By | Eric Flamholtz | President, Management Systems Consulting
Author’s Note to Readers:
· This newsletter focuses upon various aspects of the development of “Sustainably Successful Organizations.”℠ This issue focuses upon corporate culture, its effects and its management.
Abstract
One of the dysfunctional things that can happen to an organizational culture is for people to view individual success as a Zero-Sum game. The term “Zero-Sum game” refers to any situation in which one person wins another must, by definition, lose. A dysfunctional corporate culture where success is viewed as a “Zero-Sum game” can severely damage an otherwise successful enterprise and/or actually cause the business to fail. This article examines this Syndrome and explains how it can be overcome.
Corporate culture is Invisible but Powerful
Corporate culture is invisible and intangible but has real impact both positively and negatively on organizations. Unfortunately, many organizations a fail to realize the powerful impact of corporate culture and also fail to manager it effectively.
Since the culture is largely invisible to the naked eye just like the covid-19 pathogen, it can surreptitiously invade a business. Once it is established (just like the Covid-19 virus), a dysfunctional corporate culture can either severely damage an otherwise successful enterprise and/or actually cause the business to fail.
The “Zero Sum Culture Syndrome”
One of the most pernicious or dysfunctional things that can happen to an organizational culture is for people to view individual success as a Zero-Sum game. The term “Zero-Sum game” refers to any situation in which one person wins another must, by definition, lose. Clearly, there are games with zero sum outcomes, including games of skill like chess, games, of chance like coin flips, and games of mixed skill & chance like poker. In addition, there are certain situations in organizations when two or more people are competing for a position that the promotion of one is a possible loss to others. There are also events in organizations where there are what can be termed “Pareto Optimal results,” where a benefit to one person technically alt least has no cost to another. However, when people view one person’s success as having damaged them in some way– even if the reality is that it has not cost them anything– the culture has become a Zero-Sum Culture.
