Sometime in the 1980s, I read a book written by Manfred Kets de Vries who claimed to have found six types of corporate cultures. The most intriguing thesis of the book was that actually most organizations are not sick, but not entirely healthy: the so-called lingering organizations. The other five types of organizations are: the dramatic organization, the depressive organization, the paranoid organization, the coercive organization, and the schizophrenic organization.

The dramatic organization is hyperactive, impulsive, very adventurous and dangerously unrestrained. The decision-makers base their ideas on intuition and impressions instead of facts. The leaders use their charisma to concentrate all the power in the top. They can therefore undertake very risky operations. They do these things to create a completely different environment without really considering the existing business environment. Their goal is unlimited growth. The man in the top wants to be the center of everything. He wants to show what a good leader he is. Without really considering the reality, this kind of behavior can easily result in great disasters.

The depressive organization is characterized by apathy, lack of self-confidence and conservatism. The communication climate is passive and aimless. The activities are implemented according to predetermined programs and routines. The employees are never asked to show initiative. In stable markets, long established companies can withstand many crises despite their depressive state. They can survive as long as the technology and the competitive pattern remain the same. The environment of these organizations is usually protected with trade agreements and fixed tariffs.

The paranoid organization is characterized by extreme suspicion at the top. This is mirrored by the extreme emphasis on procedures which are aimed to collect information and exert control. A complex information system is created to analyze all the dangers of the outside world. Procedures are written down in detailed manner and everybody is obliged to continuously write reports. This need to regulate everything and be alert all the time results in