Competing Values Framework (CVF)

Overview

• Developed by Robert Quinn & Kim Cameron, University of Michigan.
• Based on the book "Diagnosing and Changing Organizational Culture" (3rd Edition, 2011).
• Used for diagnosing and initiating change in organizational culture with the Organizational Culture Assessment Instrument (OCAI).
• Classifies organizational culture into four types, indicating operational style, employee collaboration, and corporate values.

CVF Model Dimensions

• Vertical Dimension:
  • Flexibility and Discretion vs. Stability and Control.
  • Flexible organizations (e.g., Google, Nike) vs. stable organizations (e.g., universities, Boeing).
• Horizontal Dimension:
  • Internal Orientation and Unity vs. External Orientation and Rivalry.
  • Some focus on internal harmony (e.g., IBM) while others focus on external competition (e.g., Toyota).

Four Quadrants of Culture

1. Hierarchy Culture

   • Bottom Left Quadrant:
   • Characterized by control, formalized structures, and efficiency.
   • Leaders focus on coordination and monitoring.
   • Examples: McDonald's, government agencies.

2. Market Culture

   • Bottom Right Quadrant:
   • Competing environment with focus on results, productivity, and market leadership.
   • Examples: IKEA, Walmart.

3. Clan Culture

   • Upper Left Quadrant:
   • Collaborative environment, akin to a family, with emphasis on morale and loyalty.
   • Examples: Family-owned businesses, NGOs (e.g., Doctors Without Borders).

4. Adhocracy Culture

   • Upper Right Quadrant:
   • Creative and dynamic, emphasizes innovation and risk-taking.
   • Examples: Startups.

Relationships Between Quadrants

• Quadrants emphasize competing values (e.g., flexibility vs. stability, internal vs. external focus).
• Organizations often develop a dominant cultural style over their life cycle.

Organizational Culture Assessment Instrument (OCAI)

• Two-part test to determine current and preferred future culture.
• Questions focused on what to do more, start, or stop in each culture.
• Highlights no "best" culture; depends on organizational needs and timing.

Case Study: Apple's Cultural Evolution

• Early Culture: Dominated by ad hoc and clan cultures under Steve Jobs.
• Pirate Group: Success led to a clan culture with cohesive team spirit.
• Shift to Hierarchy: Needed for stability and control as the company grew, led by John Sculley.
• Efficiency Focus: Matured into a hierarchy and market culture.
• Return of Jobs: Reintroduced adhocracy to reinvigorate innovation.
• Apple achieved balance among different cultures for adaptability.

Critique of the Model

• Requires self-assessment; lacks guidance on the "right" direction.
• Focuses on organizational culture, not national or religious cultures.
• Lacks information on time and resources needed for culture change.
• Encourages ongoing evaluation of cultural alignment with future goals.