Culture of Consensus

As I’ve worked in so many different industries, I think I’ve become a bit of an industry anthropologist. Industries have cultures, and I’ve studied them, adapted to them, and played my part in creating them. I am sharing some of these thoughts with the idea of explaining a culture I’ve grown to know well to newcomers — startup founders, first time cleantech investors, new graduates, and career switchers.

In the utility industry where I spent the first half of my career, there’s a culture of decision-making that I think may be fairly unique. It is partly why firms who work with utilities, sell to utilities, etc highly prize those with experience working in the culture.

What is this culture? It is one defined by consensus-building before decision-making. It is slightly defensive, borne out of the regulatory structure and being in the position of responding to stakeholders in highly visible settings. It is highly risk-averse, perhaps for the same reason. It is an aging organization at the crux of a “do your time” mentality and a newer guard roaring to take on more.

In my assessment, it stems from the fragile balance the business model relies on that must balance the regulated business with the direction of shareholders.

And yet, it is this culture that leads to slow movement. To move, to innovate, an organization needs to make decisions quickly. A utility can’t really do that. They must confer with engineers and lawyers, file the question with the regulator, wait 90 days, listen to stakeholder and public input, and then wait for their decision. Not always, but for many things.

After I left the energy utility sector and recently came back after 7 years, I was surprised by the jarring culture differences. I had grown accustomed to the startup culture, but some of the utility culture felt like returning home.

In startup culture, in my experience, most important topics of conversation are related to solutions and progress. I learned quickly that risk management culture outside of the utility context can be perceived negatively, and to overcome that by bringing solutions to the table along with identified risks. As I started working with companies in the utility sector again, I realize that I enjoy naming the risks because it helps me plan.

In startup culture, I learned quickly the importance of story and organizational DNA. Down to the founding documents among cofounders and early investors, what is stated therein matters greatly to how decisions are made in the decades to come. As I started working with companies in the utility sector again, I realize that progress in the utility sector could be doing the same to make the values and even legal documents reflect the vision and priorities of a firm. Without that or some regulatory or shareholder action, progress is just a buzzword.

I miss the “get it done” mentality of startup life. Case in point: I researched, chose, deployed, trained, and launched a CRM system for the company in, um, 4 or 5 months start to finish. Same for timecards, except make that 4 or 5 weeks. When I worked in the utility space I made a database of regulatory requirements once that took a year or two to complete. Things take longer.

I’ll close with a chart from a classic b-school paper about evolution of organizations as they grow. I’ve worked most in Phase 1, Phase 3, and Phase 5 organizations and industries. Where is your organization on this chart? Where is your industry?

The Greiner Curve - Strategy Tools training from MindTools.com

What do you think?