Strong cultures can work well as long as they have strong leaders in place to make appropriate short- and long-term decisions. These cultures Is Your Organization Ready for Changing Times?

reflect the personality and inspiration of the dominant leader, and while they are often wildly successful, over time they can falter when these strong, visionary leaders leave or die without a succession plan. The Zenith Radio Corporation is perhaps one of the best examples of this style of culture. Zenith was a fabulous company that dominated the radio and television manufacturing industries early in the twentieth century. Commander Eugene F. McDonald, its charismatic founder, guided the enterprise for 45 years, during which time Zenith led with innovations that included the first portable radios, the first AC-powered radios and the first subscription TV system. McDonald not only led his company to greatness, he also helped develop and was the first president of the National Association of Broadcasters. However, as rigid as he was charismatic, McDonald made almost every major decision in the company himself. The effectiveness of Zenith was all based on McDonald’s ability to make proper decisions, issuing orders and having them carried out. Everyone in the organization looked to McDonald for direction. But he left no succession plan. So after his untimely death in 1958, there was no one in the company to fill the huge void he left. Zenith soon lost its number-one position in television manufacturing, and because of decisions that reflected the tastes and preferences of McDonald, the company had no other product lines to compete in a rapidly changing industry. But if any company lacks the ability to adapt to the changes brought on by the new needs of customers, new competition or faster technologies, it can end up like yesterday’s news.

Since then the company has gone through reorganizations, name changes and mergers as it struggles to survive. Strong cultures can do well while led by their founders or other strong leaders. But over time, they do not create enviable track records. Often, managers just below the leader never gain the experience necessary to be strong leaders on their own. Or they fail to see the possibility of any movement upward and therefore leave. Those leaders who are left behind, and who had looked to the strong leader for guidance, can suddenly feel directionless. Subcultures may even head off in different directions, weakening the entire enterprise’s identity and collective purpose.