Organizational Culture: Lessons for NASA--And For All Of Us

Washington Post Headline, August 27, 2003: Report Blames Flawed NASA Culture For Tragedy

On August 26, 2003, the Columbia Accident Investigation Board published its final report on the Columbia Space Shuttle Accident. The report makes for fascinating--and tragic--reading. The report addresses not only the physical reasons why the Shuttle disintegrated on reentry, but also the management practices and NASA "culture" that contributed to the tragedy. In one of its most telling remarks, the report says:

"We are convinced that the management practices overseeing the Space Shuttle Program were as much a cause of the accident as the foam that struck the left wing."

Think about that statement for a moment. It¹s a stunning assertion. A "flawed culture" contributed as much to this tragedy as the laws of physics. How did that happen?

The Accident Board, in section 5.2 of the Report, defines organizational culture as follows:

"Organizational culture refers to the basic values, norms, beliefs, and practices that characterize the functioning of a particular institution. At the most basic level, organizational culture defines the assumptions that employees make as they carry out their work; it defines 'the way we do things here.' An organization's culture is a powerful force that persists through reorganizations and the departure of key personnel."

Several specific questions about an organization's culture were particularly important in the NASA case:

• How does the organization react when subordinate employees raise questions about management's recommendations?
• Is there a system in place that allows employees to voice concerns without fear of retribution?
• How much does the organization rely on precedent--that things will happen a certain way because they happened that way in the past?
• Is it acceptable for an employee to go outside the "chain of command" if he or she has reasons for concern?
• How easy (or difficult) is it for the organization to ask for help from other organizations?

The NASA organizational culture failed the test for several of these. Given the opportunity for Defense Department cameras to observe the shuttle while in orbit, NASA declined the offer. Having experienced numerous incidences of foam striking the shuttle on past flights, with no safety impact, they concluded that there would be no safety impact this time. Lower level employees who raised important questions were not taken as seriously as they should have been. They were viewed as "alarmists."

NASA is a group of very talented and dedicated people. Their technical prowess is unsurpassed. But if the Accident Board is correct, NASA has a dangerous and dysfunctional organizational culture that must change if it is to regain its reputation as a truly successful organization.

What About Your Organization?

NASA's organizational challenges are not unique. We all face them, to some extent. Fortunately, if our organizational culture fails us in some way, it doesn't result in a tragic loss of life. Nevertheless, dysfunctional cultures can cause enormous problems for any organization. They can weaken productivity, increase attrition, and hinder the accomplishment of key organizational objectives.

Human Resources professionals are in an excellent position to help their organizations build an effective culture. To start, here are three questions to ask yourself:

1. Has your organization articulated a company culture, including values and norms? Is there a document that addresses these issues?

2. Are efforts made by the organization to reinforce the culture? Does training occur? Do the organization's values get discussed?

3. Does your rewards program reward people for successfully demonstrating the cultural norms and values of the organization?

If the answer to any of these questions is "no," you have work to do.

If your organization has not developed a written statement of culture and values, this is obviously the place to start. I have worked with several clients who were in this position. We held discussions with senior management and elicited their thoughts on the key values and norms of the organization they believed were instrumental to the organization's success. We documented these and let other people in the organization review them. They were then distributed to all employees.

But don¹t stop there. Effective cultures have to be discussed and revitalized over time. Consider a regular training session for all employees. One of my clients asked me to help them develop a 2-hour training session that addressed the culture and values of the organization. All employees were required to attend. The employees considered hypothetical (but realistic) scenarios where some of the values of the organization were in apparent conflict, and discussed what course of action would be best in that situation. These types of training sessions do an excellent job of reinforcing the company's culture.

Finally, the rewards system needs to reflect the company culture. Some organizations pay lip service to the importance of company values, but reward employees primarily for their work accomplishments. If these employees don't live the values, the organization looks the other way because the employee is "getting things done." This is a sure way to send a message to the organization that cultural norms and values are not really important. Performance evaluation and reward programs must include specific sections that address how well the employee lives the values of the organization.

Summary

Defining and revitalizing an organizational culture is hard work. It is easy for it to be overlooked. But the benefits are far-reaching: better decision-making, higher morale, a more productive work environment, and less employee attrition are just some of the benefits to be realized.

Unfortunately, some people still believe that "organizational culture" is a vague and intangible concept that doesn't warrant detailed attention. To those people I would say this: read the Accident Board Report. And if you still think that organizational culture is too "intangible" a concept to be concerned about, you'd better think again.

Til next time.