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CHAPTER 14: SHAPING CULTURE AND VALUES 425
cooperation, and equality have helped the company consistently win top spots
on Fortune magazine’s list of the best companies to work for in America. 12

External Adaptation Culture also determines how the organization meets goals
and deals with outsiders. The right cultural values can help the organization
respond rapidly to customer needs or the moves of a competitor. Culture can
encourage employee commitment to the core purpose of the organization, its spe-
cifi c goals, and the basic means used to accomplish goals.
The culture should embody the values and assumptions needed by the orga-
nization to succeed in its environment. If the competitive environment requires
speed and fl exibility, for example, the culture should embody values that support
adaptability, collaboration across departments, and a fast response to customer
needs or environmental changes. Consider how the cultural values at FedEx meet
the needs of its competitive environment.

IN THE LEAD Nicky Cava, FedEx
Ever wonder how FedEx consistently manages to get things delivered right on time?
It’s partly because the company lets its drivers decide the best way to get packages
where they need to be. Daniel Roth, a writer at Fortune magazine, rode with FedEx
driver Nicky Cava to get a glimpse of how FedEx operates.
One of the fi rst things Roth noticed was that Cava proudly pointed out “his
truck.” Drivers feel like owners of their delivery vehicles because once they leave
the station, they’re their own boss. FedEx believes in effi ciency, but there are
no monitoring systems tracking where drivers go or how long it takes them to
get there. All the company cares about is that drivers stay safe and make their
deliveries fast to the right people. What seemed to Roth, for example, to be un-
necessary circling of the same blocks was actually Cava’s way of calculating in his
head the best routes to take to make sure he got the priority packages delivered
on time and still had plenty of time to deliver all his standard packages by the end
of the day.
FedEx thrives on a culture of innovation and adaptability, and the hands-off
approach with drivers is an illustration of how leaders encourage and support that
culture. Decision making is decentralized so that people throughout the company

can do what is needed to make sure customers are satisfied. Promotion from within
is gospel; every person is valued and seen as a leader with potential to rise through
the ranks. In addition, managers emphasize listening, so that employees feel free
to share their ideas for how to do things better or faster. Cross-functional teams
support collaboration across departments and help to ensure that creative ideas get
implemented.
FedEx leaders often attribute their company’s success to front-line employees
who go above and beyond the call of duty. They instill and support cultural values of
trust, innovation, risk-taking, and flexibility, which gives people freedom to explore

and create. As FedEx driver Cava puts it, “the only way you lose your job at FedEx
13
is if you make yourself lose your job.”
At FedEx, a strong culture helps bind people together, making the organiza-
tion a community rather than just a collection of individuals. However the culture
also encourages adaptation to the environment in order to keep the organization
healthy and profi table. This chapter’s Consider This highlights the importance of
individual learning and adaptability. Just like people, organizational cultures have
to grow and change to meet new challenges.