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Mental Models

Organizational Culture and Dynamics

Organizational norms and structures shape who makes decisions, which evidence they use and how they learn. These conditions can support or obstruct the Empirical & Experiential Evidence (3E) framework.

THE IDEA

Internal Design & Dynamics

How many of the estimated 35,000 or so decisions made by an average person on daily basis are truly individual, given the profound role played by organizations in modern society? While it may not be feasible to arrive at a sound numeric estimate, it is safe to assume that a significant proportion of small and big choices is made in a group setting. Taking up a large proportion, even the majority of an average person's functioning time, engagement with school, work, social, or professional organizations should be expected to account for a proportional share of daily decisions. Thus, many of the 35,000 daily decisions are likely made in a group setting, and many other choices are affected, directly or indirectly, by group dynamics. Understanding those dynamics is important to the decision-making value of the Empirical & Experiential Evidence (3E) framework.

Organizational culture is one of the perhaps most celebrated and at the same time most elusive manifestations of group dynamics, often described in terms of a combination of physical features and behavioral norms. Pixar, a well-known movie animation studio, offers its animators and engineers a host of enviable physical amenities at its 22-acre Emeryville, California campus including gourmet cafeteria with a cereal bar, a soccer field, a swimming pool, billiards and foosball tables, whereas organizations such as Kayak, a travel company, place more emphasis on somewhat less visible perks such as flexible hours, travel bonuses, team excursions and games. Some organizations' design features only implicitly address decision-making, as is the case with Kayak, where employees are hired on the basis of being smart and then encouraged to think 'outside of the box' and put their ideas to work, while in case of others, best illustrated by Zappos, an online retailer, altogether eschew traditional management structure in favor of organizational designs such as holacracy, where employees define their own job titles, everyone has a voice, and rather than reporting to individual managers, employees work in groups and are accountable to groups.

Structure, culture and management philosophy shape which information an organization uses and how it learns from decisions. These internal conditions affect evidence-based practice, including the 3E framework. Here, culture means the shared assumptions, values and beliefs that guide behavior; organizational dynamics includes the practices used to support learning.

When to use it

  • Evaluating a job offer by considering the organizational culture and decision-making style.

  • Designing a new team structure to encourage innovation and collective decision-making.

  • Analyzing why a company struggles with implementing evidence-based practices due to its hierarchical or rigid culture.

  • When consulting for an organization, assess its internal dynamics to recommend improvements in evidence-based decision-making.

FROM THEORY TO EVERYDAY LIFE

In practice

01

Pixar's Physical Amenities

Pixar offers animators and engineers a host of physical amenities at its Emeryville campus, including a gourmet cafeteria with a cereal bar, a soccer field, a swimming pool, billiards, and foosball tables, implicitly encouraging creativity and collaboration.

02

Kayak's Cultural Perks

Kayak emphasizes perks like flexible hours, travel bonuses, team excursions, and games, along with hiring smart employees and encouraging them to think 'outside of the box' and put ideas to work.

03

Zappos' Holacracy

Zappos eschews traditional management in favor of holacracy, where employees define their own job titles, everyone has a voice, and employees work in groups accountable to the group rather than to individual managers.

✳

A MOMENT TO REFLECT

Put it to work.

  1. How does the organizational culture at your workplace influence the decisions you make daily?

  2. In what ways could the structure of an organization hinder or promote effective evidence-based decision-making?

  3. Identify an organization you know well. What are its core cultural assumptions and how do they shape behavior and learning?

CONTINUE THE CONVERSATION

Source texts

  • Evidence-Based Decision-Making How to Leverage Available Data and Avoid Cognitive Biases (Andrew D. Banasiewicz)
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