Sunday, May 28, 2006

Conspiracy - Part 2 - Blackmail

Corporate culture takes many forms, but genuine narrative traditions are rare. At Shatterproof Glass and my last employer, folk tales formed in irrational environments where management occasionally acted in ways that benefited employees. The paternalistic company produced a trickster tradition to explain the old man who ran the company, while the caste bound company fomented a conspiratorial belief that any incompetent who survived did so only because he, or she, had the goods on someone.

At the second company, the most egregious example was the manager caught with pornography on his computer who not only was not fired, but went to work for our customer. It was no mere rumor. I know people who were forced to see it, when the investigators who found it needed witnesses. I know the woman who was curious when everyone denied it existed and hacked into the computer to discover the pictures were girls the age of the man’s teenage daughters. What other explanation could they find for someone who broke every rule, violated every taboo, and was protected?

No one was particularly curious about what someone knew or how someone survived. "He must know someone" simply became the explanation for the inexplicable. When there’s no interest, there can be no tale. But that doesn’t mean a shared culture doesn’t exist signaled by a proverb without form, a moral without a story. Wisdom without explanation was distilled into a motif, the nub of the narrative tradition.

The ubiquity of the superstitious explanation for survival became apparent when peopled acted on the belief that blackmail and extortion were the ways to survive. The man, who reported the flawed bookkeeping at the end of the previous fiscal year, believed he could save his position because he knew what had been going on, and contacted higher up managers to remind them. The deputy general manager ignored him, and publicly gave his support to the transgressing CFO.

A few months later, the whistle blower began to say, his friends would take care of him. And, in the end, that’s what happened: one of the customers who was aware of the fiscal year-end shenanigans found him a job. Within a month of his transfer, our CFO laid off everyone he dared who knew what had happened. He later let people know he waited until the customer’s protégé was safe, that is, until there was no one left for the laid off to know.

A supplier demanded payment the same day his invoice was offered, even though the contract stipulated 30 days. When the purchasing and payables departments refused to do his bidding, he threatened to go higher. The message came down: pay the invoice the day it is received. When the manager who had responsibility for overseeing that supplier’s contract tried to exercise some authority, the message came down. Oversight was transferred to the deputy general manager, and the CFO was given notice. In this case, acting on the belief in veiled power worked; the supplier always hinted he had connections.

The underlying culture in this company may have arisen from doing construction for the government: each world is rife with rumors of power and kickbacks. More likely, it arose from its caste structure. In a normal bureaucracy, The Peter Principal tells us, people are promoted until they no longer are promotable. Caste societies have layers of permissible movement that tend to hinder promotions to levels of incompetence. When the normal bureaucratic dynamic appears in the caste world and someone rises who is incompetent, an explanation must be found.

Our local caste system also had very limited channels of communication between its layers. When I first worked for the company, the finance manager was a retired supply sargent who cultivated moles to keep him informed. In my department they happened to be members of the CEO’s church. The church provided an alternative, self-selective social group that crossed corporate castes, and provided an acceptable venue for identifying go-betweens.

The computer operations supervisor was seen as a timeserver who protected his position by consistently giving each of his employees a bad review. Those reviews allowed his manager to allocate the budget for raises to others. The good workers with the bad reviews told me, the supervisor must know something and he made his intercaste contacts through his lodge.

The source for tattletales varied with individual managers; but the perception that that was a means for favor continued. The most recent CEO and CFO each hired consultants to talk to employees. While some had initially been willing to talk to the new owners, the consultants were distrusted before they appeared. The fact that each round of consultants resulted in a round of demotions or layoffs reinforced the distrust between castes, and again the need to explain why less competent people were kept at the expense of the more competent.

The narrative tradition disintegrated when everything harmful that could possibly be known about someone was public, and men still kept their jobs. The CFO lied to the customer and his superiors about the financial health of the contract and kept his job. Men at the customers were accused by the media of severe derelictions of duty, and only a few tokens were punished. Alcoholics and womanizers were retained. Faith in blackmail cannot exist when there’s nothing to reveal.

Narrative traditions, no matter how truncated, are comforting, for they provide explanations. When they are lost, they leave people defenseless; when the myth is gone, rituals cannot function.

As the situation at my last employer disintegrated, people stopped testing their belief in the value of extortion as a way to survive and turned to conspiracy’s handmaiden, paranoia. People began to exchange information on slights and strange comments that could foretell the next victim. The sudden willingness to talk, the openness to full narratives, defined the culture that was dying. When people fear their co-workers as possible informants, they either do not talk to one another or do so in cryptic ways that only the trusted can understand. When no peer has power to harm, then it’s safe to talk. Whispered allusions no longer are needed, and a folk tradition expires.

Sources:
Last employer, see "Culture Consultants - Part 2 - Sociology," 26 March 2006 and "Takeover" series, 19 February 2006-5 March 2006.

Peter, Laurence J. and Raymond Hull. The Peter Principle: Why Things Go Wrong, 1969.

Shatterproof Glass, see "Corporate Culture - Part 1 - Trickster Tales," 12 March 2006.

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