The Competing Values Framework

Background

Robert E. Quinn is the Margaret Elliot Tracy Professor Emeritus at the University of Michigan, Ross School of Business. His research and writing focuses on purpose, leadership, culture and change. He is one of the co-founders and of the field of Positive Organizational Scholarship and a cofounder of the Center for Positive Organizations. He is in the top 1% of professors cited in organizational behavior textbooks. 

Kim Cameron is the William Russell Kelly Professor of Management and Organizations at the Ross School of Business and Professor of Higher Education in the School of Education, both at the University of Michigan. 

The Competing Values Framework, in short, the CVF model was developed by Professor of Management and Organizations at the University of Michigan Robert Quinn and Professor of Management and Organizations at the University of Michigan Kim Cameron.

The review of the model in this video is based on the book “Diagnosing and Changing Organizational Culture Based on the Competing values framework” third edition published in 2011.

The model can help you diagnose and initiate change in your organizational culture.

To determine where your organization is located in the CVF model right now and where it should be located in the future. 

The model can help you diagnose and initiate change in your organizational culture.

About the CVF model

The Competing Values Framework gives a classification of four corporate cultures, which indicate how a company operates, how employees collaborate and what the corporate values are.

Two dimensions form four quadrants: 

The Hierarchy culture which is Stability and Control combinated with Internal Focus and Integration

The Market Culture which is Stability and Control combinated with External Focus and Differentiation

The Clan Culture which is Flexibility and Descretion combinated with Internal Focus and Integration

The Adhocracy Culture which is Flexibility and Descretion combinated with External Focus and Differentiation

The four Cultures

The Hierarchy culture in the bottom left corner is characterized by a controlling environment. The Hierarchy culture is characterized by a formalized and structured place to work. Procedures and controls govern what people do. Effective leaders are good coordinators, organizers and monitors. Maintaining a smoothly running organization is important. The long term concerns of the organization are stability, predictability, and efficiency. Formal rules and policies hold the organization together. Success is defined in clear lines of decision-making authority, control functions and accountability mechanisms. Examples of organizations are fastfood restaurants such as McDonalds or a Government agency that are responsible for controls in airports. In both organizations there are strict guidelines for every small detail.

The Market culture in the bottom right corner is characterized by a competing environment. The Market culture is a result-oriented workplace. The basic assumptions in the Market culture are that external environment is hostile rather than benign, consumers are choosy and interested in value. Leaders are hard-driving producers and competitors who are tough and demanding. The major task of management is to drive the organization towards productivity, results and profits. The glue that holds the organization together is an emphasis on winning.  Success is defined in terms of market shares and penetration. Examples of organizations are IKEA a worldwide furniture chain or Walmart a retail chain. They goal is to outpace the competition and be market leaders.

The Clan culture in the upper left corner is characterized by a collaborating environment. The clan culture is typified by a friendly place to work where people share a lot of themselves. It is like an extended family. Leaders are thought of as mentors, facilitators, Team builders and perhaps even parent figures. The organization is held together by loyalty and tradition. Commitment is high. The organization emphasizes the long-term benefit of individual development, with high cohesion and morale being important. Success is defined in terms of internal climate and concern for people. The organization places a premium on teamwork, participation, and consensus. Examples of organizations  are small family owned companies and some NGO like Medecins Sans Frontieres and Wikipedia.

The Adhocracy culture in the upper right quadrant is characterized by a creating environment. The adhocracy culture is a dynamic, entrepreneurial, and creative workplace. People stick their necks out and take risks. Effective leadership is visional, innovative, and risk oriented. The glue that holds the organization together is commitment to experimentation and innovation. The emphasis is on being at the leading edge of new knowledge, products, and services. Readiness for change and meeting new challenges are important. The organization’s long-term emphasis is on rapid growth and acquiring new resources. Success means producing unique and original products and services. Examples of organizations are start-ups - most of those are entrepreneurial ventures.

Critique of the model.

You have to find out for yourself where you are in the model and what culture you want to work toward. There is no help along the way in the model that says whether you have chosen the right direction.

When talking about culture in this theory, it always deals with organizational culture. National or religious cultures are not considered.

The theory has not included the time and resource aspect. We do not know how long a culture change will take or whether alle changes are equally extensive

The good thing about the model is that it continuously forces you to focus on whether your organization has the right culture in relation to the goals that your organization wants to achieve in the future.