptive Cultures." These healthy cultures support an organization's immediate strategy and business context, and are also forward looking and strive to guide positive change. Characteristics of unhealthy, or "Unadaptive Cultures," are arrogance, inward focus and bureaucracy. Although these characteristics may support an organization's immediate strategy and business context, they undermine its ability to adapt to change.

Organizational development consultants can use the Kotter and Heskett framework to describe for clients the characteristics of healthy and unhealthy cultures, as well as the process needed to move from one to the other. However, although Kotter and Heskett indicate that effective leadership is needed to move from an Unadaptive Culture to an Adaptive Culture, they do not to give the tools needed to objectively determine if this movement is taking place. This is where the Organizational Culture Inventory (OCI) fits in.

OCI

The OCI is a 96-item survey that measures 12 distinct behavioral norms or "styles" that identify the shared beliefs, values, and expectations that guide the way organization members interact with one another and approach their work. These styles are divided into three groups.

Constructive Cultural Styles

Cultures in which members are encouraged to interact with others and approach tasks in ways that will help them meet their higher order satisfaction needs are characterized by the following styles.

  • Achievement (11)*
  • Self-actualizing (12)
  • Humanistic-Encouraging (1)
  • Affiliative (2)

Aggressive/Defensive Cultural Styles

Cultures in which members believe they must interact with people in ways that will not threaten their own security are characterized by the following styles.

  • Oppositional (7)
  • Power (8)
  • Competitive (9)
  • Perfectionistic (10)

Passive/Defensive Cultural Styles

Cultures in which members are expected to approach tasks in forceful ways to protect their status and security are characterized by the following styles. Approval (3) Conventional (4) Dependent (5) Avoidance (6)

Values

The OCI items and styles can be applied to Kotter and Heskett's definition of Adaptive and Unadaptive Cultures. For both types of cultures, the authors outline the predominant core values (e.g., norms, goals, and shared behaviors that persist over time) demonstrated by managers. As the following table indicates, all core values have corresponding OCI items:

 

Core Values
(Kotter and Heskett)

Associated OCI Styles and Items

Adaptive Cultures

Managers
care about customers, stockholders, and employees
value people and processes that create useful change

Humanistic-Encouraging (1)
... help others to grow and develop
Affiliative (2)
... treat people as more valuable than things
Achievement (11)
.... pursue a standard of excellence
Self-Actualizing (12)
... think in unique and independent ways

Unadaptive Cultures

Managers
care mainly about themselves, the immediate work group, or some product or technology
value orderly and risk-reducing management process
devalue leadership initiatives while overvaluing managerial initiatives

Approval (3)
... make sure they are accepted by others Conventional (4)
... not "rock the boat" Dependent (5)
... be a good follower Avoidance (6)
... be non-committal Oppositional (7)
... oppose new ideas Power (8)
... build up power base Competitive (9)
... compete rather than cooperate Perfectionistic (10)
... do things perfectly

Also, notice that the Unadaptive Cultures are associated with items describing the Passive/Defensive and Aggressive/Defensive Culture Styles. According to Kotter and Heskett, these items measure a culture's commitment to:

  • emphasizing short-term results
  • emphasizing structure and systems over leadership
  • valuing one component of business (i.e., customers, stockholders, employees) at the expense of the others
  • holding on to practices and strategies that are no longer useful internal, rather than external, pressures to change
  • stifling initiative and innovation
  • holding on to "groupthink symptoms" such as:
  • pressure to conform
  • discomfort over expressing negative thoughts
  • illusions of invulnerability
  • biased perceptions of the competition (if competition is taken into account)

Notice that Adaptive cultures are associated with items describing the Constructive Culture Styles. According to Kotter and Heskett, these items measure a culture's commitment to:

  • be proactive
  • be risk taking
  • be trusting
  • members who actively support each other to identify problems and find workable solutions
  • feelings of confidence
  • members who believe they can effectively manage any problem
  • enthusiasm
  • valuing entrepreneurship
  • leadership that produces change
  • integrity
  • maintaining a fit between the culture and the business context
  • promoting and training those who believe in the culture.
  • alternative strategies, if brought up, are ignored.

But the ability to objectively measure an organization's shared values is just the first step in determining if the culture is Adaptive or Unadaptive. The second step is to determine the common behaviors and practices that are passed on to new members. As the following table indicates, all common behaviors have corresponding OCI items:

Common Behaviors

Associated OCI Style and Items

Adaptive Cultures

Managers
pay close attention to customers, stockholders, and employees initiate change when needed initiate change even though it may entail risk

Humanistic-Encouraging (1)
...resolve conflicts constructively Affiliative (2)
...cooperate with others Oppositional (7)
...play the role of "loyal opposition" * Achievement (11)
...explore alternatives before acting Self-Actualizing (12)
...do even simple tasks well

Unadaptive Cultures

Managers behave insularly, politically, and bureaucratically do not change strategies in response to changing business environments

Approval (3)"
...go along" with others Conventional (4)
... always follow policies/practices Dependent (5)
...accept goals without questioning them Avoidance (6)
... wait for others to act first Oppositional (7)
... refuse to accept criticism Power (8)
...use the authority of the position Competitive (9)
... turn the job into a contest Perfectionistic (10)
... set unrealistically high goals

Again, notice that Adaptive Cultures are associated with items that primarily describe the Constructive Culture Styles, while Unadaptive Cultures are associated with items that describe the Passive/Defensive and Aggressive/Defensive Culture Styles.

In summary, the Kotter and Heskett framework and the OCI are a powerful combination of tools for client organizations seeking culture change initiatives. When used together, these tools not only enable the organization to outline the change, but also provide the organization with the means to implement the change by describing the present culture, determining behaviors that will need to change to foster an Adaptive Culture, and measuring progress toward change over time.

*Note that while the Oppositional style falls in the Aggressive/Defensive styles group, scores up to about the 60th percentile are regarded by most organizations and its members as Adaptive.

References:
Cooke, R. A. & Lafferty, J. C. (1987). The Organizational Culture Inventory.
Plymouth, MI: Human Synergistics, Inc.
Kotter, J. P. & Heskett, J. L. (1992). Corporate Culture and Performance.
New York: The Free Press.