Every Organization Has a Culture and Is Therefore Eligible for Culture Shock

In the early 1980s I served on the board of directors of a Los Angeles company that did business in several countries. We came upon shaky times, encouraged our CEO to leave and went about the business of replacing him. We enjoyed a strong national reputation and had several excellent candidates. We selected what we thought was an extraordinary individual to become our new CEO. 

It didn't work. In less than six months he was gone, replaced by a long-time vice president with more friends in the organization but fewer of the needed skills. 

The CEO we hired from the outside was very good. His credentials were strong coming in and were proven in the short time he was there. So why didn't he succeed? Competence doesn't always win the day. He created systems and provided solutions that were appropriate. In doing so, however, he insulted tradition and shocked the company's culture. It wasn't the type of cultural experience the company needed. 

With the benefit of hindsight, his style wasn't in step with the 50-year tradition of the company. He was the first outsider the organization ever had in a top job. He challenged the good-old-boy network–and the good old boys won! 

Businesses are mini-societies with their own culture. As with individuals, rapid-fire cultural changes create havoc. Newly appointed leaders need to learn about the organization's heritage and accommodate it during the transitional period. 

Leading is a cultural experience. Be sure not to give it a shock.