This aspect of corporate culture refers to the values and accompanying behaviors that individuals in the organization find acceptable or unacceptable. In other words, at the risk of stereotyping, it refers to the kinds of people who work in your organization. Depending on the nature of your business, there may be a great deal of homogeneity or diversity in terms of the types of people and their individual values and behaviors.

For example, Bob worked with a Christian product company where, not surprisingly, the majority of employees shared a fairly uniform worldview. Almost all belonged to the Christian faith, tended to dress conservatively, voted Republican, opposed abortion, and believed that one should forgive the sins of fellow human beings. Homogeneity was a hallmark of their culture.

Another homogeneous company Larry worked with provided treatment programs for troubled children and adolescents. The majority of these employees, as counselors, social workers, and psychologists, based their livelihood on being understanding, tolerant, and sympathetic to others. Their CEO, a no-nonsense Harvard MBA with a background in overseeing business turnarounds, had no problem telling people what he thought. If something didn't make economic sense, he did not hesitate to question it. He told Larry that one of his biggest frustrations was that almost everyone in the organization tended to communicate indirectly and generally shied away from confrontation. Worst of all, he complained, "They are so nice that when I need a straight answer about performance, or ideas for change, if there is the least chance that what they say sounds like criticism of anyone, they button their lips. It drives me crazy."

It is not surprising that two companies with such narrow focuses employ so many similar and like-minded people. In organizations that provide specific services or products, this kind of homogeneity often prevails. A graphics firm will usually have more "creative types," an accounting firm will be filled with people who want "just the facts, ma'am," and a sales organization will overflow with extroverts. When such homogeneity exists, you may find it easier to build a culture of absolute honesty, straight talk, and integrity because you will know where to focus your efforts. For example, if you employ many extroverted salespeople, you probably won't have to worry too much about teaching them to speak their minds, but you may have to address the tendency to "stretch the truth." And while you can probably rely on number crunchers to speak truthfully and plainly, you may have to encourage them to speak up. The Christian product company and therapists mentioned earlier probably won't need any lessons in honesty but might benefit from training in assertiveness and constructive confrontation.

Of course, most organizations have a more general focus, and individual assumptions and personality types will be far more diverse. In that case, cultivating a culture of honesty may prove more challenging because you'll be working with more variables. As you assess individual attitudes toward open expression and the accompanying behaviors, you'll find some people like Lisa (the system cop who challenged her boss Tom's offhand remark), who will tell you what she thinks, no matter what the consequences. Others will only tell you what they think when you ask them directly. And some will only tell you what they think you want to hear, regardless of the truth.

In addition, individual attitudes toward honesty can vary widely.

When Larry's daughter, Meagan, was a young sales manager, she learned this unsettling truth when, at a team meeting, one of the aggressive salesmen on her team proudly announced that he'd earned an extra $15.00 at lunch. After paying a $4.50 tab with a $5 bill, the waitress gave him change for a $20 bill, and he happily stuffed the money into his wallet without pointing out her mistake. The salesman's story led to a discussion within the group about the ethical issue of keeping the change. To Meagan's surprise, the group's reaction was mixed. One-third of the team saw nothing wrong with the salesman's action, one-third thought he should return the money, and one-third had no opinion.

How do you cultivate a culture of honesty and openness when dealing with a mixture of people with diverse attitudes, varying abilities to candidly speak their minds, and different definitions of honesty? It all comes back to values—not individual values, but the values of the organization. By clearly defining, establishing, and proclaiming values that promote honesty and healthy debate and then building a culture that supports them, you increase your chances of either attracting individuals who uphold those values or encouraging employees to cultivate them.

Southwest Airlines, for example, presents itself as an airline where you can pay a low fare for a no-frills flight but have a fun experience and get great customer service. Anyone who flies Southwest can tell you that its employees have internalized the organizational values of fun and great customer service: They all seem to be having a blast working together to serve their customers. The fact that Southwest hires, trains, rewards, and promotes people based on how well they demonstrate these values raises the odds that they will get people to act that way.

Here are some questions to help you identify the individual assumptions or personality types among your employees and to determine whether homogeneity or diversity exists:

The Nature of Your People

• Does your organization have a specific focus that naturally draws people from certain backgrounds or professions or with certain worldviews?

• Do the majority of people in your organization fall into a certain age group (twenty-something, over forty)? If so, what attitudes or behaviors can you attribute to that group?

• If homogeneity in personal attitudes and behaviors exists, which aspects of those attitudes and behaviors support a culture of honesty and which detract from it?

• If more diversity exists in terms of individual attitudes and behaviors, are you presenting your organization's value system in such a way that employees can internalize and cultivate the key values within themselves?