That's the deep universal truth that we and others stumbled onto in
1982. We don't foresee that much will change in the century ahead. Peo-
ple will continue to be human, paradoxically committed to both ratio-
nality and spirituality. They will always want work life to make sense.
They will want to belong to a cohesive group. And, they will yearn to
make a difference as well as a buck.

In 1982, we were convinced that a value-driven enterprise, united
around shared values, would outperform competitors -- if the prevailing
cultural patterns matched the current demands of the business environ-
ment. Since then, evidence has accumulated to suggest that our specula-
tion was not too far off base. Authors such as Kotter and Heskett or
Collins and Porras have demonstrated that a well-aligned business cul-
ture pays significant dividends over time.

As we look back on the companies we held up as exemplars in 1982, some
have prospered, others have stumbled or fallen. But either continued success
or abrupt failure still appears to be governed by a universal maxim that cul-
tural cohesion plays a big role in economic success or failure. When cultural
patterns mirror environmental challenges, all is well. When the environ-
ment changes and obsolete ways of behaving persist, organizations fail.

What seems equally obvious is that enlightened leadership can turn
things around almost as fast as the situation can decline. Witness the
contemporary rebirth of Continental Airlines under the stewardship of
Gordon Bethune or the revival of Hewlett-Packard's commitment to in-
novation presided over by its new CEO, Carly Fiorini.

Our efforts to capture and articulate the deeper symbolic inner workings
of modern organizations have changed the way many view the human ex-
perience. We hope that this vintage edition of a book written two decades
ago will help today's managers and leaders see the pitfalls and possibilities
of life at work in the millennium ahead. Underneath the rational veneer of
the workplace lurks a primordial essence of human spirit that neither tech-
nology nor willfulness can ever fully replace. Attend to culture for your
pleasure and profit; ignore it at the risk of perplexity and peril.

In reading this classic edition of Corporate Cultures we hope you
achieve the benefits of some aged insight. For an update on our thinking
on the subject, pick up The New Corporate Cultures, again co-authored by
the two of us. We remain definitely older, hopefully somewhat wiser, but
still deeply committed to the embryonic ideas launched a while ago and
still viable today. This edition offers our readers a reprise of some ideas
that have stood the test of time, which we believe are equally relevant for
the tough challenges that lie ahead.

Terrence E. Deal, Allan A. Kennedy
January, 2000

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