Guest Commentary: Corporate Culture – Top Down or Bottom Up?

by Tom Rentschler

Is a company’s corporate culture something that is imposed from the top, or does it emerge organically from within the organization? I had the privilege of attending the Gartner Supply Chain Executive Conference where the keynote address was delivered by legendary management guru Gary Hamel. Hamel, for those not familiar with his work, is “the world’s leading expert on business strategy,” according to Fortune. In his address to approximately 1,500 senior-level supply chain executives, he argued persuasively against the old, hierarchical, command-and-control management style spawned by the Industrial Revolution. Drawing on his latest research and book, Hamel demonstrated that it is innovation in management—rather than in operations, products or strategies—that is most likely to create long-term advantage. He literally calls for nothing less than a revolution in how large organizations are structured, managed and led.

In his book, “The Future of Management,” Hamel provocatively states: “Turns out that in an age of wrenching change and hyper-competition, the most valuable human capabilities are precisely those that are least manage-able. Nerve. Artistry. Élan. Originality. Grit. Non-conformity. Valor. Derring-do. These are the qualities that create value in the 21st century. Self-discipline. Economy. Orderliness. Rationality. Prudence. Reliability. Moderation. Fastidiousness. These are the human qualities modern management was designed to foster and reward. No wonder most organizations are less resilient and inventive than the people who work for them.”

Hamel essentially proposes a new management style that mirrors the bottom up, organic growth of the Internet. “The web has evolved faster than anything human beings have ever created-largely, because it is not a hierarchy. The web is all periphery and no center. In that sense, it is a direct affront to the organizational model that has predominated since the beginnings of human history.” Hamel admitted that his ideas might sound heretical to the management practitioners gathered at the Gartner conference, but he urged them to “try to imagine what a democracy of ideas would look like. Employees would feel free to share their thoughts and opinions, however politically charged they might be. No single gatekeeper would be allowed to quash an idea or set the boundaries on its dissemination. New ideas would be given the chance to garner support before being voted up or down by senior execs. The internal debate about strategy, direction and policy would be open, vigorous, and uncensored. Maybe this sounds hopelessly romantic, but such a ‘thoughtocracy’ already exists-not in any big company, but on the web.”

When I started my second career as the VP of marketing at FORTE, having spent nearly 20 years as a partner in a successful advertising firm, I discovered that a corporate culture clearly existed and that it had not been imposed from the top. This culture of “excellence over adequacy,” as I’ve dubbed it, grew out of a common passion to relentlessly serve the best interests of our clients. In essence, the people at FORTE built our culture from the bottom up.

While I won’t pretend that we’ve achieved the level of management innovation that Gary Hamel advocates, I do believe that a corporate culture is best if it emerges naturally from within, rather than being imposed from the top. I suspect Gary Hamel would agree.

Tom Rentschler is VP, Sales and Marketing at MHI member FORTE.

 

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