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FIRM PRACTICE MANAGEMENT

‘Culture is a combination And how about the market culture?
Gage: The market culture is very externally
focused. It’s about how to present yourself out there
of shared practices, norms, to the marketplace. [Organizations with this type
of culture] are very conscious of things like image
and beliefs that shape what and appearance. They want to have a reputation and
create an image that they have expertise and they’re
able to interact with clients in different market
people do and how they do it.’ segments. At times they can be client-oriented at
the expense of a people orientation, whereas just
the converse is true in the clan or in the hierarchical
Guy Gage, on organizational culture setting.

What about the adhocracy culture?
In your experience, accounting firms tend to have Gage: That’s a Google- or Salesforce-type
either clan, hierarchical, or market cultures. Can organization. They’re really big on being known for
you tell us about the clan culture? being cutting-edge and entrepreneurial. They have
Gage: In a clan, it’s about us being together — a whole different view about mistakes. They’re the
very relational with an emphasis on harmony and ones that say “fail fast,” and obviously that’s anath-
stability and getting along. [In this type of culture] ema to [most accounting firms]. There are some
if people don’t particularly care for what someone’s firms out there that do have a bit of that flavor but
doing, they probably won’t say much about it because not for the most part.
they don’t want to shake things up. There’s a peaceful
coexistence that tends to occur. But the net result is Quinn and Cameron’s model was developed in
a real, comfortable, stable, enjoyable setting in which the 1980s. Is it still widely accepted today?
someone can do their work and enjoy their career. Gage: The answer is yes, but the problem is
nothing regarding culture is widely accepted. There
How would you characterize the hierarchical just aren’t that many models out there. A lot of
culture? people talk about culture, but they don’t define
Gage: That’s also very common in CPA firms. archetypes like Quinn and Cameron do, which is
It actually has as much to do with structure as what I like so much about their theory.
it does with hierarchy. In this culture people are
organized. They have frameworks and processes and How can firms know which archetype
procedures, which all firms do, but they place more predominates for them?
importance on following those prescribed ways Gage: One way is by going back to the values
than employees would in a harmonious clan culture. and principles of the founders. Typically, firms don’t
In a harmonious culture, it’s more important to start up just like a weed somewhere. They start
find ways of getting along and accepting variation off with a vision of a founder. That founder has
among people. In a hierarchical firm, they’re going certain attributes, certain values that they hold that
to tolerate people so long as they’re compliant with are important to them. They build the firm, then,
the procedures and the right steps to follow. around those values. If you’re in the third or fourth

IN BRIEF their culture include speaking with new model outlines four “archetypes”
employees, conducting exit interviews, of organizational culture: clan,
■ Knowing your firm’s organizational and looking back to their founding hierarchical, market, and adhocracy
culture is key to hiring the right people. principles. cultures.
But firm leaders can have difficulty ■ Firms can also use organizational ■ Certain job interview questions can
describing their culture, simply because culture models to see which common give hiring personnel a better sense of
they’ve lived within it for so long. types of workplace culture most whether an applicant would be a good
■ Some ways firms can gain insight into resemble theirs. One prominent fit for their firm’s culture.

24 | Journal of Accountancy January 2022