Culture Types Model - Explained

What is the Culture Types Model?

Updated at August 28th, 2023

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What is the Culture Types Model?

The Culture Types Model, by Deal and Kennedy (1982), identifies four corporate culture types characterized by Feedback Speeds and Degree of Risk.

Deal and Kennedy argue corporate culture is based on an interlocking of six components:

history,
values and beliefs,
rituals and ceremonies,
stories,
heroic figures, and
the informal cultural network of storytellers, gossipers, whisperers, spies and priests.

Their Culture Types model distinguishes four corporate culture types, based on two elements:

Feedback Speed: How quickly are feedback and rewards provided (through which the people are told they are doing a good or a bad job).
Degree of Risk: The level of risk taking (degree of uncertainty).

The combination of these two elements results in four types of corporate cultures:

Tough-Guy Macho Culture(Fast feedback and reward, high risk):
- Stress results from the high risk and the high potential decrease or increase of the reward.
- Focus on now, individualism prevails over teamwork.
- Typical examples: advertising, brokerage, sports.
Work-Hard, Play-Hard Culture(Fast feedback and reward, low risk):
- Stress results from quantity of work rather than uncertainty.
- Focus on high-speed action, high levels of energy.
- Typical examples: sales, restaurants, software companies.
Process Culture(Slow feedback and reward, low risk):
- Stress is generally low, but may come from internal politics and stupidity of the system.
- Focus on details and process excellence.
- Typical examples: bureaucracies, banks, insurance companies, public services.
Bet-Your-Company Culture(Slow feedback and reward, high risk):
- Stress results from high risk and delay before knowing if actions have paid off.
- Focus on long-term, preparation and planning.
- Typical examples: pharmaceutical companies, aircraft manufacturers, oil prospecting companies.

culture types model explained