0. Can a Culture be Lethal? Summary & Criticism
By 17th Group:
Virpi Hytönen, Mengyuan Yang, Xiaohui Zhu

2. Agenda Summary for the article Implication for management
Criticism and more thinking over culture

3. The Space Shuttle Columbia
In the February year 2003 the Shuttle was exploded apart
Columbia Accident Investigation Board was set up
The immediate cause to the disaster was a hole in the Thermal Protection System
The indirect causes was found in the organizational culture

4. Organizational culture
From engineering culture to the managerial culture
From open communication to the communication barriers
Efficiency over the risk
“Faster, cheaper, better”
“What can go wrong?”

5. Agenda Summary for the article Implication for management
Criticism and more thinking over culture

6. Implication Culture is Culture is learned.
a pattern of shared basic assumptions that a group learned as it solved problems of external adaptation and internal integration,
to be taught to new members as the correct way to perceive, think and feel in relation to those problems.
Culture is learned.
An individual or a group acquires patterns of thought and behavior by processes of socialization and acculturation.
Leaders play a major role in shaping organizational culture.
When norms of safety, respect, honesty, fairness and the like are integral parts of a culture, its people make ethical decisions.

8. Agenda Summary for the article Implication for management
Criticism and more thinking over culture

9. Criticism 1 Strategy wrong or culture wrong?
Usually we only judge culture as “suitable” or “unsuitable”
Long-term: Whether it’s suitable for Vision or Core Value
Short-term: Whether it’s suitable for Strategy
“Wrong culture” = “unsuitable Culture”
NASA’s vision and mission remain unchanged; However, NASA’s culture change keeps close pace with strategy change (see next slide)
If culture is suitable and right, what is wrong ???? STRATEGY !!!

10. Criticism 1 (cont’d)
NASA Established
1958
1972
Nixon’s announcement
1986
Challenger
disaster
2003
Columbia
2011
Space Shuttle Program end
1982
Reagan’s declaration
Stop Mars project and Space Platform
Shuttle was “fully operational”
Core Value: Safety / People / Excellence / Integrity
Strategy Change:
All eggs in one basket: Shuttle Program
Heavy schedule of Shuttle launch, e.g. target 714 flights
Strategy Change:
Internalize the commercial and military goals
More launch pressure
Outside economic resources, e.g. contractor which designs O-ring for Challenger
Strategy Change:
“Manage risk and cost to ensure success”
Make individual manager understand risk and cost estimation
Culture focus on Excellence
Culture focus on Production and Bureaucracy

11. Criticism 2 How to develop HRO (Highly Reliable Organization)?
For NASA, we suggest to establish hypocrisy
Image to government: promising economy engine in the future
Image to public: world’s hero, safety first, meaningful work
Image to internal: still care about technical problems and engineers’ opinions
Maybe by PR management and cautious Scorecard design
More and more isolated from US government

12. Criticism 3 Can culture really be changed individually?
Culture is a comprehensive “side product” of other factors: History, Leader, Strategy, Performance Management, HR Management, Internal Control......
Changes must start from factors other than Culture
For NASA, we suggest change from STRATEGY DESIGN !!
Prioritize safety, at least measure technical risk and financial risk separately
Cost control can be included, but cannot be aggressive
Strongly advise to put all commercial projects in one business unit
......

13. Thanks for listening and sharing !
By 17th Group:
Virpi Hytönen, Mengyuan Yang, Xiaohui Zhu

14. Discussion
Have you ever experienced interesting or freaky working cultures?
What is culture in your opinion?
How to change culture?
… …
Any suggestion for such political economy as NASA?

15. A case about “lethal culture”
Foxconn: largest employer in China ( 1 million+), manufacturer for BlackBerry, iPad, iPhone, Kindle, PlayStation 4, Xbox One, and Wii U
During the whole year of 2010, 14 employees took suicide at plant site, aging from 18 to 24
Some clues for working culture:
12 hours’ working / day
If unable to meet hourly quota, no rest
Conversation in the workshop is forbidden
Every movement is standardized for maximum efficiency
So hard to make friends because work shift changes quite often
Modern factory facility: swimming pool and cinemas