An Introduction to the Competing Values Framework by: Kim Cameron, PhD An Introduction to the Competing Values Framework / 11.11
THE COMPETING VALUES FRAMEWORK if they successfully compete against others approach to individual and organizational and establish a market niche. This continuum development and improvement. An illustration The Competing Values Framework was de- ranges from cohesion and consonance on the of the Competing Values Framework provides veloped initially from research conducted by one end to separation and independence on an illustration of the key values, leadership University of Michigan faculty members on the the other. types, value drivers, approaches to change, and major indicators of effective organizational per- theories of effectiveness. formance. It has been found to be an extremely Since the original research was conducted, useful model for organizing and understanding these same dimensions have been repro- Leadership development experiences and a wide variety of organizational and individual duced in a wide variety of research studies, executive education programs often focus phenomena, including theories of organiza- from cognitive style to human development on competencies and capabilities that reside tional effectiveness, leadership competencies, to philosophy. The framework, in other words, in each of the four different quadrants of the organizational culture, organizational design, has proven to be very robust across a variety Framework. The specific leadership tools and stages of life cycle development, organizational of phenomena, and it describes the core ap- techniques that receive emphasis with leader- quality, leadership roles, financial strategy, proaches to thinking, behaving, and organizing ship groups are often determined by the orga- information processing, and brain functioning. associated with human activity. nization’s own culture, aspirations for change, The robustness of the framework is one of its competencies of the senior leadership team, or greatest strengths. In fact, the framework has Together these dimensions form four quad- the data feedback that individuals receive from been identified as one of the 40 most impor- rants, each representing a distinct set of organi- various assessments. tant frameworks in the history of business. zational and individual factors. They identify, for example, the criteria of effectiveness that must For example, tools and techniques such as Approximately 20 years ago, the framework be pursued by organizations, the leadership teamwork, collaboration, talent management, emerged from research on the criteria that and managerial competencies that are most empowerment, or inter-personal relationships predict if an organization performs effectively. effective, the underlying culture of organiza- could be highlighted in the upper left quadrant.
Those investigations were followed by studies EXIBL tions, and so on. What is notable about these FL E
of organizational culture, leadership roles, four core values is that they represent opposite
M T R N management skills, and information processing E E T M or competing assumptions. Each dimension - P G O N L O E styles. From these empirical studies, two major L V E highlights a core value that is opposite from COLLABORATE D
(CLAN)
dimensions consistently emerged. One dimen-
the value on the other end of the continuum-
Do things together
sion differentiates an emphasis on flexibility,
E -i.e., flexibility versus stability, internal versus L
X
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N
E
discretion, and dynamism from an emphasis R
R
E
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external. The dimensions, therefore, produce
T
A
N
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on stability, order, and control. For example,
quadrants that are also contradictory or
some organizations and managers are viewed
competing on the diagonal. The upper left
as effective if they are changing, adaptable, and
quadrant identifies values that emphasize an
transformational. Other organizations and man-
internal, organic focus, whereas the lower right
agers are viewed as effective if they are stable,
quadrant identifies values that emphasize
F
O D C E U predictable, and consistent. This continuum S external, control focus. Similarly, the upper ranges from versatility and pliability on one end right quadrant identifies values that emphasize to steadiness and durability on the other end. The opposite kinds of tools or techniques, such external, organic focus whereas the lower left FLEXIBLE as competitiveness, fast response, decisive-
quadrant emphasizes internal, control values. ness, driving through barriers, or goal achieve- These competing or opposite values in each ment, could be highlighted in the lower right
E L quadrant give rise the name for the model, the X
A
T
N E quadrant.
R
R
E N
T Competing Values Framework. A
N FLEXIBLE L
I
At the University of Michigan, the Competing
F O
D C E U S Values Framework is used to organize an ap-
proach to leadership and management devel-
The second dimension differentiates an internal opment. Individual leadership competencies,
E L
X
A
orientation with a focus on integration, collabo- T
N
E for example, are developed and improved in
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T A
ration, and unity from an external orientation N
L I
the context of the organization’s culture, its
with a focus on differentiation, competition,
strategic competencies, financial strategies,
COMPETE
and rivalry. For example, some organizations pressing problems, and desired outcomes. All (MARKET)
P
E
R
Do things fast S F H
and managers are viewed as effective if they O O
of these factors are measured by instruments R
R M
T
A
-
N T
C E
E
have harmonious internal relationships and R
based on the Competing Values Framework, M
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O D C E U processes. Others are judged to be effective thus providing an integrated and consistent S
2 An Introduction to the Competing Values Framework / 11.11
This framework also suggests that tools and The opposite kinds of tools or techniques, fo- techniques focused on innovation, creativity, ar- cused on assessing and measuring, controlling ticulating future vision, transformation change, processes, structuring, efficiency improvement, or entrepreneurship could be address in the or quality enhancement, could be addressed in upper right quadrant. the lower left quadrant.
EXIBL FLEXIBLE FL E
BR E A K T H R O
U G H
CREATE
Do things first
E L E L X
X A
A T
T
N
E N
E
R
R
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R
E
N
E
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A
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CONTROL
(HIERARCHY)
L
A Do things right
T
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E
M
E
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C
N
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F
O
D C
E U S
F O D C E U S
LEX IBLE F
B RE M T A R N K E E T T M H - P R G O O N L U O E G L V H E D COLLABORATE CREATE
(CLAN) (ADHOCRACY)
Do things together Do things first
E
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CONTROL COMPETE
(HIERARCHY) (MARKET)
P
Do things right Do things fast
L E
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A S
T F
H
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D C E U S
3 An Introduction to the Competing Values Framework / 11.11
THE COMPETING VALUES FRAMEWORK FOR CULTURE, LEADERSHIP, EFFECTIVENESS, AND VALUE DRIVERS
Long-term Individuality New Change Flexibility Change
Culture Type: CLAN Culture Type: ADHOCRACY
Orientation: COLLABORATE Orientation: CREATE
Leader Type: Facilitator Leader Type: Innovator Mentor Entrepreneur Teambuilder Visionary
Values Drivers: Commitment Value Drivers: Innovative outputs Communication Transformation Development Agility
Theory of Theory of Effectiveness: Human development Effectiveness: Innovativeness, vision and high commitment and constant change produce effectiveness. produce effectiveness.
Internal External Maintenance Positioning
Culture Type: HIERARCHY Culture Type: MARKET
Orientation: CONTROL Orientation: COMPETE
Leader Type: Coordinator Leader Type: Hard-driver Monitor Competitor Organizer Producer
Value Drivers: Efficiency Value Drivers: Market Share Timeliness Goal achievement Consistency & Uniformity Profitability
Theory of Theory of Effectiveness: Control and efficiency Effectiveness: Aggressively competing with capable processes and customer focus produce effectiveness. produce effectiveness.
Stability Incremental Fast Control Change Change
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