Page 22 - MS Year in Review 2017_Neat

does not mean that the company’s culture is “soft.” Most companies that are
corporate culture champions are very demanding of people.

There are also companies whose management of corporate culture is so mangled
and or dysfunctional that they are “corporate culture losers”! Some corporate
culture losers are just “highly dysfunctional” and just do not manage corporate
culture well. Examples included Uber, United and Sears. Other companies have
cultures that are toxic or even approach true evil. In this context, a “toxic culture”
is one that is highly dysfunctional to customers, employees, and even shareholders,
while an evil culture is one that is designed to deceive customers and employees,
and/or commits actual crimes. For example, Volkswagen which designed software
to deceive regulators as well as customers about mileage, and possibly Theranos,
which has been accused of misleading company directors as well as its customers
about its laboratory testing practices.33 Specifically, it has been alleged that
Theranos said it could do 98% of the tests it offered using its proprietary
technology; when in fact a former lab director said 90% of samples were tested
using more conventional methods (that were not proprietary to Theranos).34 As
stated in the Wall Street Journal, “the company closed its medical lab operations in
October 2016 after facing regulatory scrutiny.”35

We call these companies a “Culture Frankenstein,” because they are creations that
are true monsters.

IS YOUR COMPANY A CULTURE CHAMPION OR A
CULTURE FRANKENSTEIN?

If your company is a culture Champion like Starbucks or Ritz Carlton, then your
culture is a true economic asset. However, if your company’s culture is a culture
Frankenstein like Uber, United, Volkswagen and Theranos, then your culture is a

33 Christopher Weaver, “Theranos Investor Suit Offers Detail,’ Wall Street Journal, Business &
Finance, Saturday/Sunday, April 22-23, 2017, B1.
34 Christopher Weaver, “Theranos Settles With Hedge Fund, Wall Street Journal, Business & Finance,
Thursday May 2, 2017, B3.
35 Ibid.

21

© Management Systems Consulting Corporation, 2018. All rights reserved