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Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html
"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."
"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."
"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."
"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."