The CVF model looks at an organization based on two cultural dimensions; Horizontal and Vertical. Horizontal: Inward / Outward Focus The horizontal dimension is used to plot the degree to which the organization focuses inwards or outwards. If an organization’s position on the horizontal axis tends toward the left, it is focused primarily inward. If it tends toward to the right, the organizational focus tends to be outward, towards customers, suppliers and the external environment. An internal focus is valid when maintaining a corporate identity may not be as important as pleasing external stakeholders. Hewlett Packard and EDS were well known for creating an internal culture that was recognized, and perceived as having value.
Vertical: Stability/Flexibility The position on the vertical axis determines who makes decisions. At the lower end, control is with management, whilst at the upper end, it is devolved to employees who have been empowered to decide for themselves. Stability is a valid form when the business is stable and reliability and efficiency is paramount, but when environmental forces create a need for change, then flexibility becomes more important. (Changing Minds.org) The two dimensions of the CVF are further classified into four models or cultural types, each one containing a different set of effectiveness criteria. Quinn and Rohrbaugh (1983, p.371): Clan, Adhocracy, Market, and Hierarchy, respectively (Cameron and Quinn, 2006, p.29‐35).