An Introduction to the

Competing Values Framework

by: Kim Cameron, PhD
 An Introduction to the Competing Values Framework /
11.11

THE COMPETING VALUES FRAMEWORK have harmonious internal relationships and

if they successfully compete against others
processes. Others are judged to be effective
and establish a market niche. This continuum
The Competing Values Framework was de- ranges from cohesion and consonance on the
veloped initially from research conducted by one end to separation and independence on
University of Michigan faculty members on the other.
the major indicators of effective organizational
per- formance. It has been found to be an Since the original research was conducted,
extremely useful model for organizing and these same dimensions have been repro-
understanding a wide variety of duced in a wide variety of research studies,
organizational and individual phenomena, from cognitive style to human development
including theories of organiza- tional to philosophy. The framework, in other
effectiveness, leadership competencies,
words, has proven to be very robust across a
organizational culture, organizational
variety of phenomena, and it describes the
design, stages of life cycle development,
core ap-
organizational quality, leadership roles,
proaches to thinking, behaving, and organizing
financial strategy, information processing,
and brain functioning. The robustness of associated with human activity.
the framework is one of its greatest
Together these dimensions form four quad-
strengths. In fact, the framework has been
rants, each representing a distinct set of organi-
identified as one of the 40 most impor-
zational and individual factors. They identify, for
tant frameworks in the history of
business. example, the criteria of effectiveness that must
be pursued by organizations, the leadership
Approximately 20 years ago, the framework and managerial competencies that are most
emerged from research on the criteria effective, the underlying culture of organiza-
that predict if an organization performs tions, and so on. What is notable about these
effectively. Those investigations were four core values is that they represent
followed by studies of organizational opposite or competing assumptions. Each
culture, leadership roles, management dimension highlights a core value that is
skills, and information processing styles. From opposite from the value on the other end of
these empirical studies, two major dimensions the continuum-
consistently emerged. One dimen- sion -i.e., flexibility versus stability, internal versus
differentiates an emphasis on flexibility, external. The dimensions, therefore, produce
discretion, and dynamism from an quadrants that are also contradictory or
emphasis on stability, order, and control. competing on the diagonal. The upper left
For example, some organizations and quadrant identifies values that emphasize an
managers are viewed as effective if they are internal, organic focus, whereas the lower right
changing, adaptable, and quadrant identifies values that emphasize
transformational. Other organizations and external, control focus. Similarly, the upper
man- agers are viewed as effective if they right quadrant identifies values that emphasize
are stable, predictable, and consistent. This external, organic focus whereas the lower left
continuum ranges from versatility and quadrant emphasizes internal, control values.
pliability on one end to steadiness and These competing or opposite values in each
durability on the other end.
X quadrant give rise the name for the model, the
Competing Values Framework.

At the University of Michigan, the Competing

ER

ER
Values Framework is used to organize an ap-
proach to leadership and management devel-
opment. Individual leadership competencies,
for example, are developed and improved in
the context of the organization’s culture, its
The second dimension differentiates an strategic competencies, financial strategies,
internal orientation with a focus on pressing problems, and desired outcomes. All of
integration, collabo- ration, and unity from these factors are measured by instruments
an external orientation with a focus on based on the Competing Values Framework,
differentiation, competition, and rivalry. For thus providing an integrated and consistent
example, some organizations and
managers are viewed as effective if they

2
 An Introduction to the Competing Values Framework /
approach to individual and 11.11
organizational development and
improvement. An illustration of the
Competing Values Framework provides
an illustration of the key values,
leadership types, value drivers, approaches
to change, and theories of effectiveness.

Leadership development experiences

and executive education programs often
focus on competencies and capabilities
that reside in each of the four different
quadrants of the Framework. The
specific leadership tools and
techniques that receive emphasis with
leader- ship groups are often determined
by the orga- nization’s own culture,
aspirations for change, competencies of
the senior leadership team, or the data
feedback that individuals receive from
various assessments.

For example, tools and techniques such

as teamwork, collaboration, talent
management, empowerment, or inter-
personal relationships could be highlighted
in the upper left quadrant. X

COLLABORATE
(CLAN)

ER
ER

Do things together

The opposite kinds of tools or techniques,

such as competitiveness, fast response,
decisive- ness, driving through barriers, or
goal achieve- ment, could be highlighted
in the lower right quadrant.
X
ER

ER

COMPETE
(MARKET)

Do things fast

3
This framework also suggests that tools The opposite kinds of tools or techniques,
and techniques focused on innovation,
fo- cused on assessing and measuring,
creativity, ar- ticulating future vision, controlling processes, structuring, efficiency
transformation change, or entrepreneurship
improvement, or quality enhancement, could
could be address in the upper right be addressed in the lower left quadrant.
quadrant. X
X

CREATE
(ADHOCRACY) ER

ER
ER

ER

Do things first
CONTROL
(HIERARCHY)

Do things right

COLLABORATE CREATE
(CLAN) (ADHOCRACY)

Do things together Do things first

ER

ER

CONTROL COMPETE
(HIERARCHY) (MARKET)

Do things right Do things fast

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 & Profitability
Uniformity
Theory of Theory of
Effectiveness: Effectiveness: Aggressively competing
Control and efficiency and customer focus
with capable processes produce effectiveness.
produce effectiveness.

Stability
Control Incremental Fast
Change Change