The Uses of Company Stories: Statements About A Company’s Culture
Posted by
eli
on 8/25/09• Categorized as Business Advice

image from http://www.sxc.hu
It has been said that unique company stories are statements about a company’s culture.
For example, those well known and unique company stories about employees who brave fire and flood to get the product to the customer are not unique, nor is the recounting of these stories just idle talk around the office water cooler.
In a study conducted years ago of the “Uniqueness Paradox in Organizational Stories” headed by Stanford Business School professor Joan Martin, it was found out that company stories, like fairy tales, legends, and religious myths, are expression of a culture that convey claims to uniqueness.
Stories of heroic feats of achievement or sacrifice are intended as statements about the company culture-predictions about what the firm will or won’t do in certain situations, or its expectations about how employees should behave.
In one famous example of a company story that demonstrate the uniqueness of a company culture, a young security supervisor dares to challenge Thomas Watson Jr., the intimidating former chairman of the board of IBM Corp., for not wearing the proper identification badge in a high security area of the company.
In the story, Watson, when challenged, follows the regulations and puts on the correct identification. The IBM story enables employees to apply the regulations within the company without discrimination, fear or favor. For was it not that the chairman of the board even put on the proper identification badge when challenged by a lowly employee?
In effect, the IBM story communicates its company culture, its uniqueness. For the higher-status employees, the moral is, “Even Watson obeys the rules, so you certainly should”. For lower status employees, the message is, “Uphold the rules, no matter who is disobeying.”
Why do some company stories survive and others die by the wayside? Those who survive do so because they help resolve tension between the individual employee and the organization, help explain past actions of employees or the organization, and allow employees to identify with, or distance themselves from, the organization.
What about you and your company? What is your company story that you can tell to your people and the customers about your company’s culture – the way you do things inside the organization?
Tagged as: company culture, company stories, IBM, Thomas Watson Jr






Good post.
But why focus only on IBM. What about other companies? Don’t they have company stories worthy to share also to communicate their company cultures?
Your blog is an awesome read, though.
thanks for the sharing…
Eli,
As always, an informative and thought-provoking post.
Company culture is an amazing dynamic in an organization. It’s nothing that can be “taught” but it is something that is “learned” – learned through the great example you provided.
I might offer another perspective to complement your thoughts. There is a form of company culture that is difficult to impart on the individual. That is a unified understanding and sense of purpose for the company’s primary mission. The importance here is that if everyone is pulling in the same direction, much can be accomplished.
My example is an often cited story about when President Kennedy visited NASA during the space race. Whether it is true or not, it is an excellent example of how important it is that all employees understand the mission – and that it is indeed possible. When President Kennedy came upon a janitor sweeping in a hallway, he asked the janitor what his job was. The janitor reportedly responded, “Mr. President, I’m here to help put a man on the moon.”
I believe everyone at NASA truly knew “the mission.”
Keep up the good work.
Best regards,
Dave
@ Anne, Thanks for your comments. I haven’t read other companies with their own culture. I know there are companies with their own stories, but that of IBM was well known because of the personalities of the Watsons, Thomas Watson who founded IBM and his son junior.
@ Business, Thanks for visiting and commenting.
@ Dave, my respected blogger-friend and the expert blog reviewer, thanks for your wonderful and thought-provoking comment and sharing. I am always enriched by your thoughts and ideas.
very nice info
thanks