David Rock, SCARF, And The 3Cs of Business Culture
David Rock is the director of the Neuroleadership Institute, and he explains his acronym SCARF in this interview.
Adam Bryant, NeuroLeadership Institute’s Chief, on Shared Goals
Bryant:So what does the SCARF acronym stand for?
Rock: It stands for status, certainty, autonomy, relatedness and fairness.
Status is literally your perception of where you are in the pecking order around you, and it’s a feeling of being better than or worse than others. We feel uncomfortable until we work out our status with people. We are more comfortable and we’re more effective when there’s a clear status arrangement between people. When we feel a higher status, we get a slight reward. When we feel lower status, we get a strong threat. The challenge is that if somebody continuously fights for high status, all the other people around them might be getting a strong threat response.
One of the challenges with management is you’ve got very smart people who are high status, and they like to feel smart. They give lots of feedback to everyone else about what they should be doing better, and other people take that as a threat. People react to a performance review as if someone is saying your life is in danger. And the pushback is real. People will push back so intensely because they experience a strong nonconscious threat response. It’s the same mechanism that makes people argue to be right even when they know they’re wrong.
Certainty is a constant drive for the brain. We saw this with Hurricane Sandy. The feeling of uncertainty feels like pain, when you can’t predict when the lights will come back on and you’re holding multiple possible futures in your head. That turns out to be cognitively exhausting. And the more we can predict the future, the more rewarded we feel. The less we can predict the future, the more threatened we feel. As soon as any ambiguity arises in even a very simple activity, we get a threat response. So we are driven to create certainty.
This is challenging in the context of work. When the boss walks in the room, they create a status threat, but they also create a certainty threat because they often create all sorts of change, all sorts of chaos, and you don’t know what’s coming next. But many organizations are taking an open-book-management approach, making all their financials available to everyone. I think there’s a lot of power in increasing people’s sense of certainty and reducing the inherent uncertainty that can happen in an organization.
The third one is autonomy, which is a sense of control. It’s similar to certainty, but it’s different. Certainty is prediction. Autonomy is control. And it’s a very important thing for us to feel a sense of control, so much so that a small stress where you have no control generally is in fact a very big stress. When autonomy goes down, it’s a strong threat. So when the boss walks in the room, they’ve got the final say, so suddenly your autonomy goes down. So now we’re three for three with just the boss walking in the room.
Let’s shift to relatedness. We make a decision about each person we interact with that impacts basic processing and many other things. And the decision we make about everyone is, “Are you in my ‘in’ group or in my ‘out’ group?’” If you decide that I’m in your “in” group, you process what I’m saying using the same brain networks as thinking your own thoughts. If you decide I’m in your “out” group, you use a totally different brain network. So the very level of unconscious perception has a huge impact based on this decision of: “Is this person similar to me? Are they on my team? Do we have shared goals, or are they in my out group?”
This is the neurobiology of trust in a sense, but also of teamwork and collaboration. It feels good to be with “in” group members. But we basically treat everyone as foe until proven otherwise, with the exception of really attractive people or if you’ve had a moderate amount to drink.
The important question this raises is, “How do we create an ‘in’ group?” And the research is really clear. If you can create shared goals among people, you can create quite a strong “in” group quite quickly. When you can find a shared goal, you turn an “out” group” into an “in” group. Unless a leader creates shared goals across an organization, an organization will be a series of silos. That’s the inherent way that we live. We naturally think in small groups.
The final one is fairness, and it’s very fundamental. A fair exchange of anything is intrinsically rewarding. An unfair exchange of anything is intrinsically threatening — and not just threatening, but very intensely threatening. So you can give someone $20 in a study and they can be really angry at you, rather than happy, because someone else got $40.
So these are the five domains of SCARF, and they are playing out in every situation, every interaction.
When a leader walks in the room, everyone else’s status goes down, everyone’s certainty goes down, everyone’s autonomy goes down. The relatedness to the leader goes down. And often fairness will go down in particular just because leaders are paid so much more money for what can look to others like less work. So what you see in general situations at work is people feeling a threat in all five domains, just due to their boss’s existence.
A smart boss will notice this and do all sorts of things to try to fix it. Some bosses will try to play down their status. A smart boss will work on certainty and make sure they’re establishing clear expectations. That really helps people. That also helps with autonomy, when you have really clear expectations.
You can’t do much about fairness. You can be more transparent. That will help fairness, but leaders are going to be paid more money for what looks to some people like less work. People will probably think it’s unfair.
I think the domain where leaders can have the biggest impact is relatedness. Many people have had a boss they really wanted to work hard for because they respected them. It doesn’t have to be love, but it’s a sense of respect. And I think that those bosses have worked hard to have a sense of relatedness with people, which comes from having shared goals and making sure there’s a feeling of being on the same team, not a sense of “us” and “them.”
SCARF is a useful model for thinking through the effects of social threats and rewards.
Turning it around, we do best in a work environment of high status, high certainty, high autonomy, high relatedness, and high fairness. Anything less is a tradeoff. But company cultures and individuals’ behavior often move the needle the wrong way: by threats instead of rewards, and by limiting the various factors in SCARF.
I make a distinction in my work between three kinds of companies: cooperative, collaborative, and competitive. (I’m writing a report at GigaOM Research related to that, right now, in which I lay out the 3C model of business psychodynamics.)
My bet is that collaborative companies — strongly biased toward fast-and-loose networks built on fluid personal relationships, or ‘connectives’ — are a more likely petri dish for high SCARF culture. Basically, the context likely to provide the lowest social stress, at least for those who are temperamentally inclined for a work environment based primarily on many weak ties, voluntarily forged.
Competitive cultures, where dominance by high status individuals leads to high stress and lower SCARF for the rest, sit at the other extreme of social stress, where our psychological groundedness is a hazard in a zero sum game. These are environments more like cats fighting in a gunny sack than social systems, at least from my experience.
And collaborative cultures, where the individual is supposed to find meaning from membership in a collective with shared long-term goals defined by an elite, are better that outright competitive cultures on the SCARF measure, but perhaps require too much loss of autonomy, and too much acceptance of the rigid and inflexible processes and policies of a slow-and-tight organization. These are work environments characterized by imposed strong ties, where social connection by choice is considered a leisure time activity, and pursuing your own professional direction is fine so long as it lines up with the strategic interests of the business. A workplace that’s geared to the elite, and the in crowd.

