Internal Informality–External Formality

Defining the organization's personality, its degree of formality, is a key decision for the entrepreneurial executive. Would you describe the personality of your organization as formal, informal, or both? 

Ninety-five percent of the companies I have seen are single-personality companies. That is, they are either formal or informal, but not both. 

The other five percent possess a dual personality–at times formal, at times informal. This is my kind of organization. 

Successful entrepreneurial organizations are internally informal. That doesn't mean nobody wears a tie to work. It means people feel comfortable talking with each other in a highly verbal environment. It means they write fewer internal memos, favoring more direct, eyeball-to-eyeball communication. Internal informality fosters a productive working environment. People feel better and express themselves more freely. This higher level of unstructured internal communication also pays dividends by delighting the customer. Why? Because the employee is more accustomed to verbal give and take. 

The flip side of the dual organizational personality is external formality. Ever notice how some organizations have a tendency toward misunderstandings with suppliers and customers? Misunderstandings are a business disease that afflict the externally informal. 

The difference between mediocrity and excellence is often not much more than a matter of detail. Externally informal organizations operate with a handshake, not a contract. They don't deal in detail. They agree to something on the telephone but don't follow up the conversation with the important "Here's what I understand" letter or memo to file. They deal in a world of wandering approximates, rather than specific understandings. They regularly miss deadlines and goals. 

External informality isn't accidental. I believe it's caused by laziness. And by managers who aren't comfortable writing a good letter. Given a choice, they would rather say it than write it. Too bad. Agreements and understandings need to be recorded. 

Achievement requires an ability to communicate not as you wish, but as the situation demands. Competent organizational leaders know when to say it informally and when to write it formally. 

Internal informality and external formality are trademarks of winning organizations. Keep it loose on the inside and tight on the outside.